Connect with us

Business

Tackle next year’s financial aid now

Published

on


The school season may have just begun, but it’s nearly time to start thinking about next year.

That’s because students and their families can begin to submit two key applications for financial aid on Oct. 1 to help pay for higher education for the following school year. And filing early has its perks: better access to limited funds and a quicker response from schools on aid packages.

THE BASICS

The Free Application for Federal Student Aid, or FAFSA as it is known, is arguably one of the most critical documents to get help paying for higher education.

Current and prospective undergraduate and graduate students must fill it out annually if they want to get access to federal loans, grants and work-study programs. Some states use the information to determine state-based aid as well.

It is free to apply and can be completed between Oct. 1 and June 30. Until a few years ago, applicants had to wait until January to file the FAFSA, but the U.S. Department of Education bumped up the deadline and made it easier to apply. Still not everyone has caught on yet.

A survey of 2,000 families by Sallie Mae found that only 25% of families filled it out in the first month and 52% waited until January or later. But a number of forms of aid — such as scholarships, grants and work-study aid — are awarded on a first-come, first-served basis, so it pays to move quickly, said Rick Castellano, a spokesman for Sallie Mae.

Some students may also want to complete a CSS Profile, which about 400 private and state schools use to determine institutional aid.

The CSS can also be completed as early as Oct. 1 but deadlines vary by school. It requires much of the same information as used on the FAFSA. Unlike the FAFSA, it costs $25 to complete the profile for one school with additional fees for further schools. The cost might be waived for certain students in need.

HOW DOES IT WORK?

Anyone who is planning on pursuing higher education should fill out a FAFSA to see what kind of aid they’re eligible for.

It can be completed online at studentaid.gov/fafsa or via the myStudentAid app released last year. Students and their families will need Social Security numbers, recent tax returns, some basic financial information, as well as a list of schools they are interested in and other basic information.

Students should check the websites of their prospective schools to find out if they need to complete a CSS profile and other school-specific paperwork or deadlines.

WHAT HAPPENS NEXT?

After you’ve completed the FAFSA, the U.S. Department of Education will process your application within a few days (or around a week if you submitted on paper.) Once processed, you’ll get a copy of your student aid report, or SAR, which summarizes the information you provided. Review it and make sure all information is accurate. If there are any errors or omissions, complete or correct those as soon as possible.

The SAR will include your expected family contribution, a figure that determines your eligibility for aid. The SAR is sent to the schools you listed and each school will review and determine what aid, if any, it can provide. You can list up to 10 potential schools on the FAFSA.

Castellano notes that to be considered for state grants, some states require you to list state schools first.

If you feel that your family’s financial circumstances are unusual or if they change dramatically after you file the FAFSA, contact the financial aid office at the schools you’ve applied to. They can update the information before making a decision.

The sooner you apply, the sooner a school might reply with their aid package too, said Eva Dodds, a director at Collegewise.

“It’s really hard to look a student in the eye in June and say ‘Gosh I wish you had applied in November,” Dodds said.

“The earlier you apply, the more those financial aid officers can do, they need your data to know what they can do for you.”

rn% endblock %","start":"https://users.startribune.com/placement/1/environment/3/limit-signup-optimizely/start"},{"id":"limit-signup","count":12,"action":"ignore","mute":true,"action_config":"template":"% extends "grid" %rnrn% block heading_text %Youu2019ve read your 10 free articles for this 30 day period. Sign up now for local coverage you wonu2019t find anywhere else, special sections and your favorite columnists. StarTribune puts Minnesota and the world right at your fingertips. % endblock %rnrn% block last %rn parent() rn# limit Krux pixel from https://www.squishlist.com/strib/customshop/328/ #rnrnrn% endblock %","start":"https://users.startribune.com/placement/1/environment/3/limit-signup/start"},"id":"meter-desktop-331","count":10,"action":"ignore","mute":false,"action_config":false,"start":"https://users.startribune.com/placement/1/environment/3/meter-desktop-331/start","id":"PDA991499opt","count":9,"action":"ignore","mute":true,"action_config":false,"start":"https://users.startribune.com/placement/1/environment/3/PDA991499opt/start","id":"limit","count":8,"action":"inject","mute":false,"action_config":"template":"

rnrnrnrn

rn

rn

rn rn

rn t

rn SUBSCRIBErn Already a subscriber? Log in.rn

rn

All Star Tribune readers without a Digital Access subscription are given a limited number of complimentary articles every 30 days. Once the article limit is reached we ask readers to purchase a subscription including Digital Access to continue reading. Digital Access is included in all multi-day paper home delivery, Sunday + Digital, and Premium Digital Access subscriptions. After the 1 month Premium Digital Access introductory period you will be charged at a rate of $14.99 per month. You can see all subscription options or login to an existing subscription herern

