FAFSA
https://youtu.be/euMIIeCCJuQ
Did you know that even if you don't think you qualify for financial aid, you should still complete the FAFSA?
Hey everyone, Its Dr. A welcome back to the financial literacy series. If you are enjoying this series, make sure to like and subscribe.
Today we are talking about the FAFSA, why and how to complete the application
College education is getting expensive but based on my experience serving on scholarship committees, there are scholarships that students can receive but do not qualify for because they never filled out the Fafsa. At many universities and colleges, receiving any aid usually requires that you complete the FAFSA first. So even if you think you do not qualify for federal or state aid, make sure to apply so that you can qualify for scholarships at your school.
What is Fafsa?
FAFSA stands for Free Application for Federal Student Aid. It is a centralized application that helps collect data so that you can qualify for federal, state, and college level scholarships.
How to apply for FAFSA?
Step 1- Get an FSA ID
To access the application you need an FSA ID. I will put a link to this below.
If you are a dependent student then one of your parents will have to complete the FAFSA forms too, so make sure they get a FSA ID as well for their part of the work.
Step 2- Gather Documents you might need during the application process
The FAFSA questions ask for information about you (your name, date of birth, address, etc.) and about your financial situation. You might need the following information or documents as you fill out the application:
Your Social Security number (it’s important that you enter it correctly on the FAFSA form!)
Your parents’ Social Security numbers if you are a dependent student
Your driver’s license number if you have one
Your Alien Registration number if you are not a U.S. citizen
Federal tax information or tax returns including IRS W-2 information, for you (and your spouse, if you are married), and for your parents if you are a dependent student:
IRS 1040
Foreign tax return, IRS 1040NR, or IRS 1040NR-EZ
Tax return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federated States of Micronesia, or Palau
Records of your untaxed income, such as child support received, interest income, and veterans noneducation benefits, for you, and for your parents if you are a dependent student
Information on cash; savings and checking account balances; investments, including stocks and bonds and real estate (but not including the home in which you live); and business and farm assets for you, and for your parents if you are a dependent student.
Step 3- Complete the FAFSA before the deadline
You will have to complete the FAFSA every year. FAFSA for next academic year funding open on October 1 and check for the federal deadline to complete the FAFSA . In 2022 the Federal Deadline is June 30th. Each state and each school will also have their own deadlines, usually earlier than the federal deadline. So make sure to check with the schools you plan to attend. For instance, the state of Kentucky accepts applications on october 1 and starts awarding funds as applications come in, so you want to get your application in ASAP.
If you are a senior in high school. Make sure that you send your FAFSA to every school that you are considering. Check each school for the Title IV code to include in your FAFSA application.
Step 4- Check Student air report (SAR)
Once you apply, you can check the status of your application. A few days after your application is received you will have access to your Student Aid Report or SAR. A summary of your FAFSA application and allows you to check if you might have provided incorrect information. This is also where you will see your Expected Family Contribution or EFC. This is used to determine your award and isnt really what you are expected to pay, so dont worry when you see this number. How much you actually pay will be determined in the next step
Step 5- Receive your award package
Once you submit your application, the application will be processed at the Federal, state and school level. You will receive an award package from each school that you were accepted that informs you of how much aid you will receive. Comparing award packages is a skill in itself. Not all award letters are clear to understand. Make sure that you are considering your out of pocket contribution when comparing costs of attending schools. Drop a comment and tell me what college costs that you have experienced that you didn't know about?
Make sure to compare how much you will have to pay, not how much in aid you will receive. This is especially important when deciding between schools that have a large difference in their tuition costs. What matters more is how much you pay after aid!
Step 6- Fill out your FAFSA every year.
One of the biggest issues facing sophomore students is that many of them forget or do not complete the FAFSA in time and end up facing challenges in their second year of college due to funding limitations. So make sure that in October of your first year of college that you complete your FAFSA. Go ahead, put it on your calendar right now!
College is worth every penny of it, but make sure that you do your part to make it as affordable as possible. Do you have any other tips on how to pay for college? Drop them in the comments.
Resource
2021–22 FAFSA on the Web Worksheet—Provides a preview of the questions students and parents may be asked while completing the FAFSA form.