FAFSA Deadline is June 30: Should You Fill One Out?

June 2, 2021
FAFSA Deadline is June 30: Should You Fill One Out?

With the Free Application for Federal Student Aid (FAFSA®) due at the end of the month, you may wonder as a high-income earner if you need to fill one out for your child before they start college in the fall.

Income Only One Factor for Aid

The answer is generally yes. One of the big myths is that high-income families won’t qualify for financial aid because their income is too high. That may or may not be true. Keep in mind that income is only one of the factors that determine a family’s eligibility for financial aid. And there isn’t an income cutoff limit for the FAFSA.

Changes Coming to FAFSA Form

In addition, not only does the form qualify your student for federal student aid, states and colleges use FAFSA information to award grants, scholarships and loans. Keep in mind that as a result of a funding bill enacted in 2021, there will be changes to the FAFSA. The new provisions will show up on the 2022 FAFSA and take effect for the 2023- 2024 academic year.

Fewer Questions to Answer

On the upside, the new provisions simplify the application, which has been notorious for the 100+ questions families have been required to answer. The new application will have just around 36 questions to make it less daunting, especially since you must complete it each year until your student graduates.

Changes to Who Fills Out Application

In addition, the new legislation will require the parent who provides the most financial support to complete the FAFSA instead of the custodial parent (defined as the parent with whom the child lives for most of the year ending the day the FAFSA is filed). If the support provided is equal (50/50), then it defaults to the parent or household with the highest adjusted gross income.

Discount for Multiple Children to Be Eliminated

On the downside, the legislation eliminates the discount for multiple children in college, which will reduce financial eligibility for these families.

Listen to Our Podcast

For more on the topic, check out our podcast featuring Cozy Whittman, who discusses tips for filling out the FAFSA and other best practices on financing college. Cozy is with College Inside Track, a group of independent college counselors who help families navigate the college search including offering financial aid and student loan advice.

Source:

FAFSA Application Changes Are Coming

This article is limited to the dissemination of general information pertaining to Mariner Wealth Advisors’ investment advisory services and general economic market conditions. The views expressed are for commentary purposes only and do not take into account any individual personal, financial, or tax considerations. As such, the information contained herein is not intended to be personal legal, investment or tax advice or a solicitation to buy or sell any security or engage in a particular investment strategy. Nothing herein should be relied upon as such, and there is no guarantee that any claims made will come to pass. Any opinions and forecasts contained herein are based on information and sources of information deemed to be reliable, but Mariner Wealth Advisors does not warrant the accuracy of the information that this opinion and forecast is based upon. You should note that the materials are provided “as is” without any express or implied warranties. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

Mariner Wealth Advisors (“MWA”), is an SEC registered investment adviser with its principal place of business in the State of Kansas. Registration of an investment adviser does not imply a certain level of skill or training. MWA is in compliance with the current notice filing requirements imposed upon registered investment advisers by those states in which MWA maintains clients. MWA may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements. Any subsequent, direct communication by MWA with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For additional information about MWA, including fees and services, please contact MWA or refer to the Investment Adviser Public Disclosure website. Please read the disclosure statement carefully before you invest or send money.

Contact Us