Grasp the FAFSA submission process.

1. FAFSA explained simply

The FAFSA, short for Free Application for Federal Student Aid, is the essential form for students seeking federal financial assistance, determining their Expected Family Contribution (EFC). Video: Discover the Acronym's Meaning.

2. Qualifying for need-based aid

The government determines your Expected Family Contribution (EFC) based on your family's ability to contribute to college tuition. If your EFC is lower than the cost of attendance, you are eligible for need-based aid, which can be determined by completing the FAFSA.

3. Skipping aid application process.

Failure to submit the FAFSA results in missing out on federal aid opportunities, including potentially subsidized federal loans worth thousands of dollars at low interest rates. Additionally, many colleges and universities rely on the FAFSA to assess eligibility for their grants and scholarships.

4. Initial application submission steps.

Federal aid is limited and allocated on a first-come, first-served basis, making early application highly recommended. Even if a FAFSA has been previously submitted, applicants can still submit a renewal or updated FAFSA with revised information. Following review by a federal processor, a Student Aid Report is issued to the student, summarizing the FAFSA details, and an electronic version is forwarded to the selected schools.


FAFSA and financial aid eligibility requirements

Most students qualify for some type of financial aid, but to be eligible for federal aid, they must meet specific FAFSA requirements.

  • 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.

Pell Grants, Perkins Loans, Subsidized and Unsubsidized Direct loans, and the Federal Work-Study program are among the frequently sought-after financial aids available through FAFSA.


Preparing for action

FAFSA captures family's financial capacity for college expenses, requiring substantial paperwork and data collection.

  • 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

Take your time when filling out the FAFSA form as it can be complex; allocating sufficient time is essential. Planning for around 30 minutes should provide ample time for completion. On average, it takes about 22 minutes to finish the form.


Filing methods available

The shift towards digitalization has transformed various essential processes, including the FAFSA, which can now be completed online.

Opting for this method of form completion can be advantageous for students, as it offers them:

  • 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

In 2013, the United States Census Bureau reported that 20% of households lacked internet access, but students can still complete the FAFSA online by utilizing computers available in college financial aid offices.


Preventing common pitfalls

Despite their best efforts, some students inevitably encounter difficulties in accurately completing the complex FAFSA form.

Frequently overlooked errors
Errors often relate to investments, with some students omitting their parents' holdings, while others include investments that FAFSA administrators consider inappropriate, 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

Despite the majority of individuals submitting error-free FAFSAs, approximately 22% of submissions contain various errors.

Small business-owning households

Families with business ownership should consider additional factors. Given the prevalence of over 23 million small businesses nationwide, many families may find themselves in this category. While families with small businesses must report their business value, those with fewer than 100 employees may be exempt from this requirement. It is crucial for students from such families to carefully read and understand the guidelines.

Common errors
Make minor miscalculations or omissions that have minimal impact on their financial aid eligibility.

  • 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

These may appear trivial, but seemingly insignificant mistakes can significantly hinder a student's access to crucial funding. To mitigate these errors, carefully reviewing the paper form and double-checking it ensures accuracy. Alternatively, completing the electronic form acts as a safeguard, as it prevents families from proceeding or submitting the form if errors are detected.


Seek expert guidance

If students despise dealing with the FAFSA due to its repetitive nature and complexity, they can find solace in the abundance of educational resources available. The U.S. Department of Education encourages struggling students to seek assistance.

  • 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.

While completing it might be slightly bothersome, the FAFSA doesn't require much time and is only an annual obligation, which isn't too troublesome. Moreover, once you successfully submit the FAFSA, you'll be on track to potentially receive valuable financial aid assistance.


FAQ

While looking for FAFSA updates, I came across the term EFC, which stands for Expected Family Contribution, and it plays a significant role in determining my eligibility for federal financial aid.

Estimated Family Contribution (EFC) is a significant factor in the federal financial aid application process, as it helps determine the amount of assistance a student is eligible to receive. The calculation for federal aid takes into account the estimated contributions from the student's family to cover the cost of attendance. If the student is dependent, they must provide their parent's W2 and income tax information, whereas independent students need to include their own financial details.

Are there specific deadlines I need to meet when submitting my FAFSA application?

It is highly recommended to complete the FAFSA form as soon as possible because certain documents required for filing, like your parent's previous year's 1040, might have time-sensitive constraints that could delay your application. Additionally, colleges typically have their own deadlines for the FAFSA, usually falling between January 15 and April 15. It's crucial to consult your school's financial aid office to confirm these dates. The Department of Education also has its own filing deadlines, with the current deadline for the 2017-2018 academic year set at midnight CDT on June 30, 2018. Don't forget that corrections to the form must be submitted by midnight CDT on September 15, 2018. For further details, please refer to the FAFSA Application Deadlines.

It is highly recommended to apply for FAFSA financial aid regardless of your perceived eligibility, as eligibility determination relies on several factors and circumstances that may surprise you.

Even if you believe your family income is too high, it's recommended to apply for financial assistance as there are various assistance programs available that you may still qualify for regardless of income, so filling out the FAFSA is essential to explore your options.

How do I renew my FAFSA application?

Every year, the FAFSA must be renewed, regardless of whether your financial situation remains unchanged, as all financial aid applicants are mandated to participate in the renewal process.

Meaning of FAFSA school codes?

School codes are unique identifiers assigned to colleges and universities, enabling enrolled students to receive financial aid. These codes, provided by the Department of Education, streamline the process by assigning a code to each educational institution. To ensure accurate information delivery, students must provide the FAFSA school codes for the institutions they are applying to or currently enrolled in.

Federal Student Aid has developed a convenient Federal School Code Search tool that enables students to swiftly access the necessary information. By using this tool, FAFSA applicants can search for school codes based on their state or the specific name of the institution, with the academic year already pre-populated. For example, if a student is interested in New York University, they can input New York as the state and city, along with the school's name, and the search result will display NYU's six-digit federal school code. Alternatively, a search for New York state alone will provide a list of all 459 eligible schools that can receive data from FAFSA. Additionally, students have the option to download an Excel-formatted Federal School Code list.

What's the status of my FAFSA?

To track your FAFSA status, log in to your online account at the U.S. Department of Education, the same site where you applied. Monitor your application's progress anytime.

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