For someone about to start college, it is an exciting phase. New place, new friends and a whole lot of learning. But, the most important question remains - how will you fund these 4 years of college? Student loans, of course. But student loan repayment is a taxing process. If reports are to be believed, Americans owe $1.5 trillion on student loans which is more than what they owe on their credit bills.
But, there’s a respite for students with financial constraints. There are other ways to pay for your college. If you fill out and submit the FAFSA on time, you’ll be eligible for federal financial aid such as grants, scholarships, work study programs etc.
As per the report shared by National College Access Network, only 61% high school grads successfully complete the FAFSA. The remaining 40% misses out on opportunities and probably college because of the lack of financial aid that they could’ve received through FAFSA.
In this article, we shall discuss in detail about the FAFSA aiming to help you answer all your queries and file for FAFSA.
Table of Contents:
What is FAFSA
FAFSA stands for Free Application for Federal Student Aid which helps them achieve scholarships, grants, work study programs etc from the federal government, state government and most colleges and universities. It is a form to be completed by prospective college students to determine their eligibility for student financial aid as well as Expected Financial Contribution. Based on the information provided by the applicant about their age, marital status and other demographic characteristics, FAFSA categorises students into -
Dependent students will need to provide their parents’ income information while filling up the FAFSA. Independent students on the other hand do not have to provide this information but have to provide information of their spouse in case they are married.
The Student Aid Report will be sent to the student to figure out the exact amount of financial aid awarded. The amount can be calculated by subtracting Expected Family Contribution (EFC) from the Cost Of Attendance ( COA).
Also Read: How to Apply for FAFSA as an Independent?
Basically, many students are eligible for one or the other form of financial aid, few students who are not eligible for need-based aid may still be eligible for an unsubsidized Stafford loan.
In addition, to meet the financial need, students must meet certain criteria in order to be eligible for such aid:
Be a U.S.citizen or an eligible non-citizen;
should have a valid Social Security Number;
Should have a high school diploma or GED test result;
Should have maintained a Satisfactory Academic Progress(SAP);
Should not have been found guilty of the sale or possession of illegal drugs while federal aid was being received.
are required to complete the FAFSA as a part of their high school graduation
When to Apply For FAFSA
FAFSA provides financial aid on a first come first serve basis. The sooner you complete and submit the FAFSA, chances are you’ll receive a higher amount of financial aid.
The lines for FAFSA submission opens on 1st October every year for courses for the following year. The deadline for FAFSA submission is 30th June of the same year the academic session ends.
For example, if you are a student who wants to apply for FAFSA for the academic year 2020-2021, the lines for FAFSA are open from October 1, 2019 to June 30, 2021.
It is however advisable that you complete the FAFSA as early as possible so that you have enough time for corrections in case.
How to Fill FAFSA (easy step-by-step guide)
Filling the FAFSA can be taxing and complicated. This section is an easy step by step guide on how to fill up the FAFSA:
Create a Federal Student Aid (FSA) ID:
FSA ID is your unique Identifier. It is an online process and takes just 10 minutes of your time to create an FSA ID. You’ll need it throughout your course duration to complete the FAFSA every year.
Gather All Information Beforehand:
While filling up the FAFSA, you’ll be asked to provide a lot of information. It is advised that you keep all your information and documents ready before you start the application process. The most important information and documents are:
Your Social Security Number
Your family size and family income
Your personal income (in case any)
Your list of selected colleges that you are interested in applying
Provide Student Information
Once you have collected all your information and created an FSA ID, you can now start filling up the FAFSA online at FAFSA.gov. The first step would be to choose the right form which would most likely be the upcoming school year. You have to then fill up the demographic section which will have questions like your name, age and Date of Birth. You’ll also be prompted to enter the school names of your interest so as to optimize your chances of getting maximum financial aid from each school. For the dependency section, you’ll be asked to fill up information that will determine whether you are financially dependent on your parents or not.
Provide Parent Information:
After you’ve completed filling the student section, you’ll be asked to provide information about your parents. Even if you do not stay with your parents, it is a must to fill up this sectio. You will be prompted to fill up their names, mailing address and other information.
Provide Financial Information:
After you complete the parents’ information section, you will have to fill in the FInancial section. You’ll be prompted to fill in the financial information of your household i.e., both your income information and your parents’ income information. You can use the IRS data retrieval tool available on your online FAFSA to automatically pull out necessary data from tax return.
