Category Archives: Money Management

Apply Online, Money Management, Students and Parents, Tax Information

IRS DRT

The 2021-2022 Free Application for Federal Student Aid (FAFSA) opened on Oct. 1. The FAFSA is a form that details a student’s financial situation, which is shared with selected colleges and universities to determine how much financial aid to offer the student. 

In order to share financial information, students and parents must submit their 2019 W-2 forms and tax returns. Families have the option to input this information manually, but there is another tool available that can make the process easier.

The Internal Revenue Service Data Retrieval Tool (IRS DRT) is a feature located inside the online and mobile app FAFSA. It allows students and parents to transfer 2019 tax information directly from the IRS into the FAFSA.

There are several benefits to using the IRS DRT:

1. It saves time as you’re completing the FAFSA. Instead of hunting for the correct numbers on your tax forms and running the risk of making an error, you’ll simply type a few words, click a few buttons, and the bulk of the tax questions on your FAFSA will be complete!

2. Using the IRS DRT reduces your chances of being selected for verification. Verification is the process your school uses to confirm the information provided on the FAFSA is accurate. During the verification process, your school may request various documents to verify the information provided on your FAFSA. Errors that occur when entering tax information manually can cause a student to be selected for verification.

3. If you do happen to be selected for verification, having used the IRS DRT will simplify the process. If you use the IRS DRT and are selected for verification, you will not have to provide any documentation to verify tax data. Your school will know it is accurate since it was transferred directly from the IRS into your FAFSA.

While using the IRS DRT is optional, students and parents are encouraged to use the tool to create a smoother and more accurate application process.

Apply Online, Deadlines, Dependency Status, FAFSA Errors, Financial Aid Offers, Financial need, FSA ID, Grants and scholarships, Homeless Youth, Money Management, Student Aid Report (SAR), Student loans, Students and Parents, Tax Information, Types of Financial Aid, UCanGo2 Resources, Work Study

The FAFSA Is Now Available

The Free Application for Federal Student Aid (FAFSA) is now available!

It’s the key you need to unlock money that will help you pay for college or other education after high school. Students often ask if the FAFSA is a scholarship, it’s not. The FAFSA is simply a statement about a family’s financial situation, and it’s used to determine how much federal financial aid a student may be eligible to receive.

A new FAFSA is available October 1 each year. You can submit your FAFSA even if you haven’t applied to any colleges yet. In fact, if you’re not sure which college you want to attend, you can request that your FAFSA information be shared with up to 10 different campuses that you may want to learn more about. Every student who may need money for college for the 2021-22 school year should complete this FAFSA.

The current FAFSA is available online at FAFSA.gov.

Need some guidance to get started on your FAFSA? Check out our resources:

FAFSA in Five Steps: This publication explains the steps to completing the application and provides reminders for additional materials you might need.

FAFSA Modules: These five PowerPoint presentations walk through the details of each step of the FAFSA process.

FAFSA and Financial Aid Video: Sometimes it helps to hear someone explain the FAFSA process. Our new FAFSA video walks students through common FAFSA questions.

If you’re still wondering why the FAFSA is so important, keep in mind that during the 2018-2019 school year, $2.6B dollars in federal financial aid for college was left unclaimed by students. They would have been qualified to receive the aid, but they didn’t simply because they didn’t submit a FAFSA. Discover what you’re eligible for by submitting your FAFSA today!

FAFSA Errors, Financial need, Grants and scholarships, Money Management, Student loans, Students and Parents, Types of Financial Aid, UCanGo2 Resources, Work Study

New Videos

Our friends at UCanGo2 have produced two new videos about financial aid!

FAFSA and Financial Aid provides an overview of the Free Application for Federal Student Aid and how it is the first step in successful financial aid!

Scholarships 101 provides an overview of looking for and applying for scholarships.

You can also view these two videos on our Videos page!

Apply Online, Deadlines, Dependency Status, Financial need, Money Management, Student loans, Students and Parents, Types of Financial Aid

FAFSA Preview

If you’re an incoming high school senior, you’ll probably be hearing an important question this fall that you haven’t heard before: “Have you completed your FAFSA yet?” Let us tell you what the FAFSA is, and why it’s so important.

