cmns18 wrote:
2 questions
First quite possibly a stupid question that will cause my B-schol admit offers to be rescinded. I haven't put in my FAFSA. Is it too late, did I miss out, did this affect my chance at a scholarship?(as in the school didn't have any financial info on me). Just wondering, any thoughts would be appreciated.
Good question, and I bet the farm you're not alone. (Fess up -- how many of you have not done this???) Get that FAFSA in. From what I can tell, most schools offer merit scholarships and NOT need-based scholarships. If this is the case at your school, the FAFSA (or lack thereof) will have no effect on potential scholarships. If the school DOES offer need-based scholarships, then it's quite possible that that FAFSA does play a role. I don't know.
The timeliness of your FAFSA may affect some types of aid. For example, Perkins loans (5% APR, subsidized, a good deal) are doled out according to need, and schools generally don't have enough to give them to everyone who qualifies. Getting your FAFSA in earlier will keep you in the running before these run out.
cmns18 wrote:
Second, although I work in a non-profit, my wife and I are quite frugal and have saved some money. The question is if I should use my savings for school...or should I save most of it in a conservative mutual fund, etc so I'm not broke after biz school and I can maybe put some money down on a house/condo. What do you think?
If you have cash savings on hand, those will be counted as assets when your EFC (estimated family contribution) is calculated (after you put in your FAFSA). This isn't the end of the world, but it's something to be aware of. Deciding whether to put cash toward use X or Y isn't terribly easy. There are always pros and cons to any financial decision, and you need to decide based on your own goals and comfort levels.
One way to look at it is like this: let's say you put that savings into a mutual fund at 5% and then end up getting a private loan at 9%. Hmm, you're going to pay more on that loan while you're in school than you're going to make on the interest on the mutual fund. (Not to mention the life of the 9% loan.)
On the other hand, it's never a good idea to be completely without savings, in case an emergency happens. This is particularly true for those who struggle with credit card use -- using those things again during an emergency can be the first step down that slippery slope. And then if you really want to buy a home right out of b-school, you'll certainly want to have a down payment of some kind.
As you can see, I tend to be fairly conservative about savings (not investing, but about saving). This probably stems from the people I work with, most of whom tend to have low to moderate incomes and have never managed to put money aside. Any small upset, like a sudden car repair, becomes a major financial catastrophe. So take what I have to say with a major grain of salt.
Also, keep in mind that there are probably many variables in your situation that I don't know about. I just threw some generalities at you.