• Were you born before January 1, 19XX? (1982 for the 2005–2006 form; the year increases by one with each successive academic year.)
• Are you working on a master’s or doctorate or other graduate certificate?
• Are you married?
• Do you have any children who receive more than half their support from the student or the student and spouse?
• Do you have any dependents other than children or a spouse who receive more than half their support from the student and spouse?
• Are both of your parents deceased, or were you until age eighteen a ward or dependent of the court?
• Are you a veteran of the U.S. Armed Forces?
If you are filling out the FAFSA on the Web you will automatically be
taken to the section of the form where you will need to fill in information
about the finances of the parents. If you are using the printed copy of the
form, the instructions will direct you to the fourth section of the form.
If your answers to questions in Step Three of the printed FAFSA or to the
similar automated questions in the FAFSA on the Web identify the student as
independent of his or her parents, further questions will focus on the student’s
household size and income. Among the questions asked are:
What is the student’s household size? Include in your (and your spouse’s) household: (1) yourself
(and your spouse, if you have one), and (2) your children, if you will provide more than half of
their support from July 1, 20XX through June 30, 20XX, and (3) other people if they now
live with you, and you provide more than half of their support, and you will continue to provide
more than half of their support from July 1, 20XX through June 30, 20XX.
The student’s household size begins with the student and a spouse if
there is one. Added to the total are any children and other persons if the
student and spouse provide more than half of the cost of their support.
Remember that two people or two households cannot both claim to provide
more than half of someone’s support.
What is the student’s number in college? Always count yourself as a college student. Do
not include your parents. Include others only if they will attend at least half time in
2005–2006 in a program that leads to a college degree or certificate.
This awkwardly phrased question is asking how many people in the student’s
household are currently attending college at least half-time. The number includes
the student and spouse if there is one. It does not include the parents.
Questions About Assets and
Investments of Students and Parents
Students and parents of dependent students are also asked to provide
information about cash, savings, and investments. The FAFSA does not,
however, include the principal residence of the student or parent in its
calculation of net worth. (However, questions about the net value of the
family home are included on the CSS/Profile, and some colleges will ask for
documentation about home values in their calculation of financial aid.)
Here are some of the questions about assets:
As of today, what is the total current balance of cash, savings, and checking accounts?
As with other questions on the FAFSA, “today” means the day the form is
actually filed. The question applies to the student (and spouse if married) and to
the parents. I am in no way suggesting that you do anything illegal or even sneaky,
but if you have a $20,000 bill that you must pay and you have $20,000 set aside
for that purpose, you would probably be better off paying the bill (and reducing
your current balance of cash or savings) before the date you file the FAFSA.
As of today, what is the net worth of current investments, including real estate (not
your home)?
Net worth means the current value of a holding minus the outstanding
debt on the specific investments listed; the information should be current as
of the date the FAFSA is filed. Investments tracked here include real estate,
mutual funds, stocks and bonds, options, money market funds, certificates of
deposit, other securities, land sale contracts and mortgages issued to borrowers,
commodities, and trust funds. Also included here are education savings plans
such as Coverdell savings accounts and 529 plans.
Excluded from investments are your own home, the current cash value
of any life insurance, retirement plans (including pension funds, annuities,
retirement IRAs, and Keogh plans), and prepaid tuition plans.
If net worth is $1 million or more, report $999,999; if you owe more
than the value of your investments, enter 0. (If your financial holdings are
very large or very complex, you may want to involve a qualified tax preparer
or attorney in determining whether it is worthwhile to file a FAFSA, and if
so, to obtain assistance.)
As of today, what is the net worth of any current business and/or investment farms? Do
not include a farm that a student or parent of a dependent student lives on and operates.
This question is asking about investment farms—owned and operated
for profit but not the student or parent’s principal place of residence or one
where either participates in the operation. What is sought is the net worth
as of the date of filing of the FAFSA; this is the current value of the land,
buildings, machinery, equipment, and inventory minus any debt for which
the business or farm was used as collateral.
If you, the student, receive veterans’ education benefits, for how many months from July
1, 20XX through June 30, 20XX will you receive these benefits?
The answer is the number of months in the coming school year that the
student expects to receive these benefits.
What VA benefits amount will you receive monthly?
The answer is the amount per month that the student expects to receive in
the coming school year, the same period covered in the previous question. The
question includes a list of programs accounted for here. Not included here are
death pensions or Dependency & Indemnity Compensation (DIC), and a spouse’s
veterans’ education benefits.
What is the student’s parents’ household size?
This is the parent’s equivalent to the question asked of students. If the student
is still dependent on the parent, even if he or she doesn’t live with them, the
student is included in the count. So, too, are the parents and their other children if
they provide more than half of their support in the coming school year.
If you are using the automated FAFSA on the Web, the computer will
take you to a worksheet that will assist in calculating the proper answer
here. It will draw some of its information from previously asked questions,
including the marital status of the parents and the student.
What was the amount the student’s parents paid in income tax for 20XX?
See the similar question about the student’s income tax, above.
Enter the student’s parents’ exemptions for 20XX.
See the similar question about the student’s tax exemptions, above.
Read More: Questions Asked of Financial Aid Independent Students
