FAFSA MD-Deadline Fast Approaching

It's hard to believe that January is already gone and February is close on its heels! This can only mean one thing, in my world at least - that it is FAFSA (Free Application for Federal Student Aid) time.

Parents of seniors in high school (and those parents/students who are enrolling for second year of higher education), the Maryland priority deadline for FAFSA submission is March 1, 2008 for the award year 2008-2009. Also, most higher education institutions have a financial aid priority deadline date that may have already occured, but most are around the March 1 -15 timeline.

"Why bother?" you ask. The answer is: filing a FAFSA opens the door to aid eligibility in the form of federal grants, state grants, federal student loans, federal work study programs, most institutional grants/scholarships, state scholarships, and even some private scholarships.

At this time, when filing the 2008-2009 FAFSA on the Web, www.fafsa.ed.gov , you have the ability to request a PIN (Personal Identification Number) in real-time. So as you are completing the FAFSA you can also apply and receive "real-time" PIN. Remember, you will need a PIN for each individual student applying for financial aid through the FAFSA and at least one PIN for the parent who will be signing the FAFSA electronically.

"What about taxes?" Filing the FAFSA requires that the student and the parent report income and asset information, along with demographic information about the student and their family. You will be using your 2007 IRS Form 1040, 1040A, or 1040EZ to complete the FAFSA; however, if you have not been able to get to the tax preparer's office yet don't panic. You can complete the FAFSA using estimated 2007 income and asset information. Generally, I suggest that you download the 2007 copy of the tax form you filed last, i.e., 1040 or 1040A and use your 2007 W-2 and any other 2007 tax information to "mock up" an estimated 2007 tax form. You will more than likely have to make corrections to your initial FAFSA; but it's better to have to make some corrections than to miss the deadline entirely.

"I'm divorced from my student's other biological parent, but remarried - How do I handle that on the FAFSA?" The short answer is this - file the FAFSA for the dependent student with the custodial parent (the parent that the student lives with more than 50% of the year) and that parent's current spouse. If there is "split" custody and the student truthfully spends equal amount of time at both parents' residences, then the parent who provides the most financial support is considered the "custodial" parent for purposes of filing the FAFSA.

The Department of Education's Federal Student Aid department looks at the FAFSA as a snapshot of the family's financial picture at the time they are filing for federal aid. The State of Maryland used the federal methodology for calculating a families "financial need for higher education assistance". Also, some Maryland aid is based on family income thresholds and total number in family. To investigate what's available through the State of Maryland visit the website www.mhec.state.md.us . When you file the FAFSA on the Web and indicate at least one Maryland instituion as a choice of institutions, MHEC will receive the same information as the Federal Student Aid department and process your state aid application accordingly.

Here's another often asked question: "I haven't claimed my student as a dependent for the past several years, and they are making their own money this year and plan to pay for their college expenses - am I still required to input my (the parent) income and asset information?" In Section 3 of the FAFSA there is a series of questions, 8 to be exact, that when answered will determine the student's dependency status. Whether the student is considered a dependent or an independent student relies on the answers to these questions. Is the student's age as of Jan 1, 2008 over 24?, is the student receiving their master's degree or higher?, is the student currently married?, does the student have a child they support more than 50%?, does the student have any dependents other than a child or a spouse they support more than 50%?, is the student an orphan or a ward of the court?, is the student a Veteran of the Armed Forces?, or is the student currently serving in the Armed Forces?. An answer of "yes" to any one of these eight questions will deem the student "independent" and they would use their income and asset information alone to determine their federal and state aid eligibility. If the student answers "no" to all the questions, then it should be clear that the student is considered a "dependent" and would use their parent(s) income and asset, as well as their own, to complete the FAFSA.

Be aware that if the student has a legal guardian or is being raised by someone other than their biological/legal adoptive parent, there may be extinuating circumstances to filing the FAFSA. The FAFSA defines "parent" as biological parent, adoptive parent, or stepparent. Those not considered "parent" and thus not required to complete the parent section of information on the FAFSA are: foster parent, legal guardian, or grandparent. If you fall into the latter of these circumstances please talk with the individual institutions that you are applying to. You may be eligible to file as an "independent" student; but only the college/university will have the ability to determine your status. This is called "professional judgement".

These are just a few of the dynamics that go along with filing the FAFSA. These questions are the common questions asked and many people procrastinate filing the FAFSA because they don't have an answer to one stubborn question. Don't let that be the case with you. Make sure that you are completing the FAFSA in a timely manner, preferably before the Maryland March 1 priority deadline. And if you have questions, don't hesitate to contact SoMD CAN at somdcan@comcast.net . Just post your question and we'll get back with you right away.

SoMD CAN's Executive Director, Sonia K. Wagner, has 18 years experience in the Financial Aid field having served as a Director of Financial Aid at two higher education institutions in the Boston area and consulting at numerous colleges/universities in New England; including Smith College and Amherst College. Mrs. Wagner is ready to answer your questions, and encourages you to make sure that you are filing the FAFSA -- even if you think "we make too much money!" There is money out there, this is the first step to uncovering it.

Hope to hear from you soon,
Sonia