When people complain about the process of applying for financial aid, they’re usually referring to the Free Application for Federal Student Aid (FAFSA). Like its name implies,The FAFSA is a form that college students need to complete in order to qualify for any form of federal financial aid.
It’s true that filling out the FAFSA can be a tedious and frustrating process, but much of that difficulty comes from being unprepared. Get ahead of the game by reading our comprehensive FAFSA primer below.
What is the FAFSA?
The Free Application for Federal Student Aid (FAFSA) is the official form that colleges use to determine how much financial aid you qualify for. Many universities also require that students complete the FAFSA to be eligible for internal grants and scholarships. If you’re attending college in-state, you may only qualify for state grants if you complete the FAFSA first.
Once you complete the FAFSA, it will be sent to the schools you apply to. Those financial aid departments will then use the FAFSA data to decide what kind of aid you’re eligible for. If you don’t submit the FAFSA, you won’t be eligible for federal student loans and federal grants, including the Pell Grant and work-study opportunities.
The FAFSA has to be submitted every year that you want access to financial aid. That means you can’t just fill it out before your freshman year and expect to receive financial aid for the rest of your time in school.
FAFSA Timeline
The FAFSA is available on October 1 the year before you enroll and is due by June 30 the year after you enroll. For example, for the 2022-23 school year, the FAFSA was available on October 1, 2021 and is due by June 30, 2023.
However, if you wait until June 30, 2023 to submit the FAFSA, then you won’t receive financial aid for the fall and spring semesters. You may still receive money for summer 2023 classes.
Individual states and colleges may have earlier deadlines than the official FAFSA deadline, so you should submit the form by those due dates. If you’re attending college in-state, go here to find your state’s deadline.
For example, if you live in California, the deadline is March 2, 2022 if you wanted to receive state grants while the deadline was Jan. 15, 2022 for Texas residents. This is why it’s crucial to check your state’s deadline – you never know when the FAFSA is due for your state.
The sooner you complete the FAFSA, the better. Some awards are given on a first-come, first-serve basis, so financial aid experts recommend filling out the FAFSA early.
The FAFSA will ask for basic contact information for both you and your parents, including full legal name, Social Security Number and address. The FAFSA uses personal financial information like your parent’s tax returns and their total assets to determine your family’s Expected Family Contribution (EFC). The lower your EFC, the more aid you’ll qualify for.
The EFC may change year-to-year if your parent’s financial situation changes. For example, if one parent is laid off, then your EFC will decrease and you will likely receive more financial aid. Or if a sibling is no longer an official dependent, then your family size will decrease which will result in a higher EFC.
You’ll need your parents’ help to complete the FAFSA in most cases, but there are exceptions. The Department of Education classifies students as either dependent or independent. Dependent students need to add their parent’s information on the FAFSA, while independent students do not.
Independent students are those who meet one of the following criteria:
- Married
- Veteran
- 24 or older
- Living at home and commuting to college
- Returning to school after dropping out
- Orphan or a ward of the state
- Already in the workforce
If you’re an independent student, you won’t need your parents’ financial information to submit the FAFSA. You’ll also likely qualify for more financial aid, including more money in federal student loans.
If you qualify as a dependent student but your parents are unwilling to help you with the FAFSA, you may receive an exemption to submit the FAFSA without their information.
This exemption is only available if you meet one of the following criteria:
- Your parents are in jail
- You’ve left home because it’s an abusive environment
- You cannot locate your parents
- You are between ages 21 and 24 and do not live with your parents and are independent, homeless or at risk of becoming homeless
Tips for Completing the FAFSA
- Start Early
Because so many financial awards are given on a first-come, first-serve basis, you should complete the FAFSA as soon as possible. The sooner that colleges receive your FAFSA, the more likely it is that you’ll receive internal awards. Some states also give out awards that are limited in number.
- Use the IRS Data Retrieval System
If you file your taxes online, you can use the IRS Data Retrieval system to connect your tax information to the FAFSA. This can be a huge timesaver and means you don’t have to flip through the tax return and find the information the FAFSA is looking for.
You should also gather your other financial documents, like bank statements, investment accounts, and any college accounts. Having that information handy will make it easier to complete the FAFSA which may ask for how much you have in various assets.
- Ask for Help
The FAFSA is notoriously complicated so don’t feel bad if you’re having trouble filling it out. Use the FAFSA helpline and call if you have any questions. Your high school college counselor may also have some resources to help.
- Appeal Your Results
If you don’t get as much aid as you need, you can appeal the decision with the college financial aid department. Explain why you need more aid, including details about your financial situation. Provide proof, like medical bills or a letter saying your parents lost their job.
- Remember to Apply Every Year
It’s common for students and parents to think that they only need to complete the FAFSA right before starting college. But you have to fill out the FAFSA every year that you want financial aid. Set a calendar reminder every fall to start working on the FAFSA.
FAFSA FAQs
Does filling out the FAFSA mean my parents will have to pay for college?
Some parents think that filling out the FAFSA means they’re obligated to take out loans on your behalf, but this is not the case. Federal student loans do not require a cosigner, and they won’t show up on your parent’s credit report. If you take out a federal student loan, it will only show up on your credit report.
If your parents are willing to help, they can take out federal Parent PLUS loans or private student loans, but this is completely optional.
I don’t think I qualify for aid – should I still fill out the FAFSA?
According to a survey commissioned by the National Center for Education Statistics, 32% of students who did not submit the FAFSA assumed they wouldn’t qualify for any financial aid.
But every student who successfully completes the FAFSA by the deadline will at least be eligible for federal student loans. Plus, if your school’s financial aid department uses the FAFSA to determine scholarship eligibility, then you may lose out on scholarship money by not completing it.
Federal student loans have more income-driven repayment options, longer forbearance periods and more loan forgiveness programs than private student loans. You should always try to max out your federal student loans before taking out private loans.
Can I appeal FAFSA results?
The FAFSA doesn’t perfectly gauge how much your family can afford to pay for college, and many families receive an EFC that is far more than they can afford. This can become a bigger issue if your parent’s financial situation changes after you submit the FAFSA. For example, if your parents have a medical emergency or lose their jobs after you complete the FAFSA, the EFC may be way off base.
If you think the EFC is wrong, you can contact the financial aid department and appeal the results. Write a letter explaining your situation and why you deserve more aid. Be specific and if possible, include documents that support your claim. Since the start of the Covid-19 pandemic, colleges have been more receptive to appeals – so it’s at least worth trying.
It’s important to stay informed and organized as you apply for financial aid. And remember that it’s a good idea to always exhaust your federal aid options before applying for private student loans.
Disclaimers
