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FAFSA Strategies

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Senior Manager
Senior Manager
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Joined: 20 Jun 2010
Posts: 488
Concentration: Strategy, Economics
Schools: Chicago (Booth) - Class of 2014
Followers: 13

Kudos [?]: 76 [0], given: 27

Re: FAFSA Strategies [#permalink] New post 13 Feb 2012, 06:02
MikeBolton wrote:
And I don't think FAFSA interprets your current income as what you'll have throughout the program, necessarily - especially since they ask how many people in your household and how many will be attending school (you answer "1" for both of these and it's fairly obvious there will be no additional income for FT students). Since you have to reapply to FAFSA each year, things will equalize because the second year you will report an income close to $0 and will have spent most (or all) of your savings on the first year. So my interpretation is the first year you apply, FAFSA expects you to pretty much use all your savings (60% in your case), but the second year, you should be eligible for much more money (though after you max out the Stafford $20,500 it will have to come from Grad PLUS or private loans). Any members on the site that have finished an MBA and can comment on this thought?


Just to follow up...

I asked Booth's Financial Aid Director about FAFSA and the EFC this weekend. She said to ignore the EFC amount because it's irrelevant for graduate programs. Your EFC will not affect your ability to barrow the maximum amount.
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Senior Manager
Senior Manager
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Status: schools I listed were for the evening programs, not FT
Joined: 16 Aug 2011
Posts: 389
Location: United States (VA)
GMAT 1: 640 Q47 V32
GMAT 2: 640 Q43 V34
GMAT 3: 660 Q43 V38
GPA: 3.1
WE: Research (Other)
Followers: 3

Kudos [?]: 46 [0], given: 50

Re: FAFSA Strategies [#permalink] New post 13 Feb 2012, 09:44
MDF wrote:
Just to follow up...

I asked Booth's Financial Aid Director about FAFSA and the EFC this weekend. She said to ignore the EFC amount because it's irrelevant for graduate programs. Your EFC will not affect your ability to barrow the maximum amount.


Pretty much. It's a little different than college, where student's parents (most students are dependent) are expected to pay that EFC no matter what, and the PLUS loan for parents seems to be a loan where the parents have to pay it right away if I'm not mistaken.
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Joined: 28 Feb 2013
Posts: 2
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Kudos [?]: 0 [0], given: 0

FAFSA 2013 [#permalink] New post 28 Feb 2013, 07:37
Hi all,

I didn't see any recent FAFSA discussion and wanted to ask a couple questions for those who may know:

1) Are MBA students receiving any grants through FAFSA (not just loans)?
2) For those of us who saved money and have it in cash, is it legal to transfer it elsewhere before submitting the form? I understand it's an ethical "grey area," but really not any different than using cash to pay off a mortgage or spending the money.

Thanks!
1 KUDOS received
Current Student
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Joined: 12 Oct 2012
Posts: 11
Location: United States
Concentration: Strategy, Social Entrepreneurship
Schools: Merage '15 (M)
GMAT 1: 670 Q V0
WE: General Management (Education)
Followers: 0

Kudos [?]: 9 [1] , given: 8

Re: FAFSA 2013 [#permalink] New post 01 Mar 2013, 13:15
1
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mbaconsultinghopeful wrote:
Hi all,

I didn't see any recent FAFSA discussion and wanted to ask a couple questions for those who may know:

1) Are MBA students receiving any grants through FAFSA (not just loans)?
2) For those of us who saved money and have it in cash, is it legal to transfer it elsewhere before submitting the form? I understand it's an ethical "grey area," but really not any different than using cash to pay off a mortgage or spending the money.

Thanks!


