Is it better to look dead broke on your FAFSA?

[wickerwoman]

I'm in the middle of applying for student loans (Yay!) and I can spin my situation as either dead broke or reasonably financially stable. Which one is better? Are you likely to get a higher loan amount if you seem to really need it or if you seem like you can pay it back straight away ? (Both are potentially true for me... I'm not trying to falsify the application.)

Does anybody know what the situation is like now? Are they still tightening up on the amounts a lot because of the credit crunch?

Any advice would be greatly appreciated.

[PassingFair]

1. Is this an ACORN sting?

I'm keeping my mouth SHUT!!


:evilgrin:

[wickerwoman]

2. Busted,

I'm a thirteen year old El Salvadorean girl applying for grad school ;-)

[AwakeAtLast]

3. I will never forget what one counselor told me

"You don't know how much you will make in the future. You could be in an accident tomorrow. Put down $0." :D She had a point.

[Chan790]

4. Dead broke is better as it lowers your Expected Family Contribution.

Also, you'll get a better FAFSA score (a lower EFC) if there are more than one person in college in your family so if you have kids or a SO who has ever thought about taking a few classes, if not pursuing a degree, now is the best time, they also have to file a FAFSA though...that's actually a huge number changer...my freshman year of college my EFC was 5500. Sophomore year when my brother started college, my EFC dropped to 1800 and his was 2000 and that included factoring in my mother getting a $10000 raise with a major promotion.

[wickerwoman]

5. Cool,

thanks so much for your response. :)

[HopeHoops]

6. Less is better, but don't lie.

If you are under like 25, your parents' tax return factors and assets have to be listed as well.

[wickerwoman]

7. Thanks,

I'm over 25. They give you the option of listing your parents assets but I think from this thread it's better not to in my situation. Cheers!

:hi:

[HopeHoops]

8. If you don't have to list them, don't.

Another point: bank balances.

You are required to list the balances in your accounts AS OF the filing date of the form.

Everyone needs some sort of safety level, but if you have debts (credit cards in particular), use as MUCH from your accounts as you are comfortable with and pay toward the debt. That's a good financial move in the first place, but it will also allow you to honestly report a bank balance that is lower than it would otherwise be.

Remember also, if you have savings bonds or a retirement fund, those have to be listed as assets.

[wickerwoman]

9. That's great advice, thanks!

I was just worried about looking so broke that I would become a credit risk and end up not getting the loans.

Thanks again!

[quakerboy]

12. A) loans will use credit score, not your FAFSA

FAFSA will merely determine what type of loans you will have to get. Less is better, as you may have access to some "free" money(grants), and even if not, you are more likely to be eligible for Stafford loans, preferably the subsidized. Which are far far superior to the private loans.

How much of a loan do you expect to need, if I may ask? The more it is, the more likely you are to need a private loan. In the private loan arena, its a bank loaning to you. And they will go by your credit scores, not by the FAFSA. You don't even need a FAFSA to get private educational loans.

[Odin2005]

11. The under-25 part screwed me over big time!

When my mom and stepdad got married we were horrified to discover that my stepdad's income counted against me and caused me to lose my Pell Grants :grr: I;ve been saving up for tuition and going part-time since then. Recent events (Sadly, my stepdad's death from pancreatitis this spring :cry: ) have probably made me eligible for Pell Grants again so I am going to be applying for FAFSA again next spring.

[Odin2005]

10. Dead Broke. May get you Pell Grants.