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How to Fill Out a FAFSA Correctly

Each October, the Free Application for Federal Student Aid or FAFSA is made available for the next school year. This is the form that families fill out to apply for federal grants, loans, and work-study funds for college students. It is administered by the U.S. Department of Education, which provides more than $150 billion in student aid each year.

Your eligibility for federal grants (which don’t have to be repaid) and federal loans (which do) will generally be based on your financial need, and this is determined by the information you supply on your FAFSA.  You can apply online or print out a PDF from the website and mail it in.

Filling out this form may seem like a daunting task, but changes to the process have made it easier than ever before. Before you start, have the following information ready:

• Social Security number or Alien Registration number
• Federal tax information or tax returns
• Records of untaxed income
• Cash, savings, checking account balances
• Investments other than your home

To complete the form online, follow these 8 steps:

1. Create an account (FSA ID).You and your child should create your FSA IDs. This serves as your legal electronic signature.
2. Start the FAFSA form.
3. Fill out the Student Demographics section. Here’s where you’ll enter basic information about your child. Be sure you type in your child’s name and number exactly as it appears on their Social Security card.
4. List the schools to which you want your FAFSA information sent. Add every school your child is considering, even if he or she hasn’t applied or been accepted yet.
5. Answer the dependency status questions. These are questions to determine if your child is required to provide parent information on the FAFSA form. Even if your child supports him or herself, files taxes separately from you, or doesn’t live with you, he or she may still be considered a dependent student for federal student aid purposes.
6. Fill out the Parent Demographics section.
7. Supply your financial information. This step is simple if you use the IRS Data Retrieval Tool (DRT). This allows you to import your IRS tax information with just a few clicks.
8. Sign your child’s FAFSA form.The quickest and easiest way to sign your child’s FAFSA form is online with your FSA ID.

Each state and school has its own deadline, so make sure you check the school’s website or call its financial aid office. You’ll find state deadlines on the FAFSA website.

5 Reasons Credit Unions Offer the Best Auto Loans

The average cost of a new vehicle today is around $37,000.

Here are five reasons it makes more sense to get your loan through us.

5. With us, you have a better chance of getting your loan approved. Even though the loan application process is the same and the underwriting process is similar, the credit union may make some adjustments that a commercial bank would not. Many credit unions are also more inclined to listen to its members’ needs and unique situations—sometimes adjusting terms of a loan accordingly.
6. We have lower rates. A five-year term is the most common loan term for a new or used car, and rates at a credit union are typically much lower than the average rate at a competitor bank. The savings in interest alone is a major reason to consider this financing. Just think of what you can do with that money.
7. We provide personalized service. Because they are non-profit organizations and work to provide members with high-quality customer service, operations decisions are made by a group of volunteer board members rather than a corporate office. You can openly discuss your concerns about your loan, talk about flexible repayment options, and review your financial situation with a professional lending officer. This can alleviate some of the pressure of applying and securing financing for your vehicle and you can be more confident that the credit union is working with your best interests in mind.
8. We offer educational resources. Many credit unions will provide information such as financing options and how to make the best decisions when assessing the value of your car purchase. If you’re a first-time car buyer and apprehensive about the loan process, you can turn to a credit union for unbiased answers.
9. We offer a non-sales approach. Unlike commercial banks, which often give their lenders bonuses or some type of compensation for the loans they get approved, credit unions, as not-for-profit financial institutions, work for their members and do not try to sell you something you don’t need.

The bulk of a credit union’s profits go back to members in the form of lower rates on financial products and more flexible loan options. If you don’t like the pressure of working with lenders from a commercial bank, a credit union is the answer.

U.S. consumers are once again increasing their collective credit card debt, which now exceeds $1 trillion. The Credit Card Accountability, Responsibility and Disclosure (CARD) Act protections, which went into effect in February 2009, require card issuers to disclose rates and other information more clearly. This should make it easier for consumers to monitor what they owe. But, regulations can't prevent people from making poor debt management habits.

Here's some advice for controlling credit card use:

• Actively manage your account. Open and examine your credit card statements promptly. Look for unauthorized use, of course, but also look for announcements from the issuer. Under the new rules, you must have 45 days' notice of a change in your card's terms, such as an interest rate increase. If you choose to "opt out" of the change, you no longer will be able to add new charges to your card, and will want time to get a replacement while you pay off the old balance.
• Keep your credit score healthy. This number between 300 and 850 is a measure of your trustworthiness as a borrower. The higher your score, the easier it is to get a loan and, often, the more favorable the interest rate. The most important ways to maintain and improve your credit score is by paying all your bills on time and not taking on excessive debt.
• Watch your card balance-to-limit ratio. It's OK to occasionally "max out" your credit card for important purchases, as long as you can pay it off in a few months. But over the long term, try to keep your total credit card debt to a reasonable 10% to 20% of your total credit limit. If the ratio gets much above 20%, and you can handle the payments, ask for a higher limit on your current card or get another one. Don't add new cards too often, though, and don't close several unneeded accounts in a short period—either move can lower your credit score.
• Understand the overlimit option. The CARD Act allows you to choose what you want your card issuer to do when you try to go over your card's credit limit. If you "opt in," you can go over the limit for a fee. If you "opt out," your attempt to go over the limit will be declined.

If you don't already have a Platinum or Classic Credit Card from Lebanon Federal Credit Union, now's the time to get one!