Philadelphia Tribune - Index

Philadelphia Tribune - Spring 2009 Education Guide - Index

Tuesday, March 24, 2009 Philadelphia Tribune
Page 3
Help for college cash shortage
Even in a slowing economy, high
school students graduate and go to
college. But when your bank account
is already strained, adding thousands
of dollars in tuition to the mix can be
a terrifying thought. Parents and students
don’t have to shoulder the burden
themselves though; financial aid
for those who qualify is available if
you’re persistent and know where to
look.
The first stop on your college financing
journey should be to meet
with the financial aid advisor at the
school your child will be attending (or
hopes to attend). Student and parents
Financing a college education
is becoming increasingly difficult
for many Americans, making
competition for grants,
loans, work-study, scholarships
and institutional financial aid
more intense than ever. Incorporating
a little strategy and
planning can increase your
family’s chances of receiving
federal student aid and create
more time for finding other
ways to save money for college.
Any student requesting federal
financial aid is required to
complete the Free Application
for Federal Student Aid (FAFSA)
each year. FAFSA information is
used by Federal Student Aid to
calculate the expected family
contribution, which is subtracted
from the cost of attendance
at the school(s) a student plans
to attend. That amount determines
a family’s eligibility for
federal aid.
FAFSAs for the 2008-2009
academic year are being accepted
between Jan. 1 and midnight
Central Standard Time, June
30, 2009. However, don’t wait
until the last minute because
federal aid is awarded on a firstcome,
first-served basis. In addition,
most states and schools
use FAFSA information to
award their financial aid. Note
that schools and states often
have their own forms and deadlines.
Following a few simple preplanning
steps will help you
complete the FAFSA more easily
and faster, ensure your information
is accurate and complete,
and ideally save you
thousands of dollars.
First, read and complete the
FAFSA questions in advance at
www.fafsa.ed.gov. Federal Stu-
should meet with the advisor, who
acts as an advocate to get the best
funding package to fit each student’s
situation.
When a student applies to a university,
they will typically receive a financial
aid packet that includes the
Free Application for Federal Student
Aid (FAFSA). This is the key that unlocks
the financial aid process and
gets a student into the system. The
FAFSA can be filed any time during
the year, but the process should start
as soon as parents receive W-2 forms
in January. You can fill out the
FAFSA online at www.fafsa.ed.gov. It
dent Aid estimates that firsttime
users will need less than
an hour to complete the worksheet;
however, it will take less
time if you come prepared with
all of the necessary information.
If you haven’t already, complete
your 2008 tax returns.
Federal Student Aid recommends
that you do your taxes
before completing the FAFSA
because you must report your
income earned in the previous
year. You can save time by
using certain tax preparation
software programs that allow
you to automatically transfer
your tax data into an online
FAFSA worksheet. “The College
Student Financial Aid Worksheet
in TaxACT Deluxe eliminates
time and effort involved
with completing a FAFSA worksheet,”
explains Leigh Aragon,
spokeswomen for 2nd Story
Software, Inc., makers of Tax-
ACT. “Other features also help
identify tax credits, deductions
and strategies that can reduce a
family’s income.”
The higher a family’s cash assets
and adjusted gross income,
the less government assistance
a family will receive. So, in addition
to consulting your personal
attorney or accountant,
Aragon also suggests taking the
following measures throughout
the year in order to maximize
your 2009 tax deductions.
• Contribute as much as you
can to your retirement savings
account.
• Prepay state taxes before
the end of the year.
• Contribute to a flexible benefits
plan.
• Make energy efficient improvements
to your house.
• Pay down or pay off loans
and bills.
• Sell bad investments by
Dec. 31.
Third, gather your tax returns,
Social Security Number,
driver’s license, bank statements
and investment records.
You’ll want these documents for
reference only; you do not need
to mail them to Federal Student
Aid.
If you intend to complete the
is crucial that the form be filled out
correctly, so don’t hesitate to stay in
contact with the school’s financial aid
advisor if you need guidance or have
questions.
The FAFSA covers state and federal
aid, but you shouldn’t stop there.
Colleges and universities provide millions
of dollars in scholarships each
year and the financial help they can
provide shouldn’t be underestimated.
To apply for scholarships, some private
colleges and universities also require
additional forms, such as the
PROFILE, which is administered by
the College Scholarship Service, the
online FAFSA worksheet, apply
for a PIN. A PIN will give you free
access to your information on
the www.fasfa.ed.gov Web site
and allow you to electronically
sign your FAFSA. Since your
worksheet cannot be processed
until it is signed, completing the
free online worksheet and signing
it electronically is by far the
fastest way to submit.
Following these easy steps
financial aid division of the College
Board. Many private institutions require
the form to determine a student’s
eligibility for non-governmental
financial aid like loans, grants and
scholarships.
Even if you’ve been through the financial
aid process before and have
been turned down or have come away
disappointed with your award, don’t
give up. Apply for aid every year even
if you think you don’t qualify. Situations
can change and while a student
may not have been eligible last year,
this year could be a different story. —
Courtesy of ARAcontent
Save money, time with FAFSA
will help simplify and quicken
the process of filling out the
FAFSA, as well as increase
your odds of obtaining the
most Federal financial aid for
2008-2009 and in years ahead.
To learn more about FAFSA,
visit www.fafsa.ed.gov. Information
about TaxACT Deluxe
can be found at www.Tax-
ACT.com. — Courtesy of ARAcontent