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you know there may be loan forgiveness coming right??? shoulda waited maybe??? biden was talking about canceling like $10k for everybody, coulda saved some of that settlement money
The latest FAFSA loan forgiveness proposals are currently held up in court, and there's no guarantee when or if they'll be implemented. For someone going through adoption qualification where timing matters, waiting for potential forgiveness that might never come isn't practical advice. Plus, adoption agencies want to see actual debt reduction, not potential future reduction.
Congrats on being debt free!!! Quick question - did you have to pay taxes on your settlement? And will you have to pay taxes on the loan payoff? I know sometimes debt cancellation is considered taxable income, not sure if this is the same situation.
Great question. Personal injury settlements are generally not taxable income at the federal level. And since this wasn't debt cancellation but rather a complete payoff using personal funds, there's no tax implication for the loan payoff either. The OP essentially used their non-taxable settlement to pay a debt, which doesn't create a taxable event. However, state tax rules can vary, so it's always good to consult with a tax professional.
anyone else notice how the confirmation page is super misleading? it says "congratulations you've completed the fafsa" even if the signatures didn't actually work. so frustrating!
UPDATE: We fixed it!!! It turned out to be THREE separate issues: 1. My husband needed to sign (I didn't realize this was required since we file jointly and I handle all the college stuff) 2. My son and I were using the same phone number on our FSA ID profiles 3. We were using Safari instead of Chrome We created an FSA ID for my husband, updated my son's phone number to his cell instead of our home number, switched to Chrome, and cleared all browser cache before trying again. Finally got the confirmation email that the application was successfully processed! Our SAI score is now available in the portal. Thank you all SO MUCH for your help! This forum literally saved us weeks of frustration.
Has your son checked if Berkeley offers any school-specific financial aid options? My daughter's university had several engineering-specific scholarships that weren't part of the standard financial aid package. Worth asking Berkeley's financial aid office directly!
Thanks everyone for all the helpful advice! I'm going to try using Claimyr first to see if I can get our FAFSA issues resolved and speak to an actual human being at Federal Student Aid. If that doesn't work out, I'll look into the Parent PLUS loan option, and then explore private loans with SoFi and College Ave as backups. I really appreciate all the insights and warnings about variable rates and loan management - this community has been incredibly helpful!
just wait till u get the packages and see how TERRIBLE they are!!! my daughter got into her dream conservatory and they expect us to pay $42k a year!!! with a household income of $95k!!! make it make sense!!!!!
This is unfortunately common with many performing arts programs, especially private conservatories. Their institutional funds are often more limited than larger universities. I always recommend students apply to a mix of public and private institutions for this reason. Public universities with strong arts programs often provide better overall value. Have you tried appealing the offer? Many schools have special appeal processes specifically for arts students where they can review your financial situation again.
just checked my daughters portal and now it says "pending verification" what does that even mean?? more delays??
Pending" verification means your FAFSA was selected for verification, which is like an audit of the information you provided. About 25-30% of all applications get selected randomly each year. The school will request additional (documentation typically tax transcripts, W-2s, or household size)verification . Once you submit those documents,'they ll review and complete your financial aid package. This will add some time to your process - typically 2-3 weeks after you submit all requested documents. I recommend uploading any requested verification documents as soon as possible to minimizedelays.
Amun-Ra Azra
wait i'm confused... isn't FAFSA using the 2023 tax info now for the 2025-26 form? why are they looking at your 2022 taxes?
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Summer Green
•You're mixing up the tax years. For the 2025-2026 FAFSA, they'll use 2023 tax information. For the 2024-2025 FAFSA (the current application cycle), they use 2022 tax information. The OP is dealing with the current application cycle.
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Amun-Ra Azra
•ohhh that makes sense!! i get so confused with all these different years lol
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Payton Black
Update: I wanted to thank everyone for the advice! I followed the suggestions and contacted the financial aid office proactively. They were actually really understanding about our situation. They gave us a specific list of documents to provide: 1. Copy of our extension paperwork 2. Letter from our tax professional 3. Documentation of our Fresh Start program enrollment 4. An estimated income worksheet (they provided their own form) They said they'd put a note in my son's file and as long as we provide these documents within 30 days, his work-study shouldn't be affected. They also said we'll need to provide the actual tax return info once we file, but that can be handled through a professional judgment review as someone suggested. I feel so much better knowing what to expect rather than just waiting for a potential verification issue to pop up! Thanks again to everyone who shared their experiences and advice.
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Harold Oh
•That's excellent news! This is exactly why proactive communication with the financial aid office is so important. They deal with these situations regularly and usually have established procedures. Glad to hear your son's work-study position shouldn't be affected.
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Darcy Moore
•Good for you! Wish we'd done the same instead of waiting for them to contact us. You probably saved yourself MONTHS of stress!!!
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