Gain understanding of FAFSA submission.

1. FAFSA demystified briefly.

The FAFSA, also referred to as Free Application for Federal Student Aid, is the primary form required from students applying for federal financial aid, evaluating their Expected Family Contribution (EFC). Watch the video to uncover the acronym's significance.

2. Determining need-based eligibility

Need-based aid is available when your Expected Family Contribution (EFC), reflecting your family's ability to contribute to college expenses, is less than the cost of attendance. Completing the FAFSA is the key to determine eligibility for such aid.

3. Abstaining from aid application.

If you opt out of filing the FAFSA, you give up the opportunity to receive federal aid, including potentially subsidized federal loans, resulting in the loss of thousands of dollars. It is important to note that many colleges and universities require the FAFSA to determine eligibility for their own grants and scholarships.

4. Steps for initial submission.

Federal aid is subject to limitations and distributed on a first-come, first-served basis, emphasizing the need for early application. Even if a FAFSA has been previously filed, applicants can still submit a renewal or modified FAFSA for updates. Once reviewed by a federal processor, a Student Aid Report is generated, providing an overview of the FAFSA information, and an electronic version is sent to the designated schools.

Requirements for FAFSA and financial aid eligibility

Almost every student is eligible for financial aid, but they need to meet the FAFSA requirements to qualify for federal assistance.

Be a U.S. citizen, or an eligible non-citizen with a valid Social Security number.
Have a high school diploma or GED
Should be registered with the U.S. Selective Service if they are a male ages 18-25.
Promise through FAFSA that the financial aid will be used for educational purposes only.
Not be in default on any student loan or owe any money for any federal loans.
Not be found guilty of possession or selling illegal drugs while being a recipient of federal financial aid.

FAFSA offers popular financial aids, including Pell Grants, Perkins Loans, Subsidized and Unsubsidized Direct loans, and the Federal Work-Study program, which allow students to receive financial assistance and obtain partial payment refunds through part-time employment facilitated by the government.

Getting primed and prepared

Gathering substantial data is crucial for FAFSA completion as it provides insight into a family's financial capacity to support college expenditures.

Social Security numbers for the students and parents
Driver’s license number if applicable
Alien Registration Number for student, if applicable
Federal tax returns or tax information for students
Federal tax returns for spouses, if students are married OR returns for parents, if students are dependent
Records of income not subject to taxation, like child support or veterans non-educational benefits.
Bank balances, including checking and savings accounts
Investment information

When completing the FAFSA form, it is important to take your time and proceed carefully, given its complexity. Planning for about 30 minutes should provide enough time, considering the average completion time of 22 minutes.

Filing avenues to consider

The FAFSA's adoption of an online format reflects the wider trend of digitizing critical functions that were previously reliant on manual pen-and-paper approaches.

Electing to complete the form using this approach can be advantageous, affording students with:

A faster turnaround time
Automatic error correction
Online help
Ease of use
Income estimation tools, in case taxes aren’t done yet
Retrieval tools that can pull info directly from the IRS

Despite the fact that 1 in 5 households did not have internet access in 2013, students can still complete the FAFSA online by utilizing computers provided in college financial aid offices, which is a more secure option than using public computers with unsecured internet access.

Navigating common pitfalls

Despite students' sincere intentions, grappling with the challenging FAFSA form can result in errors and frustrations.

Often missed missteps

Many mistakes revolve around investments, as some students neglect to mention their parents' investment holdings, while others include investments that FAFSA administrators consider unnecessary, such as:

The value of the home the family lives in
Life insurance plan values
Amounts held in retirement accounts, such as 401k plans, IRAs or pension funds
Amounts held in Keogh plans

While the majority of FAFSA submissions are error-free, around 22% of applicants make mistakes in their submissions.

Homes with small enterprises

Considerations differ for families owning businesses. Given the widespread presence of over 23 million small businesses in the United States, many families are part of this demographic. While families with small business ownership must disclose their business's value, an exemption may apply to those with less than 100 employees. Students from such families should pay careful attention to the guidelines to navigate the process accurately.

