I’m getting ready to fill out my FAFSA for grad school. What’s the best way for me to qualify for fin aid?
I’ve worked for a management consulting firm since I graduated from undergrad in 2006, so I’ve managed to save a modest chunk of my salary/bonuses. Should I try to shelter my savings by paying off outstanding undergrad loans (about $6000)? Should I divert more funds into my 529 plan (I’ve put about $4000 into it over the past 18 mos)? Or perhaps I should just pay off my car loan early? I want to get the most out of my FAFSA application since, like most graduate students, I will be funding my 3-year education entirely on my own. What’s more, I’m expecting to need quite a large sum for living expenses over the next 3-years – the cost of living is pretty high in NY/London/Boston/SF (guess my schools of choice, wink, wink). I don’t want to be penalized for being a saver since I could have blown my paychecks on Prada purses and Theory suits instead of contributing to my 401K, 529 plan, and savings accounts. I’ve heard it all, “give your savings to your parents”, “open a Roth IRA”. HELP!
I’m in the same place right now… about to fill out FAFSA to begin my graduate studies…
First off all, I’m sure you know how FAFSA works… that the money you’ve saved you will have to show on your forms. and all…. what I would suggest is PAY off the loans first!! Those only accumlate more interest, and the last thing you want to have to do is pay those loans for 10 years, when you have GRAD school tuition to pay for…. Either that, or pay off the car, which also has interest… but if your loans have a higher interest rate, get those paid off FIRST!
Make sure you file your taxes BEFORE filling out the FAFSA form.. it’s much easier with taxes being taken care of… and because you’ll be starting graduate school, you will be considered independent from your parents (yay!), and they will no longer need your parents tax info in your FAFSA form… this can be a huge advantage. FAFSA will only look at what you earned gross over the last year.
Unless you’re making a LOT of money, you’ll probably qualify for most aid…..
good luck!
