The most basic requirement for getting financial aid is to apply for it. The place to start is the "Free Application for Federal Student Aid" or FAFSA. Think you won't qualify for aid? Consider filing the FAFSA anyway. Here's why.
The Free Application for Federal Student Aid (FAFSA) is the primary application for government need-based financial aid. Many colleges and scholarships also use your FAFSA information to determine your eligibility for their own need-based aid.
By All Means, File a FAFSA
Filing a FAFSA is worthwhile. Anyone who fills out the FAFSA can, at the very least, get a federally insured, low-cost loan. The 2009 Sallie Mae/Gallup study "How America Pays for Education" reported that 24 percent of families with children in college did not file a FAFSA for the 2008-2009 academic year. Not only did these families miss an opportunity to get a low-cost loan, but many of them missed out on need-based aid, such as Pell grants and federally subsidized loans.
The Results of Filing a FAFSA
Information from your FAFSA is used to calculate your Expected Family Contribution (EFC). Your EFC is how much colleges will expect you and your family to pay for college, no matter what college you attend. Your EFC is used to calculate how much federal and state aid you are eligible for. Most colleges also use your EFC to calculate your eligibility for "institutional" aid—aid that comes from their own funds. (If you want to get an estimate of your EFC, use CollegeData's EFC Estimator.)
When to File Your FAFSA
There's a new version of the FAFSA each school year—and you must renew your FAFSA annually to keep getting aid. The first day you can submit the FAFSA is January 1 for the following school year. For example, the FAFSA for the 2010-2011 school year can be filed as early as January 1, 2010. Filing the FAFSA close to January 1 will put you near the front of the line for financial aid.
The critical deadlines to meet are the colleges' priority financial aid deadlines and your state's FAFSA deadline, which usually fall in the early to late spring. For college deadlines, check the financial aid web pages of the colleges you are applying to. For state deadlines, check www.fafsa.ed.gov
The federal FAFSA deadline, by the way, does not fall until June 30 of the year following the FAFSA's release. For example, the FAFSA released on January 1, 2010 will have a deadline of June 30, 2011. This means you can submit a FAFSA at any point during the college academic year. Even if most aid is already distributed, you would then be eligible to obtain a low-interest federal loan for the current academic year.
How to Access the FAFSA Form
You can fill out the FAFSA online at www.fafsa.ed.gov as early as January 1. The online FAFSA greatly enhances your efficiency and accuracy. It identifies and removes irrelevant questions based on your answers to previous questions, and detects and alerts you to errors. You can submit the FAFSA at the click of a mouse and receive a speedy verification that it was received. If you'd like to submit a paper copy of the FAFSA, printable PDF version is available on the federal student aid website, or by calling (800) 433-3243.
If you have limited or no access to the Internet, or you are up against federal or state deadlines, you may access and submit your FAFSA by calling (800) 433-3243. You'll be connected to a live customer service representative who will input your data and submit it for processing.
What the FAFSA Asks
The FAFSA asks for information such as your income and assets, dependency status, and the federal IDs of up to four schools that you'd like to receive your information. (See the tips below for how to add more colleges.) Instructions guide you through every step.
The information you provide must be accurate as of the day you file your FAFSA. If you are a dependent student, the FAFSA asks for the same financial information from your parents. If your parents are divorced or separated, you provide information for the parent with whom you lived more than 50 percent during the past 12 months. If you lived with both parents equally, then use the parent who provided most of your financial support.
Preparing to File a FAFSA
To start the application process you need to go to www.pin.ed.gov and get your Personal Identification Number (PIN). Keep it in a safe place because you will use this PIN every time you access your FAFSA records and renew your FAFSA application.
The FAFSA website provides a list of documents you should have on hand. You and your parents will need income tax information from the previous two years. For example, for a FAFSA filed for the 2010-2011 school year, you will need information from your 2009 and 2008 tax returns. If you have not prepared your latest return, fill it out using estimated information or use a free online tax estimator.
You can prepare for the FAFSA by filling out the FAFSA on the Web Worksheet. It lists all the FAFSA questions in the same order as does the official FAFSA. The worksheet is available on the FAFSA website and may also be available from your high school counselor.
