FAFSA questions

[ok-ability]

I’m new here so please pardon/let me know if there’s a better way to post I missed!

Question: Since I likely won’t work in school, what is the best way to approach filling my FAFSA accurately? Should I pay off all debts with savings to show true net worth? I feel I’m behind on completing this given challenges in education dept but also want to keep savings for any emergencies versus have it be considered ‘excess funds’ for med school

Context: I’m admitted to my State medical school. Technically I’ve lived the longest in CT but got a job that moved me to Ohio within a year of applying so I claimed Ohio as home state. I’m filling FAFSA now but worried it’ll be assumed I have ‘good funds’ based on my savings from my non-traditional work life before medical school. This is inaccurate because my net worth is lower based on other loans I have to keep paying while in school which FAFSA doesn’t seem to have a section to disclose. IDR may be paused. Any advice?

Thank you

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[Mr.Smile12]

Question: Since I likely won’t work in school, what is the best way to approach filling my FAFSA accurately? Should I pay off all debts with savings to show true net worth? I feel I’m behind on completing this given challenges in education dept but also want to keep savings for any emergencies versus have it be considered ‘excess funds’ for med school

Context: I’m admitted to my State medical school. Technically I’ve lived the longest in CT but got a job that moved me to Ohio within a year of applying so I claimed Ohio as home state. I’m filling FAFSA now but worried it’ll be assumed I have ‘good funds’ based on my savings from my non-traditional work life before medical school. This is inaccurate because my net worth is lower based on other loans I have to keep paying while in school which FAFSA doesn’t seem to have a section to disclose. IDR may be paused. Any advice?

Thank you

I would pay off as much debt as you can, not to look better on FAFSA, but because interest rates are currently 9% and who knows what will happen with this economy. Access the White Coat Investor and make appointments with your financial aid team to come up with an approach that works best. At minimum, get as much of your consumer debt on high interest paid down. Set up a budget or emergency fund that you can tap into; I don't know what a good floor would be, but at least rent for 3 months.

I'll let others who are engaging in such debt battles comment.

 

[LizzyM]

I would recommend a bit of a cushion for unexpected expenses. Typically schools will provide aid (usually loans) to cover cost of attendance so rent, etc is usually covered but what won't be covered is an essential auto repair or the replacement of a stolen tablet, or the cost of evacuating ahead of severe weather. Make your best estimate of what you'll need over 4 years in that regard (worst case scenario fund) and go from there.

Financial aid officers do recommend that you pay down high interest rate loans so better to arrive with a smaller savings and less debt.

 

[ok-ability]

Thank you so much!
I emailed the FinAid team and they shared they’d get back to me once they see my FAFSA output. But to your point I think I should email again to clarify I will not be working or earning what FAFSA quotes from any past taxes while in school and schedule time to find a means to meet half way. Got it on emergency fund as well. Thank you

I would pay off as much debt as you can, not to look better on FAFSA, but because interest rates are currently 9% and who knows what will happen with this economy. Access the White Coat Investor and make appointments with your financial aid team to come up with an approach that works best. At minimum, get as much of your consumer debt on high interest paid down. Set up a budget or emergency fund that you can tap into; I don't know what a good floor would be, but at least rent for 3 months.

I'll let others who are engaging in such debt battles comment.

I would pay off as much debt as you can, not to look better on FAFSA, but because interest rates are currently 9% and who knows what will happen with this economy. Access the White Coat Investor and make appointments with your financial aid team to come up with an approach that works best. At minimum, get as much of your consumer debt on high interest paid down. Set up a budget or emergency fund that you can tap into; I don't know what a good floor would be, but at least rent for 3 months.

I'll let others who are engaging in such debt battles comment.

 

[ok-ability]

This is helpful to estimate over 4 years. I would have thought about 6 months so your perspective to look even further ahead is an insightful consideration to look into. Appreciate this.

I would recommend a bit of a cushion for unexpected expenses. Typically schools will provide aid (usually loans) to cover cost of attendance so rent, etc is usually covered but what won't be covered is an essential auto repair or the replacement of a stolen tablet, or the cost of evacuating ahead of severe weather. Make your best estimate of what you'll need over 4 years in that regard (worst case scenario fund) and go from there.

Financial aid officers do recommend that you pay down high interest rate loans so better to arrive with a smaller savings and less debt.

 

[passionfroot]

Does anyone know when an applicant (no firm acceptances yet) should complete the fafsa? Or do you wait until you have at least one acceptance?