The Free Application for Federal Student Aid, or FAFSA

If you have a child who will be attending college, or if you are considering going back to college yourself, there is one document that you must consider filling out the Free Application for Federal Student Aid, or FAFSA. The FAFSA is the most important document in determining eligibility requirements for public financial aid money and it is used by many colleges and universities in determining eligibility for private scholarship and grant dollars as well.

We’ve created a flash video on filling out the FAFSA at http://www