Hi,

1. Federal grants are only applicable to undergrad students (such as pell seog), unfortunately grad students will only qualify for unsubsidized loans (6.8% fixed interest rate) and, if you can pass the credit check, PLUS loan(7.9% fixed interest rate).
2. None of the grad loans are need based so there is no need to transfer your money around. Sub loans were eliminated for grad students in 2012. The only possible factor may be in institutional scholarships, but that would vary by school.
Current Student
User avatar
Joined: 26 May 2010
Posts: 694
Location: United States (MA)
Concentration: Strategy
Schools: MIT Sloan - Class of 2015
WE: Consulting (Mutual Funds and Brokerage)
Followers: 16

Kudos [?]: 193 [0], given: 628

Premium Member
Re: FAFSA Strategies [#permalink] New post 01 Mar 2013, 13:51
maplesyrups wrote:
mbaconsultinghopeful wrote:
Hi all,

I didn't see any recent FAFSA discussion and wanted to ask a couple questions for those who may know:

1) Are MBA students receiving any grants through FAFSA (not just loans)?
2) For those of us who saved money and have it in cash, is it legal to transfer it elsewhere before submitting the form? I understand it's an ethical "grey area," but really not any different than using cash to pay off a mortgage or spending the money.

Thanks!


Hi,

1. Federal grants are only applicable to undergrad students (such as pell seog), unfortunately grad students will only qualify for unsubsidized loans (6.8% fixed interest rate) and, if you can pass the credit check, PLUS loan(7.9% fixed interest rate).
2. None of the grad loans are need based so there is no need to transfer your money around. Sub loans were eliminated for grad students in 2012. The only possible factor may be in institutional scholarships, but that would vary by school.

Within the last three weeks or so, I spoke to financial aid officers at both Sloan and Haas and both echoed what maplesyrups mentioned above.
Current Student
User avatar
Joined: 27 Jul 2007
Posts: 51
Location: United States (TX)
Concentration: Finance, Entrepreneurship
GPA: 2.42
Followers: 0

Kudos [?]: 6 [0], given: 7

Re: FAFSA Strategies [#permalink] New post 05 Mar 2013, 16:07
I have a burning question! I'm trying to figure out if I can get funds to pay for things like flights and different treks and other expenses, but after speaking with a FInancial Aid advisor at Maryland she said that the funds would only cover room board + tuition+books. I would like to know if that's true???
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Current Student
User avatar
Joined: 12 Oct 2012
Posts: 11
Location: United States
Concentration: Strategy, Social Entrepreneurship
Schools: Merage '15 (M)
GMAT 1: 670 Q V0
WE: General Management (Education)
Followers: 0

Kudos [?]: 9 [0], given: 8

Re: FAFSA Strategies [#permalink] New post 06 Mar 2013, 21:05
TRISTLW wrote:
I have a burning question! I'm trying to figure out if I can get funds to pay for things like flights and different treks and other expenses, but after speaking with a FInancial Aid advisor at Maryland she said that the funds would only cover room board + tuition+books. I would like to know if that's true???


You can borrow up to your school's calculated Cost of Attendance (COA), which can be found on the Financial Aid website. Of course if you end up finding rent that's cheaper than the average calculated COA, you can use the funds to pay for whatever else you need for living expenses.
Current Student
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Joined: 04 Oct 2011
Posts: 430
Concentration: Finance
GMAT 1: 700 Q44 V41
GMAT 2: 750 Q48 V46
GPA: 3.03
WE: Project Management (Military & Defense)
Followers: 11

Kudos [?]: 107 [0], given: 149

Premium Member
Re: FAFSA Strategies [#permalink] New post 07 Mar 2013, 10:00
maplesyrups wrote:
TRISTLW wrote:
I have a burning question! I'm trying to figure out if I can get funds to pay for things like flights and different treks and other expenses, but after speaking with a FInancial Aid advisor at Maryland she said that the funds would only cover room board + tuition+books. I would like to know if that's true???


You can borrow up to your school's calculated Cost of Attendance (COA), which can be found on the Financial Aid website. Of course if you end up finding rent that's cheaper than the average calculated COA, you can use the funds to pay for whatever else you need for living expenses.


In all likelihood though this is doubtful. Most schools estimated budgets are low already before you even add travel expenses in. Talking to friends in school and running the numbers myself for realistic expenses most schools underestimate by at least 10% how much it will really cost to attend school. This means you will not be able to borrow enough money to fund additional items like travel.