The Free Application for Federal Student Aid (FAFSA) is the key to unlock money that will help you pay for your education after high school. It’s simply a ‘snapshot’ of your family’s financial situation, and it’s used to determine how much federal financial aid a student may be eligible to receive.

Now that you know what the FAFSA is, let’s talk about what it’s NOT. It’s not an application to college, a loan application or any type of commitment to accept the aid you’re offered. It’s not a credit check, and it’s not limited only to students with stellar grades; the application won’t even ask for your grade point average (GPA).

A new FAFSA is available October 1 each year. For high school seniors, this means yours will be ready for you to submit this October – almost a year before you begin college. Don’t sweat it if you haven’t picked a college yet. One great thing about the FAFSA is that you can have your information sent to up to 10 different campuses.

Even though your FAFSA won’t be ready until October, you can take a look at the current form to see what it’s like. There are two options you may want to consider.

Please keep in mind that neither of these tools is a replacement for the real FAFSA. You’ll still need to complete the actual form online ASAP after October 1 in order to apply for federal and some state-based financial aid.

According to the National College Attainment Network, billions of dollars in federal financial aid for college is left unclaimed each year by students who would have qualified to receive the aid; they just didn’t submit a FAFSA. You’ll never know what you’re eligible for unless you submit the application.

For more information about the FAFSA and the types of aid that are available, visit FAFSA.gov and studentaid.gov.

FSA ID, Money Management, Students and Parents

Welcome Back To School

Welcome back to campus! This year may look a bit different than last year, but it’s still important to have the right supplies to be successful. Here are some suggestions of items that can help you throughout the year.

  • The Basics. This includes notebooks, binders, pencils and pens, and of course, a bag to carry everything. You can get these supplies at the campus bookstore, most big box stores, t or even the grocery store. It’s more budget friendly to plan ahead and take advantage of sales.
  • Calendar/Planner. It takes some time to get used to your new schedule every semester. Make sure you don’t miss a class or an assignment by keeping track of your schedule and to-dos. If you prefer a hard copy tool over digital options – or to supplement them – you can browse online stores or check out a local bookstore to find your favorite calendars and planners.
  • Course Specifics. Some classes will require additional materials such as calculators, art supplies or lab equipment. You won’t know about some of these items until you get your syllabi, but be prepared and budget for additional supply costs.
  • Snacks. With late-night study sessions and back-to-back classes, you need to keep your brain fueled. Remember to pack some snacks for busy days. Need some snack inspiration? Try granola bars, pretzels, or gummy bears!
  • Organization. Everyone has a different process for organizing papers and information. Whether you use files, folders or you scan it all for digital reference, have a plan to store and keep track of key documents. During the first weeks of classes, you’ll receive an enormous amount of information, including campus event details and course syllabi. 
  • Financial Aid File. When organizing your syllabi and papers, keep a separate file specifically for financial aid information. You can keep track of the award offers you accepted and information on the additional scholarships you’re receiving. If you’ve taken out student loans, you can keep your account information, loan amounts and payment information in a safe and accessible place. It’s also good to keep a record of any information you have or will need for the FAFSA. This could include information such as your FSA ID, current Student Aid Report, tax information and more. Keeping a secure record of all of this information (whether printed out and stored in a locked location or saved in a password-protected file on your computer) will help when it comes to paying your bursar bill or submitting a renewal FAFSA.

Set yourself up for success with the right supplies to get started. It’s going to be a great year!

Financial need, Money Management, Students and Parents

Budgeting While in College

Before your first day of college, it’s important to consider creating a budget for the upcoming school year. If you know how much financial aid you’ll receive, evaluate your other monthly expenses that are a priority. You may have responsibilities such as car payments and maintenance, cellphone service and miscellaneous items. Remember that financial aid can only be used for educational, and some living expenses, so a budget can help with planning for other important purchases. Here are a few tips to assist with developing a budget while in college.