rn rn

rn

rn

rn

rn

rn","start":"https://users.startribune.com/placement/1/environment/3/limit/start"},{"id":"nag","count":7,"action":"lightbox","mute":true,"action_config":{"height":null,"width":"630px","redirect_on_close":null,"template":"% extends "shell" %rnrn% block substyles %rn

rn% endblock %rnrn% block page %rn#rnrn limit - count - 1 rnrn form.flow_form_open(nextAction: 'firstSlide', null, null, '_top') rn form.btn('Save Now') rn form.flow_form_close() rnrn

rnrnrnu2022 rnrnrnrn#rn

rn

rn

You have limit - count - 1 articles left

rn

rn rn u00a0u00a0u2022u00a0u00a0rn rn

rn

rn

rn

rn Save More Todayrn

Over 70% off!

rn

rn

rn

rn

99u00a2 for first 4 weeks

rn form.flow_form_open(nextAction: 'firstSlide', null, null, '_top') rn form.button('Save Now', 'btn nag-btn') rn form.flow_form_close() rn

rn

rn% endblock %rnrn% block last %rn parent() rnrn% endblock %"},"start":"https://users.startribune.com/placement/1/environment/3/nag/start"},"id":"x","count":4,"action":"ignore","mute":true,"action_config":false,"start":"https://users.startribune.com/placement/1/environment/3/x/start","id":"multi-start","count":3,"action":"fly_in","mute":true,"action_config":"location":"bottom_left","slide_direction":"bottom","group_id":null,"display_delay":"0","collapse_delay":"10","template":"

rn

rn

rn

rn u00d7rn

rn

rn

From just

rn

$3.79 99u00a2 a week

rn Save nowrn

rn

rn

","start":"https://users.startribune.com/placement/1/environment/3/multi-start/start"]};


Continue Reading
Partners
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

More signs emerging of an economic slowdown in Colorado, state forecasters warn – Canon City Daily Record

Published

on

By


State economists are trimming their forecasts for economic growth and tax revenues after business spending and exports declined more than expected this summer.

But they aren’t calling for a downturn yet, given the continued strength in hiring and consumer spending.

“We are not forecasting a recession, but recession risks remain elevated,” Meredith Moon, an economist with the Colorado Legislative Council, (CLC) told members of the legislature’s Joint Budget Committee on Friday.

Trade tensions and slower growth abroad are weighing on economic activity in the U.S. and Colorado. Higher tariffs and a stronger U.S. dollar have contributed to a 6.4 percent drop in Colorado exports this year through July, Moon said in a quarterly briefing.

Some Colorado producers are getting hit much harder — wheat exports are down 56 percent year-to-date, corn exports are down 44.5 percent, and animal hide exports are off 38.4 percent.

Nor are consumers abroad drinking more Colorado alcohol to ease their worries. Beer exports from the state are down 37.4 percent and whiskey exports are off nearly 80 percent.

But compared to other states, Colorado’s economy is among the least dependent on exports, putting it in a better spot to weather a trade war.

“We have fairly limited exposure to foreign markets,” said Kate Watkins, chief economist with the CLC.

And the employment situation report from the Colorado Department of Labor shows continued hiring, with a robust 9,000 nonfarm jobs added in August versus July.

Hiring between June and August was revised higher from an initial estimate of 7,200 to 10,000, something that doesn’t line up with a contraction.

The state’s unemployment rate fell to 2.8 percent in August from 2.9 percent in July and 3.4 percent a year ago. Over the past year, Colorado has had one of the biggest percentage-point drops in its unemployment rate of any state.

A tight labor market is resulting in stronger wage gains and leaving consumers more confident about spending.

“The current economy is being driven by consumer spending,” said Luke Teater, deputy director at the Office of State Planning and Budgeting. “Consumer spending has been strong. We expect that to continue.”

And although home price gains are slowing, homeowners in Colorado continue to see some of the strongest home equity gains in the country, according to CoreLogic.

Only 1.75 percent of Colorado homeowners were behind on their mortgage in the second quarter, the best showing in the country, according to Black Knight, a real estate information provider.

But there are several risks. If business activity contracts, it is only a matter of time before hiring follows. A national manufacturing index showed its first decline since 2015 and short-term interest rates are lower than long-term rates, one of the most reliable indicators of a coming recession.

Home price appreciation is slowing in metro Denver, developers are adding fewer apartments and auto dealers are struggling to move as many cars and trucks as they did last year.

State forecasters don’t expect the brief spike in petroleum prices because of a bombing of Saudi oil facilities last weekend to be sustained. If demand globally continues to weaken, producers in the state, already struggling, will be hurt.

Last week, the city of Denver reported that sales tax collections rose at a 4 percent pace in the first half of the year compared to a 7 percent pace last year, linked to slower construction spending and fewer automobile purchases.

