F.A.F.S.A.
What is it? Free Application for Federal Student Aid. It is a fundamental part of the financial aid information colleges require for their incoming students. It is a government form that colleges need completed and submitted in order to process any financial aid.
When should you complete it? As soon as you receive your W-2s and other needed tax information. It’s important to complete it even if you are not “counting on” financial aid. Many scholarships will not be processed or awarded to students whose families have not completed and submitted their FAFSA form
.Where do I get a form? The best and fastest way to have your information processed is to go online to fafsa.ed.gov and fill out the form.
Financial Aid Application Time Is Near
Applying for financial aid is a huge, integral part of the college process and families must understand how to properly complete the Free Application for Federal Student Aid (FAFSA) and how the Expected Family Contribution (EFC) is calculated. First though, families should take the time to understand the financial aid process and a few terms and definitions.
What is College Financial Aid? College financial aid is money given by the Federal and/or State governments and the colleges to help students pay for the cost of a college education. There are two basic types of financial aid: Self-Help aid consists of interest subsidized loans and work study; and, Gift Aid consists of grants and scholarships. The amount and type of financial aid is based on two factors: The merit of the student (scholastic, athletic, musical, etc.); and, The financial need of the student. By far, the financial need of the student this is the most important factor in determining financial aid. Most of the financial aid given by the Federal and State governments is based on the financial need of the student and most of the financial aid given by colleges is need-based and is determined by the EFC of the family.
What is the EFC? The Expected Family Contribution (EFC) is the dollar amount the family is expected to contribute to the total cost of college for the academic year. The EFC is computed by using family financial data submitted on the FAFSA financial aid application form. The EFC is then subtracted from the Total Cost of Attendance (tuition, fees, room and board, books and supplies, personal expenses, cost of a computer, and transportation to and from college) to arrive at the student’s “need”, or eligibility for financial aid. Needs Analysis Example If the “cost of attendance” at a particular college was $36,000 and the “expected family contribution” was calculated to be $8,000, the “financial need” of the student would be $28,000. In this case, the student would be eligible to receive $28,000 in financial aid. If the student had other “resources” the financial need would then be reduced on a dollar-for-dollar basis for these resources.
What is the source of data used in EFC calculations? All data used to calculate a student's EFC comes from the information the student provides on the Free Application for Federal Student Aid (FAFSA). A student may submit a FAFSA: through the Internet by using FAFSA on the Web, by filing an application electronically at those schools that participate in the department's Electronic Data Exchange (EDE), or by mailing a paper FAFSA. A student who applied for federal student aid in the previous award year might be eligible to apply by filing a Renewal FAFSA, either by using the paper Renewal application mailed to his or her home, or through the Internet. Applying for federal financial aid is FREE. To be considered for nonfederal aid, such as institutional aid, however, a student may have to fill out additional institutional financial aid forms and pay a processing fee.
Who processes the FAFSA application and how is a student notified? The Department's of Education’s central processing system processes the student's FAFSA and computes the EFC, based on the information the student reported on the FAFSA. Each student will receive a Student Aid Report (SAR) that reports the information from the student's application and the student's EFC. All of the colleges that the student listed on the FAFSA will also receive this information in an electronic file called an Institutional Student Information Record (ISIR). If corrections are necessary, students have several options for making them: Students can ask their schools to make electronic corrections for them using FAA Access to CPS Online or through EDE (if the school participates in Department’s Electronic Data Exchange, EDE. Students with Personal Identification Numbers can make corrections using FAFSA Corrections on the Web. Students can make corrections using the SAR and return them to the address provided with the SAR Report.
When do you complete the FAFSA? The FAFSA cannot be completed until January 1 st of the student’s senior year of high school. It is recommended that the FAFSA be completed as soon as possible after this date. The reason is that most colleges have a finite amount of financial aid that is given to them by the federal and state governments and the students who apply first for financial aid are the first in line to receive this money. If you wait to the last minute to complete the FAFSA, the college may not have any money left to give.
Most families assume they cannot complete the FAFSA until their taxes have been completed and filed. This is absolutely wrong. You can complete the FAFSA by estimating your income and taxes. You should estimate your taxes by using your last year’s tax return. If your income was not that much different from the previous year’s income, you can complete the FAFSA and make adjustments once you receive the Student Aid Report (SAR).