You may be able to get free professional help filling out your FAFSA. During January and February, many states hold "College Goal Sunday," where students can get free, onsite professional assistance filling out the FAFSA form. Visit www.collegegoalsundayusa.org to find specific locations and dates in your state.
Getting the Results: Your Student Aid Report
Within one to three weeks, you will receive your Student Aid Report (SAR), which contains your EFC. You can receive a paper SAR by mail or a link to an online SAR by e-mail. The colleges you listed on your FAFSA also get a copy of your SAR. Once you apply to those colleges they will figure your financial aid package based on your EFC. They may ask for additional financial information in order to allocate their own need-based aid.
Changes to Your FAFSA
Your FAFSA should be accurate as of the day you sign it. If you find mistakes on your SAR, you can send in corrections by using FAFSA's Corrections on the Web at www.fafsa.ed.gov or calling (800) 433-3243. However, changes to your or your family's financial situation that occur after you sign your FAFSA don't count. For example, even if the amount of your savings reduces after you sign the FAFSA, the savings amount you reported on your FAFSA must go into the calculation.
There is no system to appeal to the government for an EFC recalculation. However, you can contact the college's financial aid office and explain your situation to them. You may be able to submit a letter detailing the new considerations, backed up by copies of any relevant documents. Most schools realize circumstances change and are willing to listen. (For more on appealing your EFC, see our article I'd Like More Aid, Please .)
Things to Consider
Order of colleges listed. Every college that receives your FAFSA will see your entire college list in the order you provided. The simplest strategy is to put your top priority college first. If you have no strong preferences, putting your colleges in alphabetical order should make it crystal clear that your list is not based on priority.
Lining up for state-based aid. If you think there is even a remote chance you might attend a public college in your state, put one on your FAFSA list. This will ensure your SAR is sent to your state financial aid program.
Adding more colleges. To arrange for more colleges to receive your FAFSA results, go to www.fafsa.ed.gov and select "add or delete a school code." You can also submit changes by calling (800) 433-3243. Be sure to confirm that the colleges you have previously submitted have downloaded your SAR before replacing them with new colleges.
Selective Service. Males between the ages of 18 and 25 are required to indicate that they are registered or intend to register with the Selective Service.
No blanks allowed. Leaving a question blank could delay your financial aid or make you ineligible. The question most often left blank is: "Have you ever been convicted of possessing or selling illegal drugs?" Answering "Yes" may not totally disqualify you from receiving federal aid, depending on the time, severity, circumstances, and outcome of your conviction. However, not answering at all could delay the processing of your FAFSA indefinitely.
What types of student aid interest you besides grants? This FAFSA question concerns many students. Some are reluctant to select "work-study and student loans" as their answer out of fear they may be obliged to accept those forms of aid. Answering this way, however, only gives permission to the college to include those forms of aid in your package. You can always decline them. If you indicate you are not interested, and decide later in the year that you want a loan or work-study job, you will likely be in store for a lengthy bureaucratic process.
Review before sending. Look the FAFSA over carefully before you submit it. You may be very glad you did.
Keep a copy. If you want to apply for financial aid in subsequent years, you will have to fill out a "Renewal FAFSA." It's helpful to refer to your old FAFSA when filing the new one. You may also have to fill out supplementary paperwork for colleges and scholarships. Since most of these forms ask for the same information as the FAFSA, you'll have those answers ready to fill in.
Verification. Some SARs are flagged for "verification." If this happens, you will need to provide documentation to the college for some of the information you submitted on the FAFSA. One commonly requested document is your latest tax return, if it was not filed before you sent in your FAFSA. (One way to avoid verification, which can delay aid processing, is to file your taxes before filing your FAFSA.) Selection for SAR verification can be random, or based on incomplete, estimated, or inconsistent data. Save the records and materials that you used to complete the FAFSA just in case you are selected.
Note: Financial information provided on this site is of a general nature and may not apply to your situation. Contact a financial or tax advisor before acting on such information.