The exception to this is school related travel. Some schools offer international trips are part of a class. You spend a month or a few weeks in a foreign country doing work for an actual course. In this case you can ask the school to account for this course required travel in your budget and they will raise it a few thousand. However I don't think you can do that, drop the class and then spend the loan on personal travel. So this is an unusual exception.
Intern
Intern
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Joined: 01 Aug 2012
Posts: 3
Followers: 0

Kudos [?]: 7 [0], given: 0

Re: FAFSA Strategies [#permalink] New post 25 Apr 2013, 14:27
Hi All,

I am not seeing anything addressing a particular problem I am having with the student loan process so I am hoping someone on this thread may have some knowledge. My tuition and mandatory fees are going to be covered by my parents but I will need to take out loans the cover the rest. Most of the student loans I am seeing disburse to the school you are attending and then the office of financial aid hands over the amount of money that remains after tuition fees etc have been deducted. Having spoken with a Columbia Business School Financial Aid Officer briefly they indicated that they are obligated to subtract the tuition first and then disburse the loans even if the tuition has already been paid.

For tax reasons my parents have to pay the school tuition directly or else the money given to me or paid off on my loan is subject to a gift tax on them or income tax for me. Has anyone else had this type of situation and if so what was the solution? Were you able to get a private lender to disburse a student loan directly to you or work something out with the financial aid office at your school?

Thanks!
Current Student
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Joined: 17 Mar 2011
Posts: 453
Location: United States (DC)
Concentration: General Management, Technology
GMAT 1: 760 Q49 V45
GPA: 3.37
WE: Information Technology (Consulting)
Followers: 11

Kudos [?]: 153 [0], given: 5

Re: FAFSA Strategies [#permalink] New post 30 Apr 2013, 09:52
lilmisskate86 wrote:
Hi All,

I am not seeing anything addressing a particular problem I am having with the student loan process so I am hoping someone on this thread may have some knowledge. My tuition and mandatory fees are going to be covered by my parents but I will need to take out loans the cover the rest. Most of the student loans I am seeing disburse to the school you are attending and then the office of financial aid hands over the amount of money that remains after tuition fees etc have been deducted. Having spoken with a Columbia Business School Financial Aid Officer briefly they indicated that they are obligated to subtract the tuition first and then disburse the loans even if the tuition has already been paid.

For tax reasons my parents have to pay the school tuition directly or else the money given to me or paid off on my loan is subject to a gift tax on them or income tax for me. Has anyone else had this type of situation and if so what was the solution? Were you able to get a private lender to disburse a student loan directly to you or work something out with the financial aid office at your school?

Thanks!


That's an interesting predicament. I'm sure you can work it out with the school such that they can cash your parents check before applying the loan - just reach out to them and see what they say.
Current Student
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Joined: 18 Dec 2013
Posts: 35
Followers: 0

Kudos [?]: 4 [0], given: 2

Re: FAFSA Strategies [#permalink] New post 09 Jan 2014, 16:43
MDF wrote:
MikeBolton wrote:
And I don't think FAFSA interprets your current income as what you'll have throughout the program, necessarily - especially since they ask how many people in your household and how many will be attending school (you answer "1" for both of these and it's fairly obvious there will be no additional income for FT students). Since you have to reapply to FAFSA each year, things will equalize because the second year you will report an income close to $0 and will have spent most (or all) of your savings on the first year. So my interpretation is the first year you apply, FAFSA expects you to pretty much use all your savings (60% in your case), but the second year, you should be eligible for much more money (though after you max out the Stafford $20,500 it will have to come from Grad PLUS or private loans). Any members on the site that have finished an MBA and can comment on this thought?


Just to follow up...

I asked Booth's Financial Aid Director about FAFSA and the EFC this weekend. She said to ignore the EFC amount because it's irrelevant for graduate programs. Your EFC will not affect your ability to barrow the maximum amount.


Question about EFC. I understand that subsidized loans are no longer available for grad students. However, can schools put together favorable financial packages based off of the EFC amount disclosed on the FASFA report? In other words, would it still be worth it to try to reduce EFC (through Roth contributions, other ways) in the hope that schools will offer favorable financial aid?

This thread has been extremely helpful. Thank you.
Re: FAFSA Strategies   [#permalink] 09 Jan 2014, 16:43
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