Why Do Some Merit-Based Scholarships Require the FAFSA?
I am a 38-year-old student who returned to junior college after being laid off and being unable to find a comparable job. Because I was a “good saver” in my 20’s, I was able to do this while only working part-time. Approximately 60% of my expenses are paid with my savings. I am ready to transfer into a 4-year institution. However, I am concerned that I might not receive any financial aid because my savings are now held exclusively in a CD, not a qualified retirement plan. My prospective college initially informed me that I qualify for a substantial performance-based scholarship based upon my 4.0 GPA. But they will not confirm this until I complete the FAFSA. What does one have to do with the other, and is there anyway for me to protect the savings I have left? Shouldn’t I be able to benefit from performance-based scholarships without disclosing my financial information? Have I made a big mistake by keeping my retirement money in a CD? — L.P. When colleges offer merit-based aid, they al