Basic missteps

Mistakenly include immaterial financial information that doesn't substantially impact their eligibility for financial aid.

Forget to sign the document
Omit their Social Security numbers
Leave themselves out of the number of people living in the household
Leave some items blank

While they may seem inconsequential, these errors can significantly impede a student's access to essential financial support. Engaging in a meticulous review of the paper form and conducting repeated checks serves as an effective strategy to prevent such mistakes. Additionally, opting for the electronic form ensures that families are alerted to any errors before proceeding or submitting the form, helping them avoid these pitfalls.

Seek guidance from professionals.

Many students find the task of completing the FAFSA burdensome, particularly due to its recurring nature and confusing requirements. However, there are educational resources endorsed by the U.S. Department of Education that can offer assistance to students facing difficulties.

Click on the “Help and Hints” button sitting next to each question in the online form.
Click on the “Need Help?” button sitting at the bottom of the online form.
Click on the “Help” item on the FAFSA website, and chat in real time with an expert.
Schedule a meeting with an advisor in the financial aid office of the institution the student has chosen.

Although it may pose a minor inconvenience, the FAFSA can be completed within a reasonable timeframe and is an annual requirement, which is quite manageable. Moreover, once you submit the FAFSA, you'll be making significant progress towards securing the vital financial aid you need.

FAQ

In my quest for FAFSA updates, I learned that the EFC, or Expected Family Contribution, plays a key role in evaluating my federal aid application and determining the amount of financial assistance I may be eligible for.

The Estimated Family Contribution (EFC) is an essential component of the federal financial aid application, as it impacts the amount of assistance a student can obtain. The formula used to calculate federal aid considers the anticipated financial contribution from the student's family towards the overall cost of attending college. Dependent students are required to provide their parent's W2 and income tax information, while independent students need to include their own financial details.

Are there any FAFSA application deadlines that I should be mindful of?

Submitting the FAFSA form at your earliest convenience is strongly advised due to the time-sensitive nature of certain required documents, such as your parent's previous year's 1040. Furthermore, colleges typically set their own deadlines for the FAFSA, usually falling between January 15 and April 15. It is important to consult your school's financial aid office to obtain the precise dates. The Department of Education also enforces specific filing deadlines, with the current deadline for the 2017-2018 academic year set at midnight CDT on June 30,

It is important to apply for FAFSA financial aid even if you don't believe you are eligible, as eligibility determination involves intricate evaluations considering various factors that could potentially make you eligible for assistance you may not be aware of.

Do not assume that a high family income automatically excludes you from financial assistance; it's essential to apply regardless. Many assistance programs exist, and you may be eligible for some of them regardless of income, so filling out the FAFSA will help determine your eligibility.

FAFSA renewal procedure explained.

The FAFSA renewal process is an annual requirement for all financial aid applicants, regardless of their financial stability, as it enables authorities to reassess the applicant's financial information for the entire year and determine the appropriate aid amount.

Purpose of FAFSA school codes.

FAFSA school codes are codes designated to colleges and universities, enabling students enrolled in these institutions to access financial aid. The Department of Education has implemented this coding system to streamline the process for educational institutions. To ensure the accurate transmission of their information, students need to provide the appropriate FAFSA school codes for the institutions they are applying to or currently attending.

To facilitate the retrieval of school codes, Federal Student Aid offers the Federal School Code Search tool, allowing FAFSA applicants to conveniently access this information. With this tool, students can search for school codes by state or by entering the specific name of the institution, with the academic year automatically filled in. For example, if a student is interested in New York University, they can input New York for both state and city, along with the school's name, and the search result will display NYU's six-digit federal school code. Alternatively, searching for New York state alone will provide a list of all 459 eligible schools that can receive FAFSA data. Additionally, students have the option to download

What's the update on my FAFSA?

To find out the status of your FAFSA, login to your online account at the U.S. Department of Education. The awarded federal aid is contingent upon your financial need, assessed from the information provided on your FAFSA. If the aid doesn't meet your requirements, explore alternative funding options.