Understanding College Financial Aid
Earning a college education is one of the best investments in your future.
Today, college students and their families face a “perfect storm” – college
tuition is climbing, the economy is weakening, and credit is tightening.
Figuring out how to pay for a college education is more challenging than ever before.
But one thing hasn’t changed, filling out the government’s aid form is still
complicated and time consuming.
As recently as Dec. 2, 2008, U.S. Secretary of Education Margaret
Spellings told those at the Federal Student Aid Conference that the FAFSA is
“still a real pain in the assets.”
“Sadly, many students, up to 8 million in fact, don't even apply for aid,
in part because of all the red tape. We believe most would have been eligible
for assistance,” Spellings said.
Fortunately, more than $145 billion in financial aid is available to help
pay for college. Filing your federal financial aid application, known as the FAFSA,
is the first step in applying for more than 90% of this money.
We can help. We make your filing process accurate and fast so you have peace
of mind that your eligibility for financial aid is the best it can be.
What Is a FAFSA?
All college students are expected to contribute towards their education
costs. How much you and your family will be expected to contribute depends
on your financial situation — and is what’s called your Expected Family
Contribution (EFC).
The Free Application for Federal Student Aid (FAFSA) is the form the U.S.
Department of Education (ED) requires to determine your Expected Family
Contribution (EFC). The government conducts a “need analysis” based on
financial information, such as income, assets, and other family information,
which you (and your parents if you are a dependent student) will be asked to
provide.
Your application is examined by a federal processor and the results are
sent by computer to the financial aid offices of the colleges you’ve chosen.
The FAFSA is the application most colleges use to determine eligibility for
federal, state, and college-sponsored financial aid, including grants,
educational loans, and work-study programs.
Eligibility
Nearly every student is
eligible for some form of financial aid, including low-interest Federal Stafford
and/or parent PLUS loans, regardless of income or circumstances, provided that you:
- are a U.S. citizen, a U.S. national, or an eligible non-citizen;
- have a valid Social Security Number;
- have a high school diploma or GED;
- are registered with the U.S. Selective Service (if you are a male ages
18 to 25);
- complete a FAFSA promising to use any federal aid for educational
purposes;
- do not owe refunds on any federal student grants;
- are not in default on any student loans; and
- have not been found guilty of the sale or possession of illegal drugs
during a period when you received federal student aid.
Applying for Aid - FAFSA Is Step #1
To be considered for federal financial aid, you must submit a completed FAFSA
on time.
Additionally, most states, colleges and universities use the FAFSA to award
other types of aid, including state-and-college-sponsored financial aid such as
grants, loans, and work-study programs.
Besides the FAFSA, some states and colleges require that you file other applications
for aid. Check with your college’s financial aid administrator for any state or
college-specific requirements.
Deadlines
You can file your FAFSA starting January 1. (You can do it earlier with us
and we’ll file the form January 1.)
Federal aid is limited and much of it is offered on a first-come, first-served
basis, so the earlier you file the better your chances of accessing the most
financial aid possible.
Many states, colleges, and universities have filing deadlines as early as the
first weeks in January.
Pay close attention to how colleges word their deadline instructions. Some
refer to the date by which your FAFSA must be submitted – the Transaction
Receipt Date – while others refer to the date your completed aid application
must be sent by the federal processor to a college’s financial aid office.
Missing deadlines can ruin your opportunity for financial aid. You should
check with your colleges’ financial aid administrators to learn each college’s
exact FAFSA deadline. Filing as close to January 1 as possible is highly
recommended.
To help our clients, Student Financial Aid Services offers an up-to-date
database of individual state and college filing deadlines and special
assistance to late filers, including those facing immediate
deadlines.
Chose from our services: