College Planning

Admissions Applications

 Some congratulations are in order if you’re helping a high school senior through the college application process: you’ve made it this far.

There have been college visits, checklists, discussions, applications, essays, and life sprinkled in the mix over the last year as college admissions activities and “to-do” lists have ramped up, especially this fall.

While the upcoming decision time can be emotionally challenging – given that choosing a college is one of the biggest financial decisions many families will make – this busy, stressful fall phase of active work is almost done!

As many schools have an early action or early decision date of November 1 or November 15, your student may have already submitted many of their applications. If this is the case, it’s a good idea to ride that momentum and finish up with any pending applications soon.

Encourage your student to complete their remaining applications on their school list.

Even if a college has a rolling deadline, or an early 2024 deadline, it is best to apply as soon as possible.

While the expected notification dates of acceptance vary from school to school, it’s good to know the following: the earlier your student applies, the sooner admissions staff likely will read the application and send out notification. College financial aid staff typically review applications for financial aid after acceptance.

The FAFSA: Free Application for Federal Student Aid

 While the Department of Education has yet to release the opening date of the FAFSA application for the 2024-2025 academic year, it is still expected to open in December.

The fact that the FAFSA form is opening later for this year only, due to major changes in the form (it usually opens on October 1 for the following fall) is more reason to complete it as soon as it is released.

Schools will have a shorter timeline to review applications and prepare offer letters.

It is my recommendation that every student complete the FAFSA form.

Even if you think your student will not be eligible for need-based aid (free grants and scholarships), you and your student should complete the FAFSA form. Some schools will offer a free grant or scholarship even if your student doesn’t qualify for need-based funds, just because the form was completed.

There are also some schools that require completion for merit scholarships (awarded by admissions based on the student’s admissions application).

How to Get a Jump on Completing the FAFSA Form

Create your FSA ID

• Create your FSA ID here: Create FSA ID
• Get updates and FAFSA information here: Federal Student Aid
• Both student and parent will need to create an ID
• You can take these steps now and keep credentials in a safe place until the FAFSA opens

Gather required information to reference when completing the FAFSA, including:

• 2022 Federal Tax Return – in most cases, you will be required to give consent to the IRS and use the (FTI) Federal Tax Information-Module. Eligibility will not be calculated without consent. This is consent for tax information, NOT to contribute to college costs.
• 2022 W-2’s and 1099’s
• Account Statements – Checking and savings accounts, brokerage accounts
• Child support received – if applicable
• Social Security #’s – be sure to double check these- it is a common mistake to transpose numbers or use the wrong one

For more information on the new 2024-2025 FAFSA changes and Early Decision, see my October blog- College Application Marathon: Fall’s Final Sprint

Once your student finishes their applications, hopefully your whole family will be able to find time to relax and enjoy the holidays!

And, as a reminder, be sure to check your email regularly for notifications from the schools.

DC

As October arrives, your high school senior is likely deep into the college application process, and now the college application marathon turns into a final finishing sprint.

This time in your student’s life can seem pressure-packed and overwhelming.

Together you’re trying to find the perfect college fit that will allow them to pursue their educational and extracurricular goals in a way that can be supported by your family’s finances.

Keeping on top of the application process, including deadlines, may relieve some of that pressure. Below are some suggestions that you might find helpful.

Refine the List

Now is the time to refine your student’s school list. Take a realistic look at the options. In addition to that school at the top of your student’s wish list, do you have some options that are likely to be more affordable, and at least one or two where your student is “likely” to be accepted?

Know the Options

The college admissions “game” has gotten more complex and is defined by detailed applications, multiple essays, different application types and different deadlines for each school! Early Accept, Early Accept II, Early Decision, Early Action, and additional points such as “restricted” are possible options for applicants

Be sure to know the options and deadlines for each school on your student’s list and make an informed and timely decision on how your student will apply.

It is a good idea to consider the Early Action applications which are not binding, (when you do not have to commit to attending if you are accepted). Applying early will usually result in an earlier notification to the student. If you know the student will apply to the school, why not get the application in as soon as possible, and get notified early of the decision?

Be sure to work with your student on getting the applications done not only by the deadline, but a little ahead, so you all can be a little less stressed when completing them.

Words of Caution on Early Decision Applications

You should be well-informed about electing Early Decision because:

• It is a binding agreement with the college or university. Most often, you have no idea if the student will receive any financial aid or a merit scholarship before you commit to attending the school if the student is admitted. It usually limits the student to other early applications as well.
• Not every school keeps their Net Price Calculator (NPC) up to date and some do not include merit scholarships in the estimate, even if they do offer them. At the very least, you should complete the NPC on the school’s website to get an idea of eligibility.
• You will need to be prepared to pay whatever the cost is to you. It’s possible that you won’t be offered aid and will have to pay full price.