Slower economic activity has caused economists at both the CLC and OSPB to scale back their projections for state tax collections, although the two groups disagree on the amount.

The more optimistic OSPB forecast is expecting general fund revenues, after increasing 7.3 percent last fiscal year, to grow a tamer 4.1 percent this fiscal year.

The state is expected to collect $44.1 million less in its general fund this year than what was forecast in June, and $109.5 million less next year.

“The most likely scenario is a slowdown, not a contraction,” said Lauren Larson, budget director at the OSPB.

The CLC is projecting a $76.3 million drop in general fund collections this fiscal year versus what it estimated in June, and a $120.9 million haircut next year.

Surprisingly, the revenues collected last fiscal year, ended June 30, are coming in $76.1 million below the June forecast, according to the CLC.

In the state’s favor, the surplus due back to taxpayers under the Taxpayer Bill of Rights or TABOR will provide a cushion of sorts. If revenues continue to come in lower than expected, those refunds will disappear before spending gets cut.

Watkins said that much of the slow down appears to be centered in the areas that have enjoyed the strongest growth this decade, while other areas that struggled are still seeing an acceleration.

“We are seeing quite a bit of slowing in the Front Range, especially Denver,” she said. “There’s been a pick up in activity in other parts of the state.”

Continue Reading

Business

The market rotation this month may have been driven by a technicality

Published

on

By


A trader works at the New York Stock Exchange in New York.

Wang Ying | Xinhua News Agency | Getty Images

What exactly happened during the “once in a decade” stock market rotation earlier this month that rocked investors? It might’ve just been a one-off technical move and not based on fundamentals.

A huge rotation out of momentum into value names took place suddenly last week. Many read the phenomenon as a warning sign as stocks with superior growth have led the market’s bull run in recent years and said a rebound in interest rates was the catalyst. However, the reversal in momentum, which seemed to abate this week, could be explained by a sudden stop in tax loss harvesting, some on Wall Street said.

The idea is that investors often sell losing stocks to lower their tax bill from the capital increases, a technical move that’s quintessential of a momentum trade — chasing winners and dumping losers. The amount of such activity might have decreased significantly last week due to speculations the Trump administration would pass a bill to reduce capital-gain taxes, therefore reducing the incentive to sell their losers.

“It’s quite possible some of the dominant robo advisors could have assumed that the U.S. administration would indeed follow through with its proposal on Sept. 9, and decided to change their optimization to take this into account,” Barclay’s head of equity derivatives strategy Maneesh Deshpande said in a note on Wednesday.

President Donald Trump earlier this month floated a proposal to tie capital gains taxes to the inflation rate, which could lower the taxes investors pay on profits from selling assets. He eventually ruled out such a plan on Sept. 11. But the discussion around the proposal last week coincided with the change in stock leadership that shocked many investors.

Tax loss harvesters might have stopped selling losers and adding winners on the prospect that capital-gains taxes would go down, which could make tax loss selling less beneficial. Such a change could have caused the downturn in momentum due to less selling of falling stocks and less buying of rising names.

The amount of active tax loss harvesting has ballooned over the years as robo-advisers, which automatically allocate assets in a tax efficient way, gained popularity on Main Street. Robo-advisers now manage about $1 trillion assets, up from $240 billion in 2007, according to Barclays.

“Of course, it is also entirely possible that some other investors would have put on the trade in anticipation of such a proposal,” Deshpande said.

The iShares S&P 500 Value ETF hit its highest level since January 2018 on Sept. 11 as the rotation hit its pinnacle.

Value, cyclical companies with low prices relative to earnings and book values tend to be sensitive to economic growth. However, embracing the group without a material change in the economy doesn’t make a lot of sense, analysts warned.

“Absent an improvement in underlying economics, we believe that the recent shift in leadership is unlikely to persist,” Jonathan Golub, chief U.S. equity strategist at Credit Suisse said in a note Monday.

Continue Reading

Business

The rise of solar power

Published

on

By


Elon Musk may have promised the world Tesla solar roof tiles in 2016, but turns out the solar industry may not need the upgrade.

The industry has been growing exponentially thanks to plain old solar panels. You can see the evidence both on people’s rooftops and in the desert, where utility-scale solar plants are increasingly popping up. Here in the U.S., of all new power capacity added to the grid in 2018, about 30% was from solar.

But the picture is not all rosy. Solar power is intermittent. The sun isn’t always shining, and the price of storage solutions like lithium ion batteries is still relatively high.

These are real problems that the industry needs to tackle if solar is going to reach its potential. However, if the recent past is any indication, solar power is going to help lead the transition to a carbon-free future, and it might do it faster than we all expected. Watch the video to learn more.

Continue Reading

Trending

We use cookies to best represent our site. By continuing to use this site, you agree to the use of cookies.
Yes