Student Loans--FASFA and Income Brackets

[daveshoe]

I wondered if anyone out there knows how the income that you make affects how much federal aid in grants and student loans that your college bound student qualifies for. This is information that most college financial aid offices do not seem to willingly furnish for you.

I submitted a financial statement based on last year's income,and because of high start -up costs of a new enterprise,our family income was at a ''zero expected family contribution''. I guess i would like to know what the max income level is for a family of three[one child] is and still be able to maintain a low or a zero family contribution. IF anyone knows of an income table that shows an income bracket for differing levels of grant money, that would be the ''Holy Grail'' that I am seeking. Having not filed for income taxes as of yet,I figure a larger IRA contribution could reduce our income and at the same time increase her aid package. In our state . we have until March 1st to get this done.

If I knew this information,it would make it easier to know if my money was better spent now on developing the business or later as we would have to pay more for her education. BTW,the kid is bringing a huge amount to the table in her own right,as a high ACT score and athletic ability will enable her to qualify for a good portion of her own expenses.

Thanks in advance for any help you can give

 

[ndurbin]

For children the less their parents pay for college the more money they can get. Last year when my wife applied they sent a letter right off the bat claiming they could give her like $10,000 per semester, but she only ended up getting enough to cover school and tution since we weren't yet married at the time and something about her parents income. But the finacial aid dept. at that college was rather backwards. They screwed several of my friends over on refund checks and money they could have got.



Sorry I caint help more

Nathan

 

[Rman]

How much financial aid do college students receive?



Again, it is important to remember that most financial aid is need-based, it depends on the cost of attendance and a family’s ability to pay. The amount of aid you actually receive will vary from institution to institution and from other people within your income group.

The following table provides the range of financial aid awards received by most aid recipients within the middle half a given range of family incomes. One-quarter of aid recipients received less and one-quarter received more than the indicated range.



Family Income and Typical Aid Awards



For those students who received financial aid:

Family income level Percent of students who received any type of financial aid Most got between





Below $20,000 83% $3,200 & $6,500

$20,000-40,000 76% $2,800 & $6,550

$40,000-60,000 56% $2,300 & $5,500

$60,000-80,000 54% $2,000 & $5,100

$80,000-100,000 40% $1,500 & $4,950

Above $100,000 32% $2,250 & $6,000



SOURCE: U. S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study: 1995–96.

Dave, how ya been!



Hey this is some info I found, It's not what you really need, and frankly I don't think they release that Information. That percentage is the precent of those that applied that actually got aid. So in the 40-60K group 56% of the applicants received between 2300 and 5500 dollars of aid. That's substantial. I do believe this is just aid, ofcourse Stafford loans are available, which can be cumbersome when you graduate. Luckily it's only about 50 bucks a month, however paying off a 20k loan at 50 bucks a month takes forever.



I think your idea of contributing more to the IRA to lower your income is a grand idea, it should help your daughter out.



Wish her luck for me, it's good to see youth active in their education. Where's she going to apply for school? Has she been excepted anywhere yet? Take it easy