FAFSA Mysteries
4/9/2015
www.collegenowgc.org
www.collegenowgc.org
1
Question One
Give three (3) examples of assets that should be
counted in question #41 (student) and #89
(parents):
• “As of today, what is the net worth of your
parents’ investments, including real estate?”
4/9/2015
www.collegenowgc.org
2
Question Two
If a student has $4,000 in his savings account on
the day that he completes his FAFSA, but plans on
buying a computer and other educational supplies,
what is the answer to question # 40?
• “As of today, what is your (and spouse’s) total
current balance of cash, savings and checking
accounts?”
4/9/2015
www.collegenowgc.org
3
Question Three
From the perspective of FAFSA reporting,
when a family saves for college for its
children, should the parents or the children
be named as the owner of the account(s)?
4/9/2015
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4
Question Four
Where is federal work study wages earned
reported on the FAFSA?
• Here: #35 What was your (and spouse’s)
adjusted gross income for 2011?
• Or here: #43c. Taxable earnings from
need-based employment programs, such
as Federal Work-Study and need-based
employment portions of fellowships and
assistantships.
4/9/2015
www.collegenowgc.org
5
Question Five
Will an undergraduate student typically
need to report his or her scholarships on
question #43d?
• “Taxable student grant and scholarship aid
reported to the IRS in your adjusted gross
income. Includes AmeriCorps benefits, as
well as grant and scholarship portions of
fellowships and assistantships.”
4/9/2015
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6
Question six
The student lives with her mother, brother
and teen sister, who is expecting twins in
August 2012. What number is the answer
for Question #72?
• “How many people are in your parents’
household?”
4/9/2015
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7
Question seven
Jon’s parents died when he was 11. His
grandparents adopted him at age 12.
• Is Jon dependent or independent on the
FAFSA?
4/9/2015
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8
Question eight
Elaine is living with a family friend because her
parents lost their jobs and are at risk of becoming
homeless. Her parents provide the friend with a
letter authorizing her to make health and education
decisions for Elaine.
• Is Elaine dependent or independent? Why?
4/9/2015
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9
Question nine and ten
Johnny is a 53-year old student at CCC. Marie is
his 19-year old daughter who lives at and attends
the University of Toledo. Johnny is on disability
and does not file taxes. How will each of them
answer the following question?
• “How many people in your household will be
college students in 2012-2013?”
# 9. Johnny’s FAFSA
#10. Marie’s FAFSA
4/9/2015
www.collegenowgc.org
10
Question One
Give three (3) examples of assets that should be counted
in question #41 (student) and #89 (parents):
• “As of today, what is the net worth of your (parents’)
investments, including real estate?”
– Summer home
– Rental property
– Stocks
– Bonds
– Non-retirement mutual funds
– Money market accounts
4/9/2015
www.collegenowgc.org
11
Question Two
If a student has $4,000 in his savings account on
the day that he completes his FAFSA, but plans on
buying a computer and other educational supplies,
what is the answer to question # 40?
• “As of today, what is your (and spouse’s) total
current balance of cash, savings and checking
accounts?”
– $4,000
4/9/2015
www.collegenowgc.org
12
Question Three
From the perspective of FAFSA reporting,
when a family saves for college for its
children, should the parents or the children
be named as the owner of the account(s)?
• Generally, saving should be done in the
parents’ name(s) due to the asset
protection afforded them
4/9/2015
www.collegenowgc.org
13
Question Four
Where is federal work study wages earned
reported on the FAFSA?
• Here: #35 What was your (and spouse’s)
adjusted gross income for 2011?
• Or here: #43c. Taxable earnings from needbased employment programs, such as Federal
Work-Study and need-based employment
portions of fellowships and assistantships.
– Both
4/9/2015
www.collegenowgc.org
14
Question Five
Will an undergraduate student typically need to
report his or her scholarships on question #43d?
• “Taxable student grant and scholarship aid
reported to the IRS in your adjusted gross
income. Includes AmeriCorps benefits, as well
as grant and scholarship portions of fellowships
and assistantships.”
– NO
4/9/2015
www.collegenowgc.org
15
Question six
The student lives with her mother, brother and teen
sister, who is expecting twins in August 2012.
What number is the answer for Question #72?
• “How many people are in your parents’
household?”
– Six
4/9/2015
www.collegenowgc.org
16
Question seven
Jon’s parents died when he was 11. His
grandparents adopted him at age 12.
• Is Jon dependent or independent on the
FAFSA?
– Dependent, because he was adopted before
age 13.
4/9/2015
www.collegenowgc.org
17
Question eight
Elaine is living with a family friend because her
parents lost their jobs and are at risk of becoming
homeless. Her parents provide the friend with a
letter authorizing her to make health and education
decisions for Elaine.
• Is Elaine dependent or independent? Why?
– Dependent because not unaccompanied, not
homeless, not in legal guardianship.
– Only FAA can make determination of “at risk for
homelessness.”
4/9/2015
www.collegenowgc.org
18
Question nine and ten
Johnny is a 53-year old student at CCC. Marie is
his 19-year old daughter who lives at and attends
the University of Toledo. Johnny is on disability
and does not file taxes. How will each of them
answer the following question?
• “How many people in your household will be
college students in 2012-2013?”
# 9. Johnny’s FAFSA - Two
#10. Marie’s FAFSA - One
4/9/2015
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19
4/9/2015
www.collegenowgc.org
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