Talk it out. Talk to those who are helping you pay for college. Whether it’s a parent or guardian, conversing with those who are supporting your educational pursuits allows expectations to be set for everyone involved. Even if you’ll be supporting yourself financially in college, inform others that you’ll need to be wise with managing your resources and may not be able splurge on certain items or activities. Talking it out allows everyone to be on the same page.

Essentials first, fun second. When developing a budget, account for necessities first, – housing, transportation, utilities etc. – then designate money for entertainment. Using this order can ensure your living needs are taken care of while still giving you room to enjoy leisure activities. Some college campuses host many fun, free events that could make the most of a small entertainment budget.  

Discounts and sales help. Check to see if your favorite stores offer a college student discount, as many companies do. While this tip may not directly relate to developing a budget, it can help you stick to the one you create. Clipping coupons along with shopping on sale can also assist with managing your finances. Browse retailers’ websites or apps for coupons and sales that may help with purchasing items on your shopping list.

Avoid budget busters. Daily coffee runs or trips to the vending machine can eat away at your budget. You don’t have to stop these altogether, but limit yourself to one or two splurges a week. Buying a coffeemaker and snacks from the grocery store can minimize the impact of these habits on your budget. Additionally, instead of eating out often, utilize your college meal plan or pack a lunch. You can see what habits are busting your budget by using a budget tracking app. Trackers can show your spending behavior and give you insight to routines that may need to change.

To learn more about tips for budgeting while in college, visit OklahomaMoneyMatters.org.

Financial need, Money Management, Students and Parents

529 Savings Plan

“Save, spend, invest, give,” is a popular approach to basic personal finances. There are ways to use this method to your advantage when preparing and planning for your child’s educational future. Parents and families have an opportunity to help their children avoid the burden of student loan debt by saving money, so their child or grandchild doesn’t have to spend an overwhelming amount of money on tuition. By investing in your child’s future, you’ll give them the means to reach their education goals.

 An Oklahoma 529 College Savings Plan is a specialized savings account that’s used to pay college and K-12 tuition expenses. The money in these accounts can grow tax-free and isn’t taxed when withdrawn. In other words, no matter how much your investment grows in an OCSP (Oklahoma 529 College Savings Plan) account, you’ll never have to pay taxes on it as long as it’s used for educational expenses.

A 529 account is quick and easy to open, it can be managed online or by mail. You can set up automatic contributions from your bank account. Some employers also support these accounts and can set up payroll deductions directly to your savings account.

There are a variety of professionally managed investments to choose from to help grow your account in addition to providing direct contributions. These funds can be used at any accredited university, college or vocational school in the nation. Many international schools are also qualified to receive these funds. Additionally, up to $10,000 annually can be used toward K-12 school tuition.

OCSP can be used for certain room and board costs, computers, fees, books, supplies and other equipment that a student may require.

A common question is, “will these funds negatively affect my child’s eligibility for financial aid?” As long as the parent or grandparent is the account owner, funds are treated as belonging to the guardian and not the child. This will minimize the impact on the child’s financial aid. The direct impact on financial aid will vary by school.

If your child does not need all of the money for their education goals, you can designate a new beneficiary penalty-free as long as they’re an eligible member of your family.

So how to you start? You can open an account with as little as $100 per investment. There’s no application, sales or maintenance fee and you don’t have to contribute all on your own. Grandparents, other family members, friends and even the student can make gifts and contributions to the account.

It’s not too early to start investing in your child’s future. Learn more about the benefits of an Oklahoma 529 College Savings Plan here.

Financial need, Money Management, Students and Parents

Summer Prep for Incoming College freshmen

Graduating from high school is a huge milestone. Before you finalize your summer plans though, consider adding a few activities to your list. Implementing these tips will help you prepare for your college freshman year as you enjoy a well-deserved summer break.  

Read and review. High school may be over, but the concepts you’ve learned will appear again in upcoming classes. Since college courses typically don’t review previous material, prepare by studying subjects that gave you trouble in high school. Mastering these academic areas can aid in your college success. Reading often will help with future comprehension and critical thinking assignments.

Develop a routine. It’ll take discipline to balance coursework, other responsibilities and time with friends when you begin college. Therefore, develop a summer routine to practice designating specific times for certain activities. While your schedule will probably change when classes start, you’ll gain great time-management skills that’ll assist with meeting new academic expectations.

