Financial Authority of Maine's 5 on the 5th (December)

Five Situations When a High School Senior Can Be Considered Independent When Filing the FAFSA  

Most students under the age of 24 are generally considered dependent for financial aid purposes. The U.S. Department of Education requires that parent income and assets be considered when determining financial aid eligibility for dependent students. However, there are situations when a high school senior may be considered independent and, therefore, not required to provide parent information on the FAFSA.

The following are some possible scenarios:

  1. Emancipated, in Legal Guardianship, Orphaned, in Foster Care, or a Ward of the Court 
  If a student is an emancipated minor or in legal guardianship (or was upon turning age 18), as determined by a court in the student's state of legal residence, the student is considered independent. Also, if both of the student's parents are deceased, the student was in foster care, or was a dependent ward of the court at any point when the student was 13 years or older, the student is considered independent.

2. Marriage
If the student is married on the day the FAFSA is signed, the student is considered independent. However, the student would need to include his or her spouse's income and asset information on the FAFSA.

3. Children or Legal Dependents 
If the student has a child (or is expecting a child that will be born before the end of the award year) or a legal dependent that will receive more than half of his or her support from that student during the upcoming academic year, the student would be considered independent.

 4. Homeless Youth 
If, at any time after July 1st of the previous year, the student was determined to be an unaccompanied homeless youth by a school district homeless liaison or the director of an emergency shelter program funded by the Department of Housing and Urban Development (HUD), the student is considered independent. The director of a runaway or homeless youth basic center or transitional living program can also make this determination, as well as whether a student is independent because he is an unaccompanied youth who is self-supporting and at risk of being homeless.

 5. Unusual Circumstances
If the student does not meet any of the previous conditions but has extenuating circumstances, the student should contact a financial aid administrator at the college the student is planning to attend. A dependency override may be considered by a financial aid administrator on a case-by-case basis for students with unusual circumstances. Supporting documentation must be provided and typically originates from a third-party with knowledge of the student's unusual circumstances. In all of the above circumstances, students should be prepared to provide documentation of their specific situation to the financial aid office.

For additional information or other circumstances under which students may be considered independent, please contact a financial aid office or call FAME at 1-800-228-3734.

Financial Authority of Maine's 5 on the 5th

November 2013 ~ Five Steps to College Budgeting        

Money, specifically not having enough of it, is a challenge for most college students. Borrowing money is not always the best solution. Developing a budget will help you make the best of the money you have and help you avoid borrowing more than you need. It's a simple process that has a big impact.

Here are 5 easy steps to get you started and keep you on track:

1.  Calculate Your Income 

Include money that you earn, financial aid, and money that you receive from other people (such as your parents). 

  

2.  Calculate Your Expenses
Include college expenses, such as tuition and fees, books and supplies, room and board (if you're living on campus) as well as other expenses, such as rent (if living off campus), utilities, groceries, car payment, insurance, phone bill, entertainment, car repair, etc. If you're not sure exactly what you are spending (and most people are not), it's a good idea to track your expenses for a month or two by keeping a record of every dollar that you spend. Have a smart phone? Use the FIXX app by SALT™ to track expenses.

3.  Categorize Your Expenses 
Deciding which expenses are fixed, variable, and optional will help you determine which expenses you can adjust within your budget.    

• Fixed expenses are those that must be paid and the payment amount cannot easily or quickly be adjusted. Examples would include rent and loan payments.    
• Variable expenses are those that must be paid, however, unlike fixed expenses, you have some ability to reduce the amount that you spend. Examples would include utilities and groceries.
• Optional expenses are those that you may want but you do not need. Examples include movies, concerts, and eating out. Many purchases fall into this category.   

4.   Make a Spending Plan 

Use your income and expense information to prepare a college budget. There are many online budget calculators that can help you. Don't forget to budget for savings. It is recommended that you "pay yourself first" and save 10% of your income for emergency expenses you didn't plan for, like a flat tire or a crashed computer.     

5.   Evaluate and Adjust

Evaluate your plan every month and make adjustments as needed. This is where categorizing your expenses into fixed, variable, and optional will really help you. Your categories will allow you to quickly see where you may be able to reduce your expenses. 
Remember, practicing good financial habits such as budgeting and reducing expenses can have a huge impact on your finances while you're in college and for the rest of your life! Visit FAME's financial education page for steps to financial success and other money management resources.

Financial Authority of Maine's 5 on the 5th

October 2013

Five College Planning Tips for the Next Year's College Freshmen    Are you planning to attend college in the fall of 2014? Consider these tips so that you are prepared! 1.   Research Schools    Do you have your list of schools you plan to apply to? If not, or if you want to broaden that list, research schools to find the ones that will be the best fit for you. Make sure the schools meet your academic, social, extra-curricular, budgetary and geographical needs. Two websites that allow you to search based on a variety of criteria include College Navigator and the College Board's Big Future.    To get a sense of whether a school might be a good fit financially, use the Net Price Calculator (NPC) for each of the schools on your list (the NPC tool is typically on the school's financial aid page). NPC allows you the opportunity to enter your specific information and then the school generates an estimated "net price" based on their resources. The net price is the price after grants and scholarships (funds that don't have to be repaid), and it a better estimate of what that school will cost you.     2.   Consider retaking the SATs Most students in Maine take their SAT for the first time in May of their junior year. Many students re-take the test again in the fall of senior year.  Is re-taking the SAT right for you? Check out the College Board website for information that may help you make your decision.  3.   Search for Scholarships  One of the best ways to offset college costs and minimize student loan debt is to search for scholarships. Scholarships can help meet the costs that schools are unable to provide funding for or can replace student loan debt. Searching for scholarship takes time and effort, so start early. Make sure you never pay to search or apply for a scholarship - the best scholarship programs are free! Start your scholarship search by visiting FAME's web site. For best results, make sure you are organized, follow all instructions, and carefully proofread all of your scholarship submissions.   4.   Apply for Admission  Once you decide that you want to apply to a school, find out what application is required. For example, can you use the Common Application, is there an institutional application that must be completed, or are there other options? Be thorough and proofread the entire application. You will also want to pay close attention to the admission deadlines. Many schools have early decision or early action deadlines in addition to regular admission deadlines. Learn more about these deadlines to determine which deadline is best suited for your circumstances!  5.   Apply for Financial Aid  Regardless of the schools you are applying to, be sure to complete the Free Application for Federal Student Aid (FAFSA) as soon as possible after January 1. All schools require the FAFSA to determine eligibility for federal financial aid. Many schools also use the FAFSA to award state and institutional aid. However, some schools require additional financial aid forms, such as the CSS Profile, to award additional institution funds. If a school requires an additional financial aid form, make sure you find out the deadline for that form. Lastly, remember that completing the FAFSA (and any other financial aid application) is just the first step in the process - make sure you respond promptly to any other requests from the school for information.

Why Does College Matter?

The University College - Bath/Brunswick website has an informative and motivating page titled, "Why College Matters."  It highlights the following:

"A college degree matters because it:

• "Opens the door to career options and opportunities."
• "Boosts your income."
• "Introduces you to great minds."
• "Gives you an edge in the marketplace."
• "Encourages confident self-expression."
• "Makes you a more valuable citizen."

Check it out!  Web address:  http://learn.maine.edu/bath/get-started/college-matters-2/