Although many schools state a student’s eligibility does not depend on when they apply, most schools do not have unlimited funds. Getting applications done early for admissions and financial aid will give your student the best opportunity for maximizing their eligibility for scholarships and aid.

The College Essay

Hopefully your student has worked over the summer on their college essay.

Understand what your student’s best positioning is and be sure to have your student weave a good narrative into their essays that accompany the application.

Many schools have a holistic approach to the application review, and this is an area where your student can really shine. Admissions representatives love to hear stories that bring a student’s application to life.

Test Scores

Decide on whether to submit the SAT / ACT test scores. Many schools are still test optional. If you and your student do not feel the scores are indicative of their ability, consider not submitting if scores are not required and if your student is very strong in other areas such as GPA, involvement in groups and activity, and other accomplishments.

If you have questions specific to a school, do not be shy about calling the school and reaching out. They have an enrollment goal to achieve, and admissions folks are generally helpful in guiding you along the way to submitting your application.

Final Notes

Take it easy on yourself and your student during this time. Try to find ways to keep calm, take breaks, and remember: the ultimate goal is to get them off to college next year, and they will make it!

In my experience when working with families, most often the student ends up where they were meant to be in the end.

If you need some hourly college planning advice, you may contact Donna on our website.

While the FAFSA release date is still expected to be December, it has not yet been announced. You can register for an FSA ID and complete the FAFSA here when the application opens.

We will post updates on the FAFSA release date when they are available.

-DC

Roughly 18 million college students apply for financial aid each year through the Free Application for Federal Student Aid. The U.S. Department of Education develops the FAFSA form and disburses aid to students at 5,600 colleges and career schools each year.

The FAFSA is also used by colleges and universities to determine eligibility for their own free grants and scholarships.

Due to the implementation of extensive changes based on the FAFSA Simplification Act, the Department of Education delayed the usual October 1 launch date to December this year for the 2024-2025 application. The exact date has not yet been released.

Changes to the form began over the last three years and some of the more impactful changes will occur on the 2024-2025 FAFSA form.

What this means for students who are applying now to college for admission for the fall of 2024 or who are current college students, is that their aid eligibility may be affected. Some changes are expected to help students, and some are expected to have a negative impact on eligibility.

It also means that schools which have historically released earlier financial aid offer letters to freshmen applicants, will likely be scrambling to review the FAFSA applications once the form opens and may have to delay their offer notifications to freshman.

Some of the FAFSA changes that may have a negative impact on student eligibility are:

• The number of family members in college is no longer a factor in the need analysis. The “sibling discount”, which could make a student eligible for more aid, is going away. However, based on comments from administration officials from a sampling of schools that use the CSS Profile, many colleges likely will continue to give some form of sibling discount.
• The net worth of a business is no longer limited to those with more than 100 full-time employees. Applicants must report the net worth of all businesses.

Some of the FAFSA changes that may have a positive impact on student eligibility or be a benefit to students are:

• The FAFSA will have significantly fewer questions.
• The FAFSA EFC (Expected Family Contribution) name has changed to FAFSA SAI (Student Aid Index) which helps avoid confusion as this number is for determining eligibility and is not associated with what a family or student “is expected” to pay.
• Some untaxed income items have been eliminated such as: payments made to tax-deferred pension and retirement plans that are paid directly or withheld from earnings; money received by or paid for on behalf of the student; and veterans’ noneducational benefits.
• For dependent students, education savings accounts will only be counted as a parent asset if the account is designated for the student. Previously, if a parent had education savings accounts for other children, the value of those were also required to be counted.
• Students may now list up to twenty colleges on the form, rather than the previous ten.

One important outcome of the FAFSA change is unclear: how schools will adjust aid (or not) for current students. Students and families will have to wait and see how the new FAFSA, and their school’s policy changes, will affect their financial aid for their remaining college years.

One Final Note about the FAFSA Form: every student should complete the FAFSA form. Free money can be left behind if a student does not submit the form, especially in year one.

Some colleges require the form to be submitted to qualify for a merit scholarship, even though it is not need-based. Also, some colleges award additional grants in the form of free money, just for completing and submitting the FAFSA, regardless of eligibility.

You can register here for an FSA ID and use the same link to complete the FAFSA when the application opens.

Parents of students applying for admission for Fall of 2024 can use the Net Price Calculators on their schools’ websites to get an idea of eligibility before the FAFSA becomes available.

