Financial aid is an inherently complicated topic. Sometimes students and parents have questions that may seem obvious to people who have more experience with financial aid. But they can't find the answers they need. This week's Ask Kantro column addresses several such questions. Hi. I was wondering how or where you can apply for the federal supplemental educational opportunity grant. I ...

Why is it better for parents to pay off credit cards (if one can) before obtaining loans for a child for college? — Diane H. Most forms of consumer debt, such as credit cards and auto loans, are ignored on the Free Application for Federal Student Aid (FAFSA). Even education loans are ignored. The only exception to this rule occurs when ...

How does a chapter 13 bankruptcy affect financial aid? Would it be difficult to get financial aid for my child because my husband and I filed chapter 13 about 2 years ago? — C. F. A previous bankruptcy can affect eligibility for some education loans but it does not affect eligibility for other forms of financial aid. The Bankruptcy Reform Act ...

Since siblings' UTMA 529s don't get reported on the FAFSA, but the student's UTMA 529 is counted as a parent asset, each of my kids would have a different amount listed on the FAFSA as parent assets. The amounts would be vastly different because most of my son's money will have been used by the time my youngest starts college. We'll ...

For many students, January 1 is doomsday. It’s the day the FAFSA application becomes available, triggering an overwhelming sense of dread as students either fill out the FAFSA alone or with their parents. Fortunately, the FAFSA gets easier each year as the Department of Education continues to make improvements to the application system and the designation of federal aid. Before we ...

I adopted a special needs foster child when he was 11 years old. I have been told he does not qualify for any aid. I recently learned that if I would have adopted him at age 13 he would of received a full scholarship. My son wants to attend a private college at approximately $43,000 per year. Do you have any ...

You've mentioned previously that while Parent PLUS loans are nominally eligible for public service loan forgiveness, they are not eligible for IBR or ICR, which leaves nothing left to forgive. Is there no relief for Parent PLUS loans altogether? Or, is there any way for Parent PLUS loans to qualify for loan forgiveness? — Anonymous Federal Parent PLUS loans are not ...

The Budget Control Act of 2011 enacted automatic across-the-board spending cuts in the federal budget if Congress in unable to achieve specified reductions in overall spending on its own. This process is called sequestration. The White House's Office of Management and Budget released a 394-page report on Friday, September 14, 2012, detailing the specific budget lines in the FY2013 budget that ...

The President's budget for fiscal year 2014, which was released on April 10, 2013, includes a proposal for switching new federal student loans to a hybrid fixed/variable interest rate scheme starting July 1, 2013. A similar proposal was introduced the day before by several Republican Senators as the Comprehensive Student Loan Protection Act (S.682). Subsidized Stafford Loan Rate May Double Currently, ...

I'm currently an MBA student who has a VERY adverse credit history. Part of which includes a defaulted Federal Loan. I'm halfway through my first year of business school and find myself needing more money. I've found someone who does not have an adverse credit history who is willing to cosign. I'm worried that I still won't receive the loan. What ...

First things first – what does “maximizing aid eligibility” even mean? To maximize your aid eligibility means to make your finances appear as if you require more aid – or put very simply, to appear poorer than you actually are, therefore resulting in more aid from the government and your school. When maximizing aid eligibility, keep these technicalities in mind. The ...

I am trying to advise two students whose mother died four years ago and their father died last week, unfortunately. The girls' grandmother is now taking care of them (a 9th and 10th grader) and we are concerned about the possible college financial ramifications. They are in the process of determining the Social Security benefits from their father's contributions. Once that ...

Are you familiar with any programs that could assist a low-income social worker who has used up his hardship deferments? Any assistance would be appreciated. I'm in a low-paying county, being paid a low income to assist disabled persons, and need help with my student loans. — Dave W. If your loans are federal student loans, such as Federal Stafford or ...

We are parents of a high school junior looking to learn about the best places to put our money for when we fill out that first FAFSA in two years. My husband insists that we have a "safety net" of at least $10,000 in an account for emergencies (like large car maintenance costs, accident deductibles, etc.). Currently that money is in ...

I applied to have both my husband's and my student loan debt considered in determining our payments under income-based repayment. This reduced our payments significantly. My concern is that the repayment plan selection forms have a box to check that accepts responsibility for your spouse's loan. My student loan debt is considerably higher than my husband's and should I precede him ...

Under current IRS rules, a payment made directly to an educational institution to pay for the tuition of a student does not count as a gift to the student for gift tax purposes. For example, a grandparent can avoid gift taxes by writing a check to the college for their grandchild's tuition instead of giving the money to the student or ...

Everyone wants a slice of the American Dream and, in this modern day, going to college is essential to success. Forget the Jones’, these days Americans are finding it increasingly difficult to keep up with the very student loans they took out to help ensure future success. So, what happens when they very institution that’s supposed to safeguard your future now ...

The next several Ask Kantro columns will answer questions about the Free Application for Federal Student Aid (FAFSA). The FAFSA may be filed starting on January 1. The FAFSA is used to apply for student financial aid from the federal and state governments and from most colleges and universities for the award year that runs from July 1 to June 30. ...

2011 was an eventful year for student financial aid, student loans and scholarships. This article summarizes the major events, positive and negative, for student aid in 2011. It also provides a few highlights of developments that are anticipated for 2012. The Department of Defense and Full-Year Continuing Appropriations Act, 2011 (P.L. 112-10, April 15, 2011) ended the year-round Pell Grant program ...

My son was awarded an amount from FAFSA and also money from the LIFE and Pell grants. We paid the remainder of his tuition out of pocket. He started his freshman year and started having some medical issues. He withdrew from school during the second drop period. The university sent us a letter explaining how this money was sent back to ...