CRACK THE CODE Benefits and Drawbacks of the Latest College Aid Forms
Other changes include expanding the number and potential size of Pell Grants. The maximum Pell Grant will rise to $8,145 in the 2025–2026 academic year from $7,395 in 2024–2025. While the SAI is calculated based on a student’s family size, income, and assets, eligibility for Pell Grants also considers a family’s financial standing according to federal poverty guidelines. In other changes, the revised FAFSA relies on federal tax information provided by the IRS rather than answers provided by applicants. It also asks fewer than 50 questions, compared with 108 in the previous form. While many people labor over the form’s detailed questions, the most common mistake is not filling out the FAFSA at all. This omission excludes students from eligibility for numerous subsidized loans and grants, scholarships, and other aid from the college or university they attend. Many students wrongly assume they won’t be eligible for aid because they or their parents make too much money or their grades aren’t high enough. Plenty of circumstances can qualify applicants for grants and awards, from being the first in their family to attend college to being in the military, being unemployed, or planning to major in a specific in-demand subject. With numerous sources of financial aid in play, the potential rewards of completing the FAFSA are well worth the time invested!
Applying for college financial aid has been a moving target recently amid changes in federal rules. One new loophole is good news for families, however. For the first time, grandparents can set aside money in tax- sheltered accounts to help pay a grandchild’s college expenses without jeopardizing the student’s eligibility for other financial aid. The benefits could be significant for families planning, saving, and working together toward college-funding goals. The primary tool to qualify for federal aid and other sources of help is the Free Application for Federal Student Aid (FAFSA). The latest version of FAFSA does not require students to report distributions from grandparent-owned 529 college savings plans. In the past, those distributions could reduce a student’s financial aid by half of a grandparent’s contribution. Family members, including grandparents, are playing a growing role in covering soaring college costs. Undergraduate students cannot borrow more than $5,500–$12,500 a year in federal subsidized and unsubsidized loans, depending on their school year and whether they rely on their families. This nearly always falls short of the average annual public university tuition
of $11,000 for in-state students, $24,500 for out-of-state students, and $43,500 for private college students. Parents are shouldering an increasing share; 11% take out federal parent PLUS education loans, borrowing an average of $40,000 per parent as of 2020. Other changes in the FAFSA form have subtler implications for families. The government no longer considers the number of students one family has in college simultaneously to determine eligibility. This is bad news for families with multiple children who want to attend college at the same time. In another change, the latest FAFSA substitutes a new measure, the Student Aid Index (SAI), for the Expected Family Contribution measure used in the past. The SAI ranges from -1500 to 999999, and the lower it is, the greater the likelihood a student will get need-based financial aid. States’ 529 plans, named for Section 529 of the Internal Revenue Code, function like a kind of 401(k) account for education by deferring taxes on investment gains on savings for designated educational purposes. States began to develop these plans in the 1980s to encourage families to save for college, and all states now sponsor some version of a 529 plan.
From History-Maker to Horrific Bomb
THE SHOCKING SEQUEL SLUMP OF ‘JOKER 2’
Released in theaters last October, “Joker: Folie à Deux” was supposed to be the biggest box office hit of 2024. The big-budget sequel to the first R-rated movie in history to earn more than $1 billion in ticket sales, the film boasted two previous Oscar winners in leading roles, a multimillion-dollar marketing budget, and the support of legions of fans who couldn’t wait to experience it. Then, it all went terribly wrong. Here’s why. Reviving a Legend For decades, comic book fans have relished the devilish exploits of Batman’s arch nemesis, The Joker. The onscreen portrayal of The Joker took a grim turn in 2008’s “The Dark Knight,” which saw the late Heath Ledger take the character in a darker and more sinister direction. Eleven years later, actor Joaquin Phoenix upped the ante in “Joker,” a gritty and violent psychological thriller that presented the title character at his most disturbing. Despite its R-rating, the movie resonated deeply with audiences, becoming the first in its genre to surpass $1 billion in ticket sales and scoring Phoenix an Oscar for Best Actor. A sequel was all but inevitable.
Sinking the Ship At first, everything about “Joker: Folie à Deux” appeared to be a home run. Phoenix was back in the title role, and none other than singer Lady Gaga — herself an Oscar winner via the 2018 remake of “A Star Is Born” — was cast as the notorious Harley Quinn. The film was given a $190 million budget, much more than the $55 million committed to producing its predecessor, and Hollywood braced itself for its latest blockbuster. That was, of course, before the reviews came in. Inexplicably, the sequel to one of the darkest films of all time was produced as a musical. This head-scratching move didn't sit well with critics, who swiftly lambasted the production. By the time the movie left theaters, it had earned just over $206 million worldwide — more than 75% lower than the previous film’s sales. Even worse, “Joker: Folie à Deux” lost millions when marketing and other expenses were factored in. Even with its undisputed star power and foundation of success, the film failed miserably by ignoring a simple yet essential rule of Hollywood (and any business): Never mess with a hit formula.
2 ∙ www.Roberts.cpa
Published by Newsletter Pro • www.NewsletterPro.com
Made with FlippingBook Ebook Creator