The Free Application for Federal Student Aid (FAFSA) can make a world of difference to one’s financial aid award. President Barack Obama’s new tax credits can benefit parents of dependents. College students depend on unsubsidized loans, subsidized loans, tax credits, federal grants and work-study to cover the rising costs of tuition. But what exactly does all this financial jargon mean?
Fafsa Tips
“The biggest tip is just be sure to do it online,” said Wendy Olson, director of financial aid. “It’ll look for places where you’ve made a mistake and let you know right away.”
Furthermore, FAFSA (the Free Application for Federal Student Aid) on the web will avoid asking you questions that don’t apply to you, Olson said. There is a FAFSA worksheet that is useful for families to print out before doing the application online.
The form uses a PIN process to fill out the information. Parents and students each have their own PIN. The best thing is for students to go in and fill out as much as they can, and then the parents do the rest, Olson said.
If a student is worried about not having his or her taxes done on time, he or she can go in and estimate this information to meet the deadlines and go back and correct it later, Olson said.
The FAFSA deadline for returning students at Whitworth University is May 1. However, since some aid is limited, it may help to apply early, according to the Northwest Education Loan Association (NELA).
Finally, be prepared to show the school proof, such as tax returns and income documentation, to verify FAFSA information. According to NELA, a school is required to verify 30 percent of all applicants.
“It’s kind of a partnership between the students, the parents and the financial aid office to make it possible for students to be here,” Olson said.
Tax Credits
“Under the administration’s proposal, parents earning up to $85,000 a year would receive credit for 35 percent of their child care expenses…bumping up their maximum total tax credit to $2,100,” said Alice Gomstyn of ABC News in her article “Obama’s Middle Class Tax Credits: What Do They Mean for You?”
Parents shouldn’t forget about the federal Hope Credit (for which they can receive up to $2,500) or the Lifetime Learning Credit (up to $2,000).
Work-Study
A student may become eligible for federal work-study by filling out the FAFSA. However, he or she must get a job to receive these funds, Olson said.
“We actually award more than we have because we know some students will never use it,” Olson said.
Wages for work-study must meet or exceed the federal minimum wage, according to the U.S. Department of Education. Income earned from federal work-study is listed separately on the FAFSA, Olson said.
Story by Heather Kennison
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