All college and university students who want to be considered for federal student aid programs need to fill out the Free Application for Federal Student Aid (FAFSA). This form allows financial aid departments at colleges and universities to qualify students and their parents for federal loans, college grants, federal work study, and other forms of financial aid. The federal deadline for completing the application is generally in late June every year, but many states establish much earlier deadlines. States use the information students provide on this application to qualify students for state-specific college grant and aid programs.
The FAFSA can be filled out on the internet. Prior to filling out the form, the student and their parent(s) will need to gather their tax returns and other statements of income. If a student meets certain age requirements, they may be able to file the form without including information about their family’s finances. The Department of Education has developed a user-friendly online interface for filing this essential financial aid application. If they are not able to complete the application in one sitting, the student and their parent(s) can save their progress and finish the application later.
Upon completing the federal aid application, the student and their parent(s) will be able to view their expected family contribution (EFC). The EFC is the amount of money which the federal student aid agency believes a student and their family should be able to pay towards the cost of their education. Once the student knows what their EFC will be, they can better evaluate the cost of their different college options. Students and their parent(s) can subtract the EFC from the estimated cost of tuition, plus qualified expenses, at potential colleges to determine if they will need to secure any private loans or other sources of funding.
Financial aid departments at colleges and universities generally send new and continuing students financial aid award letters during the summer before the fall semester will begin. These letters detail the college grants, federal loans, and institutional scholarships or aid that a student is being offered. Some parents will be offered the option to take out a Parent Loan for Undergraduate Students (known as a PLUS loan). Students and their parent(s) should review financial aid award letters carefully.
The FAFSA is the first step most students take towards securing funding for their college education. Remember to pay attention to deadlines and to answer all questions truthfully and honestly. Federal financial aid allows many students to seize upon the great opportunities available to college graduates.