HOW TO APPLY FOR FEDERAL FINANCIAL AID. FAFSA
FAFSA (Free Application for Federal Student Aid) is one of the lynch pins of the American college student financial aid system. Without it many students—particularly those from economically disadvantaged backgrounds—would struggle to attend college.
The four most common types of financial aid distributions under FAFSA are the Pell Grant, Stafford Loan, Perkins Loan and Federal Work Study Program. Each has its own merits.
The Pell Grant can be as much as $5,550. Many awards will be substantially lower based on financial need.
The Stafford Loan is popular with FAFSA as well. Of course, being a loan it actually has to be paid back.
And then there is the Perkins Loan. This is similar to the Stafford Loan only the lender is the school the student attends.
Through the Federal Work Study Program students are given incentive to pay for their own college. Up to seventy five percent of wages from a part-time job can be reimbursed by the government.
So how does one unlock all these untold riches? It all starts with the FAFSA.
The United States Department of Education starts accepting the applications on the first of January. Money is awarded on a first-come, first-served basis.
FAFSA is generally the first stop when shopping for money for college. When you complete the application you are eligible to be considered for nine federal student aid programs and about six hundred other types of state or institutional financial aid. In many ways FAFSA serves as one-stop shopping.
The FAFSA process is not for the faint of heart. The application requires you to answer about one hundred and thirty questions that will determine your EFC—expected family contribution. Seems fair when you consider the end result may be thousands in no-strings-attached money for your education.
A very large part of the FAFSA EFC comes down to household income and assets. Just about every student will be eligible for some type of aid—mostly it depends on whether it will come in the form of a loan or a grant. Obviously a grant would be preferable because you don’t have to pay it back.
After you’ve completed your FAFSA you may request what is called an SAR—student aid report. This will summarize your responses and help you understand the results.
There is no reason any student preparing for college should not complete the FAFSA process. Most Americans in good standing with government agencies will qualify for something.
Exactly who does qualify for financial aid through FAFSA? You have to be a United States citizen or a U.S. National. Some non-citizens may be eligible although this is becoming increasingly complicated in today’s political environment.
Some other requirements include having a high school diploma or GED and you must be registered with the selective service if you are a male between the ages of eighteen and twenty five. The government also expects you to promise—in writing—that you will only use the money for educational purposes.
Start your FAFSA sooner rather than later and you may just be pleasantly surprised by the results.