Comprehensive US Scholarship/Financial Aid Discussion

I just funded my Roth IRA for 2007, taking a big chunk out of my bank account, so it sounds like it might be better for you to apply after the marriage. But I could be wrong, so that's why this thread is here for discussion.

well, the FAFSA looks at three main things:

1. Your annual income (your 1040 filed income)
2. Your investments (mutual funds, stocks, investment real estate)
3. Your most recent bank statements

They do not look at your retirement funds, Roth IRA, 401K, or primary household property.

I just funded my Roth IRA for 2007, taking a big chunk out of my bank account, so it sounds like it might be better for you to apply after the marriage. But I could be wrong, so that's why this thread is here for discussion.

Your eligibility for subsidized (i.e. no interest while in school) Stafford loans depends on your EFC (expected family contribution) number, which the FAFSA calculates based on a lot of variables. As such, I'm not sure if it's possible to predict how much cash you can have in your savings account and still be eligible for subsidized Stafford loans. Unsubsidized Stafford loans (6.8% fixed rate, but most lenders offer 1.0 % to 1.25% less in discounts) are not based on financial need and can be (and should be, if I'm not mistaken) taken by everyone before applying for Federal PLUS loans or private education loans, which charge higher/variable interests.

However, some schools have their own loan programs that charge only around 5% interest, but these are offered on the basis of financial need.

And you can send your FAFSA to multiple schools.

disclaimer: This is all based on my experience with the FAFSA and financial aid in general while a college student. It obviously applies only to US applicants.