Graduated (but not completely independent) and completed FAFSA

[Dr. Kermit]

This will be moved to the Financial Aid section, but I figured it would get more exposure here. Is anyone currently working since recently graduating (Dec 2000 or May 2001) and including their parent's income? If so, do you mind posting your EFC? I'm not sure if my parents' income will greatly affect my EFC. I made around 15K for 2001 and my parents earn between 150-200K. (I'm not quite sure of the number since we don't discuss finances in my family.) Thanks!

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[SMW]

Parents' income does not affect EFC for professional students, who are all considered independant by FAFSA. I researched this thoroughly -- do a search and you'll find all kinds of info, not all of which got moved to the FA forum. My folks made a substantial amount of money last year, and even though I reported it on my FAFSA, my EFC was zero because I did not work. Yours will be higher because of the 15K you made. The "family" in EFC is you (and your spouse, if you have one).

 

[Dr. Kermit]

•••quote:•••Originally posted by SMW:
•Yours will be higher because of the 15K you made. The "family" in EFC is you (and your spouse, if you have one).•••••Someone in the Expected Family Contribution thread mentioned that my parents' savings would affect my EFC. Is that false then? And how does FAFSA know if I saved the money I earned. I did save a little, but most of it went into travelling. Although I'm not married, my law school boyfriend thinks that my income is "our" income!

 

[lilycat]

SMW is exactly right -- if you are considered an "independent" student, your parents' income has no bearing on your EFC. However, your parents' income will affect your eligibility for low-income grants and scholarships that are usually administered by the individual schools.

 

[lilycat]

•••quote:•••Originally posted by Dr. Kermit:
•

Someone in the Expected Family Contribution thread mentioned that my parents' savings would affect my EFC. Is that false then? And how does FAFSA know if I saved the money I earned. I did save a little, but most of it went into travelling. Although I'm not married, my law school boyfriend thinks that my income is "our" income!•••••It all depends if you are considered a "dependent student" or an "independent student" by FAFSA. I forget the guidelines, but they are pretty clear on the online FAFSA. If you are a dependent student, I believe your parents income and savings will affect your EFC. If you are an independent student they will not.

FAFSA "knows" if you saved the money you earned by what you tell them on the form -- do you remember all the questions regarding your personal investments, the amount of money in your checking and savings accounts, etc? If you have a lot of money in investments and your bank accounts (like your savings account), I believe that increases your EFC.

 

[Dr. Kermit]

Thanks Lily. No wonder you got into so many top notch schools last year, you're a smart gal. So, I have another question, I did save some of the money I earned last summer and fall, but I spent a lot of it on AMCAS and apps. How will that be reflected when I complete the FAFSA? Or do they only document what I earned and what I paid in taxes?

This whole Financial Aid thing is so baffling to me. At schools, I've been told what you have said, I am considered independent and I need to provide my parents' income if I wish to be considered for institutional aid. They also tell me that I can take out the maximum in Stafford loans, but subsidized and unsubsidized, regardless of my finances and my parents. Is that also correct?

And, on a completely unrelated note, if I choose only to take out a loan for my tuition, how does the school bill me for the remaining expenses such as dorm fees, microscope fees, etc? I'm assuming they just bill me and when I send the loan check to the school they will use it for my tuition, right?

Thanks and good luck this semester!

 

[SMW]

•••quote:•••Originally posted by lilycat:
•It all depends if you are considered a "dependent student" or an "independent student" by FAFSA. I forget the guidelines, but they are pretty clear on the online FAFSA. If you are a dependent student, I believe your parents income and savings will affect your EFC. If you are an independent student they will not.

FAFSA "knows" if you saved the money you earned by what you tell them on the form -- do you remember all the questions regarding your personal investments, the amount of money in your checking and savings accounts, etc? If you have a lot of money in investments and your bank accounts (like your savings account), I believe that increases your EFC.•••••All graduate students are considered independant for FAFSA purposes. My parents will claim me as a dependant for 2001 and 2002 for tax purposes, and I am still considered independant by FAFSA. Otherwise, how would my EFC have come out zero? Good thing, too, as they are not going to help me pay for medical school.

