Managing Finances

Your FAFSA information should be completed based on the information of the parent you lived with most during the last 12 months. If you didn’t live with either parent, or if you lived with each parent an equal number of days, use the information of the parent who provided the most financial support to you in the most recent calendar year.

Go to FAFSA.gov. Make sure that you go to ".gov" not ".com." If you go to “.com” they will charge you $45.

A 529 account can be opened by anyone. Grandparents, other relatives or family friends can all be account owners, or simply choose to contribute to an existing account. In most states, a trust, corporation, non-profit or government entity can also open an account.

A Section 529 college savings plan is a tax-advantaged state-administered investment program that is authorized under Internal Revenue Code Section 529. These plans allow investors to save money in an account in which the earnings will grow free from federal income tax and, when used to pay for "qualified higher education expenses," may be withdrawn federal income tax-free.

Hope Scholarship Tax Credit:
The Hope Scholarship tax credit allows students, or their parents or guardians, to claim up to $1,500 per student per year for out-of-pocket tuition and fee expenditures. This $1,500 tax credit may be claimed for the first two years of undergraduate study. The Hope credit is available to taxpayers with a gross income of up to $50,000 (up to $100,000 for joint filers). The credit is phased out on a sliding scale for taxpayers earning $40,000 and above (and $80,000 and above for joint filers).

Lifetime Learning Tax Credit:

The Federal Family Education Loan (FFEL) Program makes loans available to students and their families through some 7,100 participating private lenders. The federal guarantee protects FFEL lenders against loss from borrower default. In 2001-02, the program made 6.3 million loans for a total amount borrowed of over $29 billion. These loans are guaranteed by the federal government, and are designed to give students flexible repayment options.

The Supplemental Educational Opportunity Grant (SEOG) Program program provides grants to low-income students, and generally helps supplement the aid they receive from Pell Grants and other sources. Federal funds provide for 75 percent of the award; the college or university contributes the remaining 25 percent or more. In 2001-02, the program provided $691 million in federal funds to approximately 1.2 million students at approximately 3,800 postsecondary institutions. In 2001-02, awards ranged from $100 to $4,000; the average grant was $581.

FAFSA is the free application for federal student aid. Parents and students are encouraged to fill this out after January 1st of the student's senior year, and then renew the form each following year. The FAFSA form uses numbers from your taxes to calculate a number that they think the parents can afford to contribute to their child's tuition each year. Using that number, Northland can award need based grants and work study to help pay for institutional costs.