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Answer:
Dear
Sam,
Between
the government, the Internet and the tabloids, it
does seem like there isn't much that remains private
about our lives. And the answer is "yes." You'll need
to submit your brokerage account figures when applying
for financial aid.
Here
are some facts that might help make your application
successful.
The
FAFSA
Almost
all forms of financial aid require the Free Application
for Student Aid. For example, you'll need this
form to apply for a Pell Grant which gives up to $4,050
per year to low income students.
If
you don't qualify for low income-based aid you might
qualify for various types of state funds or merit-based
aid from specific colleges and universities. Again,
you'll need to submit a FAFSA.
The
same is true if you're applying for student or parent
loans, or a work-study program.
The
FAFSA requires the following documents:
From
parents:
-
Last year's federal income tax return
- Information
about your mortgage
- Current
bank statements
- Current
brokerage firm statements
- Information
about stocks, bonds, mutual funds and any other
investments held outside your brokerage firm
From
students:
-
Social security number
- Driver's
license
- W-2
forms if you've held a job
- Last
year's federal income tax return
- Current
bank account statements
- Current
information about investments held in the student's
name or in trust for the student
- List
of colleges and universities of interest
Monthly
Statements, Trade Confirmations and Annual Tax forms
are all available online at BUYandHOLD where they
can be accessed and printed.
Deadlines
Obviously,
you'll find it easier to file a FAFSA once you've
completed your tax return. So that should be your
first priority. The next two deadlines for submitting
a FAFSA are June 30, 2006 and July 2, 2007. However,
many colleges set earlier deadlines. You'll need to
check directly with colleges in which your son is
interested.
The
Application
You
can download the FAFSA online at: www.fafsa.ed.gov.
Or you can get a paper copy by calling: 1-800-4-FED-AID.
Plan on spending at least an hour, perhaps longer,
filling it out. Keep in mind that the words "you"
and "your" on the application refer to the student,
not the parent. And, round out amounts to the nearest
dollar; no decimal points and cents.
If
you file electronically, you'll speed up the results
by one to two weeks.
$TIP:
Filing is free. Do not use any service that charges
a fee. It's unnecessary.
Misinformation
Your
question indicated a slight reluctance to supply such
personal information. And while I sympathize with
your feelings, I must urge you to be honest in your
application.
If
federal aid is granted but based on accidentally incorrect
information, the money must be paid back, along with
additional fines and fees.
If
aid is granted but based on purposefully incorrect
information, the fine is $20,000 along with the possibility
of prison time!
For
More Information
I
recommend reading the instructions provided by the
College Board. This is an excellent source
of information about all things related to higher
education. Go to www.collegeboard.com
and click on "Paying for College."
Good
Luck!
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