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
As recently as Dec. 2, 2008, then 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 $238 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.
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
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
You can file your FAFSA with the Department of Education beginning in January.
You can also complete your FAFSA in the fall prior using our FAFSAFirst™ service.
We will then submit it to the federal processor for you in early January.
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
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.
Choose from our services: