Case Study: How the Jones Family Boosted Their Financial Aid Package with Three Simple Strategies
Jack and Jill Jones increased their daughter’s financial aid by $15,000 annually using three simple strategies.
Meet the Jones Family
Who They Are: Jack and Jill Jones are proud parents of two children. Their eldest, Samantha, is heading to college next year. Jack works as an engineer, and Jill owns a small business. Together, they earn $110,000 annually.
Their Goal: Help Samantha attend her dream school without derailing their retirement plans or shortchanging their younger son, Ben, who is four years behind Samantha in school.
The Challenge: Like many families, Jack and Jill assumed their income made them ineligible for meaningful financial aid. Plus, their lack of strategic planning had left them scrambling for resources.
The Problem: Financial Aid Barriers
Late FAFSA Filing: The Joneses had filed the FAFSA late in previous years, unaware that many state and institutional aid programs operate on a first-come, first-served basis.
No Appeal Process Knowledge: When Jack’s company cut back overtime hours, they didn’t realize they could appeal for more aid.
Disorganized Financial Assets: The Joneses’ savings were sitting in a high-interest savings account, unintentionally inflating their Expected Family Contribution (EFC).
The Solution: Three Strategies That Made All the Difference
1. Early FAFSA Filing
After learning that FAFSA submissions open on October 1st, Jack and Jill made it a priority to gather their documents early and file as soon as possible. Filing promptly ensured Samantha’s application was reviewed for all available aid.
Result: Samantha received an institutional scholarship of $7,500 per year for being in the top 15% of applicants at her college.
2. Professional Judgment Appeal
When Jack’s hours were cut at work, the Joneses reached out to the financial aid office to explain their new financial reality. With documentation of reduced income and their 2022 tax returns, they successfully filed a professional judgment appeal.
Result: The school added $4,000 in need-based grants to their aid package for Samantha’s freshman year.
3. Strategic Asset Repositioning
The Joneses discovered their savings account was negatively impacting their EFC calculation. By transferring some of their funds into a 529 plan for Ben’s future college expenses, they reduced their countable assets under FAFSA guidelines.
Result: Their adjusted EFC made Samantha eligible for a $3,500 state grant.
The Outcome: A $15,000 Boost in Financial Aid
Thanks to their proactive approach, the Jones family increased Samantha’s financial aid package by $15,000 annually. Over the course of her four-year degree, this amounts to $60,000 in savings—significantly reducing their reliance on loans and out-of-pocket expenses.
Key Takeaways
File Early: Submitting the FAFSA as soon as it opens on October 1st maximizes your family’s access to state and institutional aid.
Use the Appeal Process: Don’t hesitate to request a professional judgment if your financial situation changes.
Reorganize Assets: Small adjustments to how you save and invest can make a big difference in your EFC calculation.
Could Your Family Achieve Similar Results?
Wondering how to optimize your family’s financial aid strategy? Don’t leave money on the table! Let’s create a personalized plan to help your child achieve their college dreams while keeping your financial future intact.
Schedule a Getting Acquainted Call today to discover how we can help you save on college and achieve your family’s financial goals.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by GW Financial, Inc. to provide information on a topic that may be of interest. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 GW Financial, Inc.