The FAFSA is not Rocket Science

Today's New York Times has an interesting article on the Free Application for Federal Student Aid (otherwise known as FAFSA) and the fits being experienced by parents all over the country trying to navigate the application which is 6 pages long and contains about 100 questions. Our new Education Secretary, Arne Duncan, is even quoted as saying "you basically have to have a Ph.D. to figure that thing out". To Secretary Duncan and petrified parents everywhere, I'm living proof that no such advanced degree is required.

On my very first try, 7 years ago, I completed the FAFSA in about an hour. Once, you've completed the form, which is permanently saved at the FAFSA website, you use a user name, password and pin to reenter, once a year, to update for the following year, and make any other required changes. That process takes about 15-20 minutes.

This is not to imply that eligility for FAFSA is always equitable, which I believe is the reason why alot of parents today are experiencing fits. With the down economy and restricted credit and lending markets, thousands, if not millions more parents are looking for ways to lower the cost of college. And every high school counselor is advising parents across the board to apply, even if there is no possibility that they will qualify for federal financial aid.

Consequently, as the Times notes, "many affluent families now use high-priced financial advisers to maximize their eligibility for financial aid". To the tune of $1500.00 for a presentation. Earth to affluent parents ... if you can afford to pay $1500.00 for a presentation, YOU DON'T QUALIFY FOR FAFSA!!!

If your AGI is above $50K, you're sending 1 kid to college, and you have money in savings and/or money market accounts (liquid assets), don't bother filling out FAFSA. If you're sending 2 kids to college, your AGI exceeds $75K, and you have liquid assets, again, don't bother filling out FAFSA. You won't qualify.

Conversely, if you own a million dollar home, hold 2 leased cars, but were collecting unemployment last year, you'll probably get a FAFSA award. Perhaps that's where a relative few people are spending inordinate amounts of time explaining their situations on the application. No doubt, this isn't the norm.

Is FAFSA fair under all circumstances? No and I'll leave the inequities to another time and post. For those who truly need assistance, there's not much to explain. Hard and cruel numbers speak for themselves, and no manner of glossy presentations, at whatever the price, will overrule the reality. FAFSA is straightforward and should take no more than an hour or two to complete. If you're child qualifies for the maximum grant, I can't think of a more cost effective way to spend the time.