Don’t pay more College than you have to!
Ross Raymond
The U. S. Department of Education has moved the goal posts!
Consider this article a warning and an announcement about a game changer the U. S. Department of Education has released and how it will change the financial aid process.
For the graduating class of 2016 the submission period for sending in the FAFSA (Free Application for Federal Student Aid) began on January 2, 2016 and will close on June 1, 2017. On that report parents willshow their income for 2015.
EFFECTIVE WITH OCTOBER of 2016 the time table has changed. Given students are asking for early decision and also need to know about financial aid the Dept. of Education has moved up the filing date for the FOLLOWING YEAR’S FAFSA. They also determined you should have a COMPLETED 1040 when the FAFSA is filed. In order to do this the base reporting year was pushed backwards to 2015.
IF YOUR STUDENT GRADUATES IN JUNE OF 2016 you will file two FAFSA forms THIS year. One which may already be on file for the school year 2016 -17 and another in October of 2016 for the following school year 2017 -18 and in BOTH cases you will show 2015 income data!
IF YOUR STUDENT WILL GRADUATE IN JUNE OF 2017 you will file a FAFSA form in October of 2016 and show your 2015 income on that report!
IF YOU HAVE A STUDENT ALREADY IN COLLEGE REQUESTING FINANCIAL AID FOR 2017 – 18. You will file the FAFSA this October and use 2015 data as well.
HOW WILL THIS ACTION HURT PARENTS AND STUDENTS?
It won’t hurt some parents and might even help some, but many will behurt badly as a result. Given how far back the base line reporting year has been pushed there is a total disconnect between reported income and the payment due dates of college expenses. For those who had “better times” in 2015 than since, they will be reporting inflated numbers on the FAFSA which do NOT reflect the family’s current financial situation! On the other hand if you are BETTER off NOW than in 2015, you catch a break.
The U. S. Department of Education will NOT help or allow you to make corrections to the FAFSA. Given this is a brand new way of doing things the general consensus is most campus financial aid offices will not be able to respond to this situation in a meaningful manner.
My recommendation is that parents who are adversely impacted by this change contact the financial aid office NOW, before the line forms and explain their current situation and how it is affecting their ability to pay for college in the future. Ask for the campus version of their “Change of Circumstances” form.
I know this is confusing and if you need help sorting it out give me a call, but don’t fail to react as it will surely take money out of your wallet if you walk away from aid you might have gotten if only you had taken action.
Good luck, I fear you are going to need it.
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