The financial aid process has some quirks to it. It is based on ability to pay, assets, income, age of oldest parent, how many children living at home, etc. Knowing how the system works is a definite advantage. That is one of the main reasons I wrote my book. Most parents find this information after it is too late to use it to their advantage.
The custodial parent fills out the FAFSA forms which determines how much money will be awarded to the student and the parents. |
This parent will have the burden of college expenses. The good news is that when income is low, the aid is extremely generous.This story is a true example. Mom had an adjusted gross income of $18,000 per year. Daughter applied to a private college with a price tag of $21,000. Mother's cost was $850 for the year. The daughter took out guaranteed student loans and got a work-study job, but the college gave the student $10,000 out of its own pockets. The government assisted with work-study and a PELL grant. The state of residence gave a $3,000 tuition grant. This girl selected a college that met 100% of financial need. Another college asked the mother to contribute $6300 out of pocket.
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