Navigating the New FAFSA – What You Need to Know: What Parents and Students Need to Know about FAFSA in 2024: In this episode of Level Up With Lee, Lee Baker interviews Peg Keough, Director of Education for College Aid Pro, about the complexities of college planning and the recent changes to the FAFSA process. Peg shares her personal experience as a parent of twins and offers advice on when to start planning for college, the benefits of college savings accounts, and how to navigate the financial aid process. She also emphasizes the importance of setting expectations with your child and relieving stress by being proactive in the college planning journey.
What is FAFSA?
The Free Application for Federal Student Aid (FAFSA) is a form completed by current and prospective college students in the United States to determine their eligibility for student financial aid. The U.S. Department of Education uses the information provided on the FAFSA to assess a student’s eligibility for federal grants, loans, and work-study programs, as well as many state and institutional aid programs. The FAFSA takes into account various factors such as the student’s family income and assets, household size, number of family members attending college, and other financial information. Based on this information, the Department of Education calculates the Expected Family Contribution (EFC), which is the amount the student and their family are expected to contribute toward the cost of attendance at a college or university. Completing the FAFSA is typically a prerequisite for receiving any type of federal financial aid, as well as many state and institutional aid programs. The application is available online and must be completed each year that a student wishes to receive financial aid for college. It is important for students to submit the FAFSA as early as possible, as some types of financial aid are awarded on a first-come, first-served basis.
Takeaways from the video episode Level Up With Lee – Navigating the New FAFSA: What You Need to Know
Start the college planning process early, ideally by the middle of sophomore year in high school, to avoid unnecessary stress and make informed financial decisions.
The recent changes to the FAFSA process have created additional challenges for families, but it is important to submit the FAFSA and communicate with colleges to ensure your financial aid package is processed correctly. Consider the advantages and disadvantages of college savings accounts (529 plans) based on your child’s educational plans and potential financial aid eligibility.
If you find yourself in the senior year of high school with limited college savings, explore options such as cash flow management, lifestyle adjustments, outside help, and community college transfer programs.
Having open and honest conversations with your child about college expectations and financial limitations can help set realistic goals and relieve stress during the college planning process.
Watch this video about navigating the new FAFSA. Be sure to check out more free episodes of Level Up With Lee at this link: https://www.finstream.tv/videos/level-up-with-lee/