Filling out the Free Application for Federal Student Aid (FAFSA) is a critical step in the financial aid process. This single form is used to award all federal and state aid, and is the basis for most institutional aid as well. It is not surprising that students and families are less than enthusiastic when it comes time to complete and submit the FAFSA. In fact, many treat the FAFSA like yet another tax form, dreading the annual process and procrastinating until the last minute. A few simple tips can take the agony out of the application process.
1. The FAFSA is NOT a tax form. The biggest difference between the FAFSA and any tax form is that the FAFSA allows, even encourages families and students to use estimates in providing financial information. No one is penalized for using estimates. It is more important to submit the FAFSA at the earliest allowable date.
2. The FAFSA can be mailed or sent electronically. The online form is much improved over recent years and online chat help has made the electronic process easier.
3. One of the most common and costly mistakes made on the FAFSA is when a question that should be completed is left blank. This will delay decision making on the applicant's form as the college's financial aid office attends to complete applications. Any time you are unsure as to whether a question should be answered, just put in a zero. 4. Once the FAFSA is completed, make copies for the parents and the student. These copies are critical as you review the student aid report of errors, prepare special circumstances letters or review packages with the financial aid office. The copy will also help the following year as a new FAFSA is completed. If you are sending the FAFSA electronically, print a copy first for review prior to submission.
How the Process Unfolds Families sometimes think that the FAFSA is the end of the financial aid process, when actually it is only the beginning.It’s generally best to complete a FAFSA early in January containing estimated income figures and actual (current) asset figures. This will put the student towards the front of the line for funding and ensure that deadlines are met.The FAFSA must then be updated to include the current year’s tax information (income figures) after the family completes their Federal Income Tax Returns.
Student Aid Report (SAR) The FAFSA generates a Student Aid Report (SAR) and also provides the colleges and universities with an Institutional Student Information Report (ISIR).The ISIR contains the results of the FAFSA and the student’s eligibility for need-based funding.After the institution has received and evaluated the ISIR and the student’s admission application and other related financial aid applications, the student is then sent an Award Letter from each institution where he or she has been accepted for admission.
College Award Letter The original Award Letter generally contains the institution’s total cost of attendance (COA), along with the funding being offered by the Federal Government and the institution itself.Any funding a student has been awarded by private-sector scholarship sponsors is generally not included in the original Award Letter.Award Letters may be distributed by institutions as early as March, and as late as June or July of the student’s high school senior year. All financial aid packages are made up of a combination of “gift” money and “self-help” money.Gift money is money that is given to the student, and self-help money is money that is either borrowed or worked for.It is also important to know that simply because a student may be eligible for, or entitled to, gift money, does not mean that all institutions will necessarily offer this type of funding.
The Financial Self Reliance Group 444 N. York Rd. Elmhurst, IL, 60126 Phone: (630)993-8200 info@financialsr.com