Last visit was: 03 May 2026, 04:23 It is currently 03 May 2026, 04:23
Home
Messages
Tests
Schools
Events
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
User avatar
MDF
User avatar
Joined: 20 Jun 2010
Last visit: 25 Nov 2015
Posts: 487
Own Kudos:
83
Given Kudos: 27
Concentration: Strategy, Economics
Schools: Chicago (Booth) - Class of 2014
Schools: Chicago (Booth) - Class of 2014
Posts: 487
Kudos: 83
FAFSA Strategies 13 Feb 2012, 07:02
Kudos
Add Kudos
Bookmarks
Bookmark this Post
MikeBolton

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?
Show more

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.
avatar
novanative
avatar
Joined: 16 Aug 2011
Last visit: 14 Apr 2013
Posts: 378
Own Kudos:
55
Given Kudos: 50
Status:schools I listed were for the evening programs, not FT
Location: United States (VA)
Schools: McDonough '14 (WL) Smith (A)
GMAT 1: 640 Q43 V34
GMAT 2: 660 Q43 V38
GPA: 3.1
WE:Research (Other)
Schools: McDonough '14 (WL) Smith (A)
GMAT 2: 660 Q43 V38
Posts: 378
Kudos: 55
FAFSA Strategies 13 Feb 2012, 10:44
Kudos
Add Kudos
Bookmarks
Bookmark this Post
MDF
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.
Show more

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.
avatar
mbaconsultinghopeful
avatar
Joined: 28 Feb 2013
Last visit: 02 Apr 2013
Posts: 1
Posts: 1
Kudos: 0
FAFSA Strategies 28 Feb 2013, 08:37
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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!
User avatar
maplesyrups
User avatar
Joined: 12 Oct 2012
Last visit: 27 Apr 2016
Posts: 11
Own Kudos:
9
 [1]
Given Kudos: 8
Location: United States
Concentration: Strategy, Social Entrepreneurship
Schools: Merage '15 (M)
WE:General Management (Education)
Schools: Merage '15 (M)
Posts: 11
Kudos: 9
 [1]
FAFSA Strategies 01 Mar 2013, 14:15
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
mbaconsultinghopeful
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!
Show more

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.
User avatar
kingfalcon
User avatar
Joined: 26 May 2010
Last visit: 27 Oct 2017
Posts: 719
Own Kudos:
215
Given Kudos: 642
Location: United States (MA)
Concentration: Strategy
Schools: MIT Sloan - Class of 2015
WE:Consulting (Mutual Funds and Brokerage)
Schools: MIT Sloan - Class of 2015
Posts: 719
Kudos: 215
FAFSA Strategies 01 Mar 2013, 14:51
Kudos
Add Kudos
Bookmarks
Bookmark this Post
maplesyrups
mbaconsultinghopeful
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.
Show more
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.
User avatar
TRISTLW
User avatar
Joined: 27 Jul 2007
Last visit: 03 Jun 2021
Posts: 50
Own Kudos:
7
Given Kudos: 7
Location: United States (TX)
Concentration: Finance, Entrepreneurship
Schools: Johnson '15 (D) Babson '15 (D) Smith '15 (M) Goizueta '15 (I) Terry '15 (D)
GPA: 2.42
Schools: Johnson '15 (D) Babson '15 (D) Smith '15 (M) Goizueta '15 (I) Terry '15 (D)
Posts: 50
Kudos: 7
FAFSA Strategies 05 Mar 2013, 17:07
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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???
User avatar
maplesyrups
User avatar
Joined: 12 Oct 2012
Last visit: 27 Apr 2016
Posts: 11
Own Kudos:
9
Given Kudos: 8
Location: United States
Concentration: Strategy, Social Entrepreneurship
Schools: Merage '15 (M)
WE:General Management (Education)
Schools: Merage '15 (M)
Posts: 11
Kudos: 9
FAFSA Strategies 06 Mar 2013, 22:05
Kudos
Add Kudos
Bookmarks
Bookmark this Post
TRISTLW
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???
Show more

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.
User avatar
mappleby
User avatar
Joined: 04 Oct 2011
Last visit: 08 Nov 2018
Posts: 432
Own Kudos:
134
Given Kudos: 150
Concentration: Finance
Schools: Booth '15 (II) CBS '15 (M$)
GMAT 1: 700 Q44 V41
GMAT 2: 750 Q48 V46
GPA: 3.03
WE:Project Management (Military & Defense)
Products:
My Reviews
Schools: Booth '15 (II) CBS '15 (M$)
GMAT 2: 750 Q48 V46
Posts: 432
Kudos: 134
FAFSA Strategies 07 Mar 2013, 11:00
Kudos
Add Kudos
Bookmarks
Bookmark this Post
maplesyrups
TRISTLW
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.
Show more

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.
avatar
lilmisskate86
avatar
Joined: 01 Aug 2012
Last visit: 25 Apr 2013
Posts: 3
Own Kudos:
7
Schools: CBS '15 HBS '15 Marshall '15 Haas EWMBA '16 Stanford '15 Yale '15
Schools: CBS '15 HBS '15 Marshall '15 Haas EWMBA '16 Stanford '15 Yale '15
Posts: 3
Kudos: 7
FAFSA Strategies 25 Apr 2013, 15:27
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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!
User avatar
jko
User avatar
Joined: 17 Mar 2011
Last visit: 25 Feb 2016
Posts: 411
Own Kudos:
221
Given Kudos: 5
Location: United States (DC)
Concentration: General Management, Technology
Schools: Duke '15 (WL) Kellogg '15 (D) Darden '15 (M) Ross '15 (WL)
GMAT 1: 760 Q49 V45
GPA: 3.37
WE:Information Technology (Consulting)
Schools: Duke '15 (WL) Kellogg '15 (D) Darden '15 (M) Ross '15 (WL)
GMAT 1: 760 Q49 V45
Posts: 411
Kudos: 221
FAFSA Strategies 30 Apr 2013, 10:52
Kudos
Add Kudos
Bookmarks
Bookmark this Post
lilmisskate86
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!
Show more

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.
avatar
Guangjujiu
avatar
Joined: 18 Dec 2013
Last visit: 10 Aug 2014
Posts: 35
Own Kudos:
4
Given Kudos: 2
Schools: McDonough '16 (A) Duke '16 (A$) CBS '16 (D) HBS '16 (S) Sloan '16 (S) Wharton '15 (S) Smith '16 (A)
Schools: McDonough '16 (A) Duke '16 (A$) CBS '16 (D) HBS '16 (S) Sloan '16 (S) Wharton '15 (S) Smith '16 (A)
Posts: 35
Kudos: 4
FAFSA Strategies 09 Jan 2014, 17:43
Kudos
Add Kudos
Bookmarks
Bookmark this Post
MDF
MikeBolton

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.
Show more

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.
avatar
tpz
avatar
Joined: 08 May 2014
Last visit: 30 Jun 2015
Posts: 20
Own Kudos:
8
Given Kudos: 4
Schools: Kelley '17 (M$) Tepper '17 (D) Marshall '17 (A) Ross '17 (D)
GPA: 3.5
Schools: Kelley '17 (M$) Tepper '17 (D) Marshall '17 (A) Ross '17 (D)
Posts: 20
Kudos: 8
FAFSA Strategies 27 Feb 2015, 13:02
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Quick FAFSA question: Do I need to fill one out before getting my application decision, and send it to the schools that I have applied to? Or do I wait until I get in and then send in any financial aid documents?

I keep thinking this process must be similar to undergrad applications, but from this thread it looks like it's really different... no need based aid?!

Thank you!!
   1   2   3   4   5