Do you know about the critical 'base year'? If you don't, it could cost your family hundreds of dollars in financial aid.

The base year is the year prior to the year your student will be heading off to college. For example, if your student is going to college in the fall of 2010, the base year is 2009. 

Why is this year important? It's what your financial aid is based on. The tax return you file for the base year is what the government will look at to determine your financial aid eligibility and calculate your Expected Family Contribution (EFC). 

Financial decisions during this year should be carefully considered. For example, assets in the student's name are assessed at a much higher percentage than assets in a parent's name. During the  base year you want to stay away from putting assets in your student's name as much as possible. 

Being aware of the base year and knowing what to do and not to do financially during this year are critical to maximizing financial aid!

Questions about the base year? Don't hesitate to contact College Advantage. We're here to help!