The New Jersey Credit Union League Reality Check Conference is on at Harrah’s Atlantic City. I am really looking forward to being a part of this awesome event.

This promises to be another quality Credit Union conference, located at a beautiful venue, and dominated by critical topics presented by top speakers.

Some of the key areas covered in the conference include:

Credit Union Sustainability

The Digital Age and Financial Services

Identity Theft Prevention

Public Relations

Finally, a topic I am really looking forward to speaking on:“Youth and Money – and how credit unions can become their superheroes”

The Credit Unions are stepping up big time to meet the modern demands of our new economy. Financial services provided with friendly help right in your own neighborhood and beyond; it’s a beautiful thing.

Looking forward to meeting many wonderful people at the conference.

When completing the FAFSA, parents and students must list income and asset information. This normally includes information found on the 1040 tax return, or by consulting other important financial documents to transfer the data to the online application.

One of the questions covers the area of cash assets. Cash assets are typically hard to track or trace, so the FAFSA phrases the question as follows….

“As of today what is your parent’s total current balance of cash, savings and checking accounts?”

and

“As of today, what is your total current balance of cash, savings and checking accounts?”

The key part of these statements is “As of today”, leaving some flexibility for the student and/or parent to answer. If indeed there were no cash available in any of these accounts on the day the FAFSA were filed the correct answer would be zero.

So logically speaking, it would behoove the applicant to have as little cash available as possible on the day the FAFSA is filed to help maximize financial aid eligibility.

Here is a list of things that students and/or their parents and family can do with their cash instead of keeping it in the bank only to be listed as an asset on the FAFSA.

1. Pay off credit cards: If you have any credit card debt, and are carrying extra cash in your checking or savings, go ahead and make a bigger payment towards that debt just before filing the FAFSA. The FAFSA does not ask any questions about personal debt, they only care about what cash is on hand the day the FAFSA is filed. Instead of listing this cash as an available asset, it should be used to reduce personal debt. It does not make sense to be penalized by the FAFSA for having cash when one has outstanding debts to be re-payed with interest.

2. Maybe it’s time to upgrade the computer/laptop/smart phone: Let’s say personal debts are well managed, but your computer is worn out and behind on capabilities, kinda like the relic pictured above. It may be time to make an investment in technology. There are some good deals for college students looking to buy computer technology, especially online. Instead of claiming cash on the FAFSA, it may be time to get a new computer to help enhance your educational experience.

3. Use it for transportation or other miscellaneous expenses: Getting equipped for college may involve some new clothing, or exercise equipment, or a used car (It’s new to you!). Again, if cash is available and there are useful items you need for education, it’s better to spend the money than claim it on the FAFSA.

Easy on the cash flow, Uncle Money Bags

4. Relatives, please hold off on any large cash gifts: Uncle Bobby is a successful business man, and wants to help his nieces and nephews with their college costs. When he heard that his niece Stephanie was admitted and planning to attend an awesome college next year, he thought about sending her a check for $3,000 to help with expenses. However, when he realized that extra cash like that would end up getting claimed on the FAFSA, he held back on sending the money. Instead, he let Stephanie know to make a list of necessary supplies and items, and he would help her to buy those items as she needed them. It’s as simple as ordering online, and having deliveries sent to the dorm. This way Bobby can make sure the money is used for educational purposes, and Stephanie does not get penalized by the FAFSA for having extra cash.

5. If any cash must be claimed, it should be in the parent’s name: Be advised that the value of cash assets on the FAFSA is weighed more heavily under the student’s name than under the parent’s name. So if claiming cash is unavoidable, make sure it is claimed under the parent’s name only.

Read up more on FAFSA filing tips from my prior article. FAFSA: Understanding Parent and Student Assets

February kicks of Financial Aid Awareness month, a time when current and soon to be college students must follow through on the time honored tradition of completing the Free Application for Federal Student Aid aka The FAFSA. The FAFSA is the first stop for students looking for financial assistance to help cover the high costs of college.

Go to www.fafsa.ed.gov

Filing the FAFSA is critical for students looking to start college in the Fall of 2012, as financial aid awarded is a major factor for students considering which college to attend.

It is equally critical for continuing students to complete their FAFSA renewals in a timely manner to retain financial aid eligibility for next academic year as well.

Quick FAFSA filing tips:

1. Know your deadline so you can file ahead of schedule: Each school and every state may have a different date as to when a FAFSA must be filed in order to qualify for maximum funding eligibility review. Common dates can range from March 1 into April, but some schools require the FAFSA to be filed as early as February 15. Make sure to file the FAFSA early so there is no question of timely delivery.

2. No tax return, no problem!: The FAFSA requires parent tax and asset information along with the student if they also file a tax return. However, this early in the year, many families have not yet completed their taxes. This does not jibe well with early deadlines for the FAFSA, however this is easily manageable. If your 2011 tax return is not yet ready, go ahead and file the new FAFSA using estimated numbers. If in 2011 your earnings are about the same as what they were in 2010, you may be able to use your old 2010 taxes to guide estimations. Once the actual tax returns are filed, you can log back onto the online FAFSA to make corrections and adjustments.

3. Remember your pin to renew your FAFSA every year: In order to electronically sign your FAFSA you must first authenticate your identity and get registered for a personal identification number, aka a PIN. You must register for this PIN by completing a 3 step process at www.pin.ed.gov. This PIN can be used to electronically sign each FAFSA every year, so make sure to remember your four digit number to easily renew the application.

If you see this mainpage, you are at the right place to register for the PIN

4. Master the fundamentals, data input them correctly: Make sure you personal information is completely accurate, and re-check it with a different set of eyes. (Parents and children need to work together to help each other) You would be shocked if you knew how many FAFSA’s were filed using incorrect birth dates and social security numbers. When this happens, it creates great confusion in the processing of your application, and will result in a verification request, adding more work for you and leading to my next point…

5. Be prepared for verification: Anywhere from a quarter to half of college students get selected for a process called verification. This is when the school must check the actual tax returns compared to the data originally submitted on the FAFSA, and to correct any discrepancies so that the information is accurate. Be advised that financial aid eligibility may change based on the results of verification review. If the information originally provided on the FAFSA is quite different from the information on the actual tax return, this may cause grants to be canceled. If the request to submit verification documents is ignored, all financial aid will be canceled. The best way to be prepared for this process is to keep copies of all the required forms in a neat folder next to your home computer, so in the event a verification request it can be responded to quickly and efficiently. Some schools will penalize a student for taking too long to submit verification documentation, even if it turns out all the data was accurate. Forms that may be requested in the verification process include but are not limited to:

• Social Security Card
• Driver’s License
• W-2
• Federal income tax returns: 1040, 1040A or 1040EZ
• Foreign tax returns
• Untaxed income records
• Current bank statements
• Current investment mortgage information (Rental property)
• Business and/or farm records
• Records of stocks, bonds and other investments
• Alien registration or permanent resident card (if not a U.S. citizen)