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# When to apply for financial aid.

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When to apply for financial aid. [#permalink]  12 Jan 2007, 03:48
What is the appropriate time to file the FAFSA? Should you forward it to all schools, or wait and just forward it to schools you are admitted to.

In the bad old days, when I applied to law school, I remember submitting a disk with FAFSA data along with the application (by mail of course), but I didn't see any schools request this. Some specifically state to file after tax returns for last year are completed - but do you then wait for a decision before sending it?
Senior Manager
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good question pelihu, I am interested to hear more about this as well. It was my understanding that first you wait to get admitted, then you apply for FAFSA and that the deadline for applying is pretty far out (early summer?).
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I think the case is a little bit different for Internationals (which is the case I've had the chance to discuss with a few adcoms), but I agree that you should wait for admission before applying.
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Re: When to apply for financial aid. [#permalink]  13 Jan 2007, 18:45
Pelihu, can you please enlighten me how FAFSA works. I became a US resident few years ago and am now eligible to apply. What are the advantages of filing for FAFSA ?

pelihu wrote:
What is the appropriate time to file the FAFSA? Should you forward it to all schools, or wait and just forward it to schools you are admitted to.

In the bad old days, when I applied to law school, I remember submitting a disk with FAFSA data along with the application (by mail of course), but I didn't see any schools request this. Some specifically state to file after tax returns for last year are completed - but do you then wait for a decision before sending it?
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Re: When to apply for financial aid. [#permalink]  14 Jan 2007, 00:09
lhotseface wrote:
Pelihu, can you please enlighten me how FAFSA works. I became a US resident few years ago and am now eligible to apply. What are the advantages of filing for FAFSA ?

pelihu wrote:
What is the appropriate time to file the FAFSA? Should you forward it to all schools, or wait and just forward it to schools you are admitted to.

In the bad old days, when I applied to law school, I remember submitting a disk with FAFSA data along with the application (by mail of course), but I didn't see any schools request this. Some specifically state to file after tax returns for last year are completed - but do you then wait for a decision before sending it?

The FAFSA is used to apply for federal aid. Federal loans generally have lower interest rates, and some can be subsidized which means interest does not accrue while you are in school. It is also used to quality for federal grants, though these are generally not very substantial. Many schools also use the information from the FAFSA to determine eligibility for other forms of financial aid (work-study, need based grants from schools, etc).
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Re: When to apply for financial aid. [#permalink]  14 Jan 2007, 08:05
pelihu wrote:
lhotseface wrote:
Pelihu, can you please enlighten me how FAFSA works. I became a US resident few years ago and am now eligible to apply. What are the advantages of filing for FAFSA ?

pelihu wrote:
What is the appropriate time to file the FAFSA? Should you forward it to all schools, or wait and just forward it to schools you are admitted to.

In the bad old days, when I applied to law school, I remember submitting a disk with FAFSA data along with the application (by mail of course), but I didn't see any schools request this. Some specifically state to file after tax returns for last year are completed - but do you then wait for a decision before sending it?

The FAFSA is used to apply for federal aid. Federal loans generally have lower interest rates, and some can be subsidized which means interest does not accrue while you are in school. It is also used to quality for federal grants, though these are generally not very substantial. Many schools also use the information from the FAFSA to determine eligibility for other forms of financial aid (work-study, need based grants from schools, etc).

So... what if I had $100,000 to pay for grad school already? Could I just take out an interest free loan and put the fasfa money into a 5% CD - and make like$10K during my two years of interest free?
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Re: When to apply for financial aid. [#permalink]  14 Jan 2007, 08:26
I would put my 100K in a CD and use the FAFSA money to pay the loans. I guess the FAFSA amount can only be used to pay the Bursar's office. It doesn't make sense for the feds to allow students to use the cash any other way. It would end up as beer fund for most undergrads.

rhyme wrote:
pelihu wrote:
lhotseface wrote:
Pelihu, can you please enlighten me how FAFSA works. I became a US resident few years ago and am now eligible to apply. What are the advantages of filing for FAFSA ?

pelihu wrote:
What is the appropriate time to file the FAFSA? Should you forward it to all schools, or wait and just forward it to schools you are admitted to.

In the bad old days, when I applied to law school, I remember submitting a disk with FAFSA data along with the application (by mail of course), but I didn't see any schools request this. Some specifically state to file after tax returns for last year are completed - but do you then wait for a decision before sending it?

The FAFSA is used to apply for federal aid. Federal loans generally have lower interest rates, and some can be subsidized which means interest does not accrue while you are in school. It is also used to quality for federal grants, though these are generally not very substantial. Many schools also use the information from the FAFSA to determine eligibility for other forms of financial aid (work-study, need based grants from schools, etc).

So... what if I had $100,000 to pay for grad school already? Could I just take out an interest free loan and put the fasfa money into a 5% CD - and make like$10K during my two years of interest free?
[/quote]
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Re: When to apply for financial aid. [#permalink]  14 Jan 2007, 09:33
lhotseface wrote:
I would put my 100K in a CD and use the FAFSA money to pay the loans. I guess the FAFSA amount can only be used to pay the Bursar's office. It doesn't make sense for the feds to allow students to use the cash any other way. It would end up as beer fund for most undergrads.

Yea this is what I meant - I mean, money is fungible - it doesnt matter. The point I was making was that if I can get $100K from FAFSA, and I have a two year no-interest period - I could take the$100K I have and put it in ING or similar (~5%) and make $10,000 in two years - which isn't much, but its free money. There has to be a catch.... Seems too simple. Can you even borrow$100K?
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Ah here's the catch:

http://www.ed.gov/offices/OSFAP/DirectLoan/faq.html

I can't borrow more than \$18,000....

Then again:

With a PLUS loan, a graduate/professional student or the parent of a dependent student can borrow up to the cost of the student's education minus other financial aid the student receives.

So I'm a bit confused.
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I don't think you are guaranteed to get financial aid. And I believe that you will need to disclose your financisal situation when you apply for FAFSA. The more money you have, the less of a loan/grant amount you'll get. So rhyme, with 100k you may not be eligible for much or any aid.
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EconGirl wrote:
I don't think you are guaranteed to get financial aid. And I believe that you will need to disclose your financisal situation when you apply for FAFSA. The more money you have, the less of a loan/grant amount you'll get. So rhyme, with 100k you may not be eligible for much or any aid.

That makes sense.
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There is a max of 18,500 for the subsidized loan and then you can get a unsubsidized loan (which means your interest accrus the minute it is disbursed to you) and you can get the remaining part of ur college tuition and expenses that way. The unsbusidized is a new loan called the federal GRAD plus loan and it has i believe a 8% interest rate... hope this helps also both of them u start paying after u graduate i believe but jst that 8% will accrue as ur in college for anything over 18,500 a year... hope this helps
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AshikaP wrote:
There is a max of 18,500 for the subsidized loan and then you can get a unsubsidized loan (which means your interest accrus the minute it is disbursed to you) and you can get the remaining part of ur college tuition and expenses that way. The unsbusidized is a new loan called the federal GRAD plus loan and it has i believe a 8% interest rate... hope this helps also both of them u start paying after u graduate i believe but jst that 8% will accrue as ur in college for anything over 18,500 a year... hope this helps

well there goes the arbritrage opportunity
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