Review FAFSA Application
Once you are done filling out all the information, don’t forget to review your FAFSA for any errors and mistakes. Make sure you double check all the information you provided viz, financial and the schools of your interest.
Submit your FAFSA
Once you’re done reviewing your application, you have to electronically sign in your FAFSA and press the submit button.
How to Calculate Your Federal Student Aid Using FAFSA?
Your financial Aid is determined by the financial aid office of the college or school you intend to / are enrolled in. The amount to be awarded is dependent on your Expected Family Contribution (EFC), enrollment status, your Cost of Attendance and on the school you’ll be attending.
Financial Aid = Cost of Attendance (COA) - Expected Family Contribution (EFC)
Cost of attendance (COA) is the total amount it will cost you to attend school for the entire course period.
EFC is dependent on the information you provide on your FAFSA. It will take into account your family’s taxed and untaxed income, assets and benefits (such as unemployment and Social security), the family size and the number of family member who will be attending college and career in the same academic year.
What happens after submission of FAFSA
After you have submitted your FAFSA, you will receive a Student Aid Report (SAR) within 3-5 working days in case of applicants who have applied through a valid email address. For those without a valid email address will receive their SAR within 7-10 working days via postal address that you have provided in your form.
The colleges that you have applied for through FAFSA will have access a day after it is processed. However, the college authorities might not check your application immediately.
If your application is complete as per the government’s requirement, an EFC will be displayed on your Student Aid Report. In case it is incomplete, EFC will not be displayed on your SAR. Instead it will specify the issues that need to be rectified
How to make corrections in your FAFSA
In case, your FAFSA is incomplete, your SAR will specify the corrections to be made.
You can make the corrections online at fafsa.gov :
You need to log in using your FSA ID , go to “My FAFSA” page , make the necessary corrections, create a save key. Once the necessary corrections are made, review all your corrections, sign and submit your rectified form.
In case you want to make the corrections through an agent with the Federal Student Aid Information centre, you must have the Data Release Number (DRN) with you. The DRN can be located on the confirmation page or confirmation email, on your electronic SAR on FAFSA website or on the hardcopy of SAR , if you have received one.
Top FAFSA Myths - Debunked!
There are a lot of rumours that make rounds. Here, we shall debunk a few top myths about FAFSA
FAFSA is of no use to me. I can’t qualify for Federal Student Aid (FSA) because my parents make too much money.
In order to be eligible for Federal student Aid, remember there is no income cut off. Your financial aid is rather dependent on many other factors like your family size, your course duration, number of family members attending college in the same year etc. When you submit your FAFSA, know that you’re automatically applying for state funds and possibly to your school of choice too. It is important to note that most schools do not consider applications without FAFSA.
FAFSA is useless unless i have good grades throughout
Most federal student aid programs do not take a students grade into consideration. It can only help a student get into a good school/ college and may help with merit-based scholarships. In order to qualify for FSA, you just have to maintain satisfactory academic progress. Every school has a different standard set for “satisfactory academic progress”. Most schools will have a certain GPA set to be maintained in order to qualify.
I only need to fill and submit FAFSA once for my entire course duration
You have to fill and submit the FAFSA every year of your course duration. The financial situation in your household may change from year to year. For example, your siblings may enter college, a family member may lose their job, your parents may win a lottery ticket etc. However, one good thing is you don’t have to start from scratch every year while filing the FAFSA. Some of your information will be carried over every year, just make sure they still hold true.
Filing the FAFSA is confusing and difficult
If you’re ready with all the documents and information, then filing for FAFSA isn’t an uphill task. Remember, FAFSA helps you reap benefits. So, being patient and completing the FAFSA is always rewarding.
Tips on Financial Aid
Submit your FAFSA as early as possible. Most aids are awarded on a first come first serve basis. The earlier you submit your application, higher your chances of getting the most of federal aid.
Fill and submit FAFSA every year.
Review your FAFSA every time before you click on the submit button.
Unlike the common notion that people hold against FAFSA that it is a confusing, difficult and time consuming process, know that FAFSA is the best way to receive financial aid and that many schools and colleges consider applications for college based grants and scholarships only through FAFSA. Filing for your financial need isn’t as tough as people think it to be. It is advised that you do your due research and keep all your information and documents handy before you start your application process.
If you are looking for more Financial aid then don't forget to check the CSS Profile
Also, Read CSS Profiling vs FAFSA.