There is no set maximum income when applying for financial aid.
The federal government and colleges allocate financial aid based on the information reported on the Free Application for Federal Student Aid (FAFSA). There is no hard maximum income for aid eligibility because the FAFSA takes many factors into account. You may qualify for several types of aid, some of which have no income requirement at all. You'll need to understand which factors impact your eligibility and which types of aid are available to best plan for financing your college education.
Income and Assets
Statistically, 95.4 percent of Pell Grant recipients for the 2007-08 school year had an adjusted gross income of less than $50,000, according to FastWeb. Assets, such as your savings, checking and investment accounts, in addition to your income, are considered when you apply for financial aid. Significant cash savings can detrimentally affect your eligibility. In contrast debts, such as your mortgage or credit cards, are not considered. It may be advantageous to pay off any credit card debt prior to filing for financial aid, as this will lower your reported savings in addition to saving you interest.
Students in College
The number of students attending college in your household is one of the largest factors in determining eligibility for aid. Your expected family contribution is divided across all students attending college. A parent may qualify as a student provided he is actively seeking a degree. If you have multiple people in your household considering attending college, synchronizing attendance greatly increases your chances of qualifying for aid.
Grants
Requirements for federal grants vary, and some grants have no need-based component. The Pell Grant can provide a student up to $5,500 a year and has a strict need-based requirement. In contrast, any student whose parent died as a result of military service in Iraq or Afghanistan is automatically eligible for the Iraq and Afghanistan Service grant. The TEACH grant is available to students at participating universities who agree to teach low-income students for four years after graduation and has no need-based requirement.
Loans and Work Study
The Federal Work Study program has a more lenient income requirement than the Pell Grants. Subsidized and unsubsidized Stafford Loans have no income requirement for eligibility. Undergraduates may take out up to $31,000 in these loans over the course of their education, with the amount allowed per year starting at $5,500 and increasing by $1,000 in the second and third years.
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