The author lists 10 myths about applying for financial aid and filling out the Free Application for Federal Student Aid or FAFSA. The author debunks the following 10 myths:
- The FAFSA is Only for Grant Money
- You Make too much Money
- You Only have to fill out the FAFSA once
- The FAFSA Uses Last Year’s Taxes
- There is Not Deadline
- 529 Accounts won’t Affect Eligibility
- Retirement Savings are a Factor
- The Value of your Home can Hurt You
- Stocks and Bonds Don’t Count
- Don’t bother Filling out the FAFSA
In the article Fred is talks about Retirement savings and how contributions to your 401(k), 403(b), and IRSs will show up as income on the federal side when doing your EFC calculation. Fred also explains that families in addition to the FAFSA may also have to complete other forms that many competitive schools require, such as the CSS Profile.
I believe everyone should fill out the FAFSA. In our blog library families can find several articles that help families understand the FAFSA and also how to complete the form. EFC PLUS website also has a video library that has several FAFSA and financial aid videos.