Gather supplies. Get an early start on back-to-school shopping. Already have your college schedule? Great! Use it as a guide to purchase supplies. Compare prices when buying course textbooks and technology. If you don’t have your schedule yet, consider purchasing the common necessities – notebooks, writing instruments, folders, backpacks, planners, etc.

Connect with others. Use social media to connect with future roommates or other students who will also be attending your campus in the fall. Converse with those who have similar interests. Not only could these connections create lasting friendships, but connecting with others before school starts could make the first few weeks on campus more enjoyable.

Explore careers. Summer is a good time to explore career interests. If you’ve already decided on your college major, research popular jobs in that field of study. Even if you’re undecided, take time to discover which industries pique your curiosity. Researching different professions allows you to see which career field could be a great fit for you. To learn about various occupations and to view over 400 videos detailing possible careers, visit OKcollegestart.org.

Financial need, Money Management, Students and Parents, Types of Financial Aid, UCanGo2 Resources

Military Benefits and the FAFSA

When it comes to reporting military benefits on the Free Application for Federal Student Aid, or FAFSA, families aren’t always sure what to include. Three questions on the application relate to military benefits; they request information about combat pay, housing allowance and noneducational veteran benefits. Let’s break them down here.

  • The first question concerning military benefits asks about the service member’s total combat pay. Depending on the military member’s rank, this benefit may not need to be reported. If the person is an enlisted member or a warrant officer, they don’t have to provide this information. However, if they are a commissioned officer, they will need to report their combat pay. This amount can be found on the service member’s W-2 form in box 12.
  • The next inquiry about military benefits concerns the service member’s housing allowance. Reporting this information is dependent on other factors. If the member receives a subsidy for on-base military housing or a Basic Allowance for Housing (BAH), then the member doesn’t need to report the benefit. Those who receive housing allowances other than the ones mentioned above must include that information on the FAFSA.
  • The last question regarding military benefits asks service members to report their noneducational veteran benefits. Those who receive the Montgomery GI Bill, Post-9/11 GI Bill, Dependents Education Assistance Program or Vocational Rehabilitation Program don’t need to provide this data. Those who receive other noneducational assistance, such as benefits including Disability, Death Pension, Dependency and Indemnity Compensation (DIC) and VA Educational Work-Study allowance, must report that information. Noneducational veteran benefits can be found on the service member’s monthly VA benefit statement.

Knowing which types of military benefit information to include on the FAFSA and gathering the right documents can make the process easier. The service member should collect the appropriate year’s tax return, W-2 forms and benefit statements to answer these three questions accurately. For more information about military benefits and the FAFSA, please visit MilitaryBenefits.info.  

Financial need, Money Management, Students and Parents, Tax Information

I Didn’t File A Tax Return for The 2019 Tax Year, Should I keep my W-2’s?

Quite simply, yes.

If you had income (earned and/or unearned) in 2019 and you are a single dependent who can be claimed as a dependent on someone else’s tax return, you may still be required to file your own return. The amount of your 2019 income will determine whether or not you need to file. See the instructions at the beginning of the 2019 IRS 1040 form, and look for page 10, Chart B.

Now that you’ve determined whether or not you should file a tax return, let’s just say you didn’t have to file because you didn’t make enough money. If this describes your situation, it’s still very important that you save the W-2(s) you received this year. You should have received one from each employer who reported your earnings and withholding tax to the IRS.

Why is it so important that you hold on to your W-2s? Think FAFSA! The Free Application for Federal Student Aid (FAFSA) will ask you to report your income from two years prior to the year that you’ll attend college. So, if you plan to go to college in the fall of 2020, you’ll need your 2018 income information. For the fall of 2021, you’ll need to supply the information from 2019.

Also, you’re still required to report your wage, salary and tip income even if you didn’t receive a W-2 from an employer. If you’re not sure what your income was in 2019, use the Income Estimator that’s available on your FAFSA.

Keep those W-2’s! You’ll need them when you’re applying for federal financial aid.