It's time to file your FAFSA - Free Application for Federal Student Aid

Nation,

It’s that time of year again, it’s time to file the FAFSA, the Free Application for Federal Student Aid which most colleges require that you file in order to determine your qualification for financial aid.  If you are attending a private college you may be required to file a CSS/Financial Aid Profile, in addition to the FAFSA.

To get started with the process print the worksheets here.   Gather your data and start completing the application.   The annual process for FAFSA applications starts on January 1^st each year (the first day that an application can be filed).   Applications are considered on a first-come, first served basis, so it is in your best interest to get an application in as soon as possible, preferably in the first two weeks of the year.   You can submit estimated information from last year’s tax returns and include any anticipated income changes as a place holder.   When you have completed your tax return – edit your application with your actual information.  

There are federal and state deadlines for applying.   Many schools have a priority date by which your FAFSA should be filed in order to be sure you are considered for available federal aid.  Contact your school to determine its priory date.  Remember that the earlier you apply the better chance you will have to obtain grant funds as grant funds are often limited and the majority of funds will generally be applied to early applicants.    

If you are hesitating to file the FAFSA, because you think your income may be too high and that you probably will not qualify for federal financial aid, you should know that the Expected Family Contribution – the amount each family is expected to contribute (EFC) is generated based on your unique combination of income and assets.   The cost of attendance (COA) of college also plays a significant part in determining whether the aid you may qualify for, will reduce your out of pocket costs.  Let’s say your EFC is calculated as $20,000, and Parent A’s cost of attendance at a private college is $45,000 – then Parent A may be eligible for $25,000 of financial aid,  and if Parent B’s cost of attendance at a public college is $22,000 – then Parent B may only be eligible for $2,000 of financial aid.  Both Parent A and Parent will need to write a check for the initial $20,000, but Parent A may very well get help in paying the remaining $25,000, essentially cutting the cost of college in half.   Parent B however may only get some assistance for the remaining $2,000, so essentially almost footing the entire bill for a public college.   That scenario is something to consider when choosing a college.    One should be aware however, that in many cases unless one qualifies (based on need) for grant money or subsidized loans, the bulk of financial aid will come in the form of loans.  Parents are often surprised to see that loans are the lion’s share of their financial aid offer, particularly when the school’s brochure indicates that they will ensure that financial aid will be available for all your costs. 

Even if your income doesn’t qualify you for grant aid, or Stafford loans, the Parent Plus loans generally carry a lower interest rate than private loans and they will generally have less tortuous repayment conditions.  

You should also note that the FAFSA must be filed each year, your EFC does not carry over from year to year.