Also, every February, the National Association of Student Financial Aid Administrators (NASFAA) operates free workshops called College Goal Sunday. Visit its Web site for more information.

The most common errors made on the FAFSA are avoidable ones. Some include:

• Forgetting to enter a school code, which results in the FAFSA never getting to the college/university of choice

• Mismatching the name and Social Security number on the form

• Transposing digits of Social Security numbers

• Forgetting to sign the form

• Leaving fields blank – if the question is not applicable, enter zero

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Tips: If You Have a Few Years To Go

• Save In Your Name, Not Your Child’s: Child assets are assessed at a rate of 20%. Parent assets are assessed on a bracketed system, with a top rate of 5.64%

• Delay Some Income: Ask your boss to delay your bonus, or if you’re self-employed, ask clients to delay paying you until the next tax year (it will count in that year). Also consider avoiding capital gains in the year before you apply (unless you can offset them with capital losses).

• Pay Down Debt: If you have extra cash and you want to lower your asset base, consider paying down your debt, including home equity loans.

• Divorce Considerations: Your student may want to live with the lower income parent for the year before you fill out the FAFSA. Only this parent’s information will go on the form.

• Write a Note: If if you received an unusually high one-time bonus or if you’re facing high out-of-pocket medical costs, say so with an attachment to your form or submit a separate letter to financial aid officers. Provide proof of your situation and the aid office may make a different decision for you.

Karin Price Mueller is an award-winning writer who specializes in personal finance. She writes the Money 911 multimedia feature for MSN Money and she's a columnist for The Star-Ledger, New Jersey's largest newspaper. For more of her work, please visit www.KarinPriceMueller.com.

 

 

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