You can also receive a College Money Report (for three schools on your list) by visiting the Resources page on the Moore Financial Advisors website.

We will post updates on the FAFSA release date when they are available.

The US Department of Education’s COVID 19 relief for Federal Student Loans is ending soon and roughly 1 in 8 Americans will have to restart their loan payments as soon as October.

Interest resumes on September 1, 2023, and payments will be due starting in October 2023.

If you are a parent of a young adult who graduated during the past three years of the COVID 19 loan repayment pause, these students may have never been required to make a payment on their Federal Student Loans until now.

If you have a Federal Student or Parent Plus Loan, or if you are the parent of a recent college graduate, here are ways to prepare for the loan repayment start up:

This is a good time to check in with young adults and discuss their loans. Don’t assume they are aware of the repayment start and what to do.

Be sure to let them know that they must watch for communications from their servicer for a bill. You can be a resource to help them remain in good standing and on track to pay off their loans on time.

Anyone with outstanding Federal Student loans, which include Federal Direct Stafford Student Loans, Federal Direct Graduate Student Loans, Graduate Plus Loans, and Federal Parent Plus Loans, should prepare for repayment (unless you kept up payments during the pause).

Below are steps you should take in August and September.

By logging in to your FSA (Federal Student Aid) dashboard with your FSA ID and password, you will have access to the information you need.

Here are some specifics:

• Log on to Federal Student Aid, and update your contact information, including mailing address, email, phone; you can also update your information with you loan servicer using this link
• Confirm the status of your loans, total amount you owe, and the current servicer (government agency handling your repayment)
• If you are repaying Student Loans for the first time, here is a step-by-step plan with links to be sure you are set up for your first payment: FSA: Repaying Student Loans for the First Time

Watch for communications regarding your loan: your bill, payment amount, and due date should arrive at least 21 days before your due date.

A smart way to save on interest is if you set up auto-pay so you will save 0.25% on your interest rate.

If you were on an income-based repayment plan, or want to explore more affordable plans information is here: FSA Income-Driven Repayment Plans

Important Note: If you choose an income-driven repayment plan, this will extend your repayment time, and interest and total amount to be repaid.

More information on the repayment start can be found at: Federal Student Aid-Managing Loan Repayment

Here you can find more information on:

• Understanding Student Loan Repayment
• Public Service Loan Forgiveness

 If you have questions about the Federal Student Loan repayment restart, or would like to discuss your situation with regard to paying for college, Donna is available to help.

If you are a parent of a young adult who will soon head off to college for the first time, you have likely had an emotional and hectic year. Making a commitment to a school for your student’s education is a big step.

Congratulations on navigating a complex process and reaching one of life’s major milestones!

One of the more important communications from your student’s school, arriving soon, will be the first semester bill for tuition, and room and board. Any merit scholarships or aid awarded to your student should show as a pending credit on the bill.

Schools generally send two bills per year, and payment due dates are usually around the beginning of August for fall semester and December for spring semester.

Early summer is an appropriate time to review your college financial plan, and a good place to start is by considering all available resources, including:

• 529 plan balances and other savings
• Gifts from relatives
• Private scholarships awarded to your student
• Flexibility in your budget for making monthly cash payments
• Loans, including Federal student loans and private loans

If loans will be part of your family’s financing picture, it’s wise to consider using the Federal Direct Stafford Loan – all students are eligible.

Loans maximums are set by the U.S. Department of Education, and they range from $5,500 for the freshman year, to $7,500 for the senior year.

The federal student loan benefits include:

• fixed interest rate (and likely lower than a private loan)
• no credit and no co-signer needed
• multiple repayment and forbearance options during repayment
• six-month grace period after graduation (or continued deferment if the student is in a qualifying, half-time graduate program)
• Public Service Loan Forgiveness programs

Of course, it is a personal and family decision whether or not your student will borrow to help pay for college.

For access to Federal loans, you and your student must complete the Free Application for Federal Student Aid (FAFSA).

Even if you don’t want your student to have debt after graduation, Federal student loans are still worth considering, because:

1. taking the federal loan will help your student establish a payment history and a credit score
2. you’ll have the option to pay off the loan at graduation, or sooner
3. if you have the need to appeal for financial aid while your student is an undergraduate (due to a job loss or other unfortunate circumstance), the college’s financial aid officers are likely to look more favorably on your situation if your student has previously accepted the ‘self-help’ loan

For more information on Federal student loans, yearly loan limits, interest and payment calculators, and Public Service Loan Forgiveness, check out:

• Federal Student Aid
• Public Service Loan Forgiveness