 

[SMW]

To save lilycat from having to go through this yet again, here's <a href="http://www.studentdoctor.net/ubb/ultimatebb.php?ubb=get_topic;f=1;t=007872" target="_blank">the old thread</a> where she divulged her wealth of knowledge on financial aid. I was specicfically asking about putting parents on FAFSA, and in the ensuing thread, she pretty much covered the topic from A to Z. Thanks again, lilycat!

 

[lilycat]

•••quote:•••Originally posted by SMW:
•All graduate students are considered independant for FAFSA purposes. My parents will claim me as a dependant for 2001 and 2002 for tax purposes, and I am still considered independant by FAFSA. Otherwise, how would my EFC have come out zero? Good thing, too, as they are not going to help me pay for medical school.•••••I actually wasn't referring to dependent status on your parents' tax return, but rather the definitions on the FAFSA app. Here they are (copied from the webpage):

You are an independent student if a least one of the following applies to you:

You were born before January 1, 1977;
You are married
You are enrolled in a graduate or professional educational program (beyond a bachelor's degree)
You have legal dependents other than a spous;
You are an orphan or ward of the court (or were a ward of the court until age 18);or
You are a veteran of the U.S. Armed Forces ("veteran" includes a student who attended a U.S. military academy who was released under a condition other than dishonorable)
If you claim to be an independent student, your school may ask you to submit proof before you can receive any federal student aid. If you think you should be considered independent even though none of the above criteria apply to you, talk to your aid administrator. He or she can change your status if he or she thinks your circumstances warrant it based on the documentation you provide. But, remember, the aid administrator won't automatically do this. That decision is base on his or her judgement , and it's final - you can't appeal it to the U.S. Department of Education.

I thought that you needed more than 1 area to apply to you to qualify for independent status, but obviously you don't. Unless people are working at high-paying jobs full-time, or have massive savings, they must be making some kinds of mistakes on their FAFSA forms to be coming up with EFC's greater than $20,000.

 

[lilycat]

•••quote:•••Originally posted by Dr. Kermit:
•Thanks Lily. No wonder you got into so many top notch schools last year, you're a smart gal. So, I have another question, I did save some of the money I earned last summer and fall, but I spent a lot of it on AMCAS and apps. How will that be reflected when I complete the FAFSA? Or do they only document what I earned and what I paid in taxes?

This whole Financial Aid thing is so baffling to me. At schools, I've been told what you have said, I am considered independent and I need to provide my parents' income if I wish to be considered for institutional aid. They also tell me that I can take out the maximum in Stafford loans, but subsidized and unsubsidized, regardless of my finances and my parents. Is that also correct?

And, on a completely unrelated note, if I choose only to take out a loan for my tuition, how does the school bill me for the remaining expenses such as dorm fees, microscope fees, etc? I'm assuming they just bill me and when I send the loan check to the school they will use it for my tuition, right?

Thanks and good luck this semester!•••••FAFSA will ask you for financial info. on your W-2 and your 1040 -- your adjusted gross income is the primary concern. Expenses for applying to med school is not reflected on there. FAFSA just asks about the amount of your investments and your bank accounts. Based on your income, I think FAFSA "assumes" you should have been able to save, or should be able to come up with your EFC -- I had no investments last year and still had a relatively high EFC (probably because I had a good salary). However, you can get loans to cover your EFC if you don't have that kind of cash lying around, which most people don't.

I believe that most grad students should be able to take out the max. in Stafford loans, sub. and unsub., -- I say this with 97% certainty. Your income and parents' income should not impact this. Your parents' income will impact your eligibility for need-based grants and scholarships, and some need-based loans.

When you get your fin. aid award letter, you can specify how much money you definitely want to take out. Typically, your loan check goes from the lender straight to the cashier/bursar's office of the school. They will apply the amount of that check against any outstanding "debts" you have (ie, the price of tuition, fees, etc.). If there is any money left over, this gets paid to you via another check. If there is not any money left over, and the loan check did not completely cover your school expenses, you will receive a bill for the remaining expenses.

 

[Amy B]

I guess they look at my husband's salary since I don't work anymore. The EFC they put down on my application approval is $23,000. Now, does that mean they think I can spend $23,000 of my own money? Which by the way, I don't have that kind of money lying around. <img border="0" title="" alt="[Frown]" src="frown.gif" />