VANITY: How does one get the most out of FAFSA?

Does anybody out there know the college financial aid game? What are the do's and don't's? What life-strategies help or hurt when it comes to getting the most out of college financial aid?

I currently have a sophomore in a private university, and we have been fortunate that the college has provided this child a full ride so far.

I also have a senior in high school, and he is looking at private schools as well ($$$$). We also have a third-grader.

I have a modest income (let's say I have never maxed my Social Security withholdings). My wife has a side business that earns about $3k/yr, and it won't grow to much more than that.

As far as debt, I have about $135k mortgage balance on a home worth appx $210k, and I pay $817/mo on that. I have a 5 year car loan on a modest minivan, appx $330/mo, with 42 mos to go.

Thank the Lord, we are in good health, and there are no financial issues regarding that.

I would like to do a cash-out refi to fund a screened-in back deck and a new roof - likely $25k-$30k.

Don't have a house, don't have a car, don't have a spouse, and be sure you work two jobs. That's how to get the maximum. : )

If the child has his own money, you get a lot less in aid. They feel they are entitled to count one-third of the child's savings or other assets toward the family contribution each year.

Also, be careful of the loans. They can be a burden for many years to come, and combined with credit card debt can hold a young person back from what he wants to do in life. Often they are not dischargeable, and you can never settle a Sallie Mae loan. Deferment is only for real hardship, and with forbearance the interest keeps adding up even though you are not making payments. In general, it's not wise to go deeply into debt just to have a top-tier school with a big name.

Getting financial aid via Pell Grants is tough. Seriously, it would probably be easier for me to get food stamps (were I not a college student).

I'm a 25 year old student, so I am classified as an "independent" student, and it's much easier now since only my income is considered.

However, when I first decided to return to college at 21 years of age, I was denied federal assistance initially, and had to take out a student loan. Even though I was living on my own. Even though the parent I used for the information they required lives in Charlotte, NC and gives me no money or support. Even though I could prove with lease agreements, utility bills, and auto insurance policies ALL IN MY NAME.

The reasoning? My parents make too much money. (They are comfortable, but by no means millionaires) The stupid and arbitrary system automatically assumed that my parents would simply foot the bill.

At the suggestion of the Financial Aid Officer at my school, the next year I simply ommitted my parents information, and wrote a letter to the school stating my independence, accompanied by the same verifiable documents supporting that statement. What she told me, was that all information given to the FAFSA dolts would be used to compute my EFC (expected family contribution), and that if information was ommitted, I could let them know about mitigating circumstances, and be considered an "independent" student before the cutoff age of 23.

The next year, I did just that, and became eligible for the maximum amount of aid. Even got a little more because of my GPA.

I am assuming your kids live with you, or in on-campus housing. If that's the case, it may be a bit more difficult to apply for aid the way I did. However, if they have certain legal documents in their own names, it may be easier to prove their "independent" status. Otherwise, they will have to include your income on their application for aid.

In my opinion, Pell Grants are unfair to the middle class, and to those independent students under the age of 23.

Good Luck to ya, FReepmail me if you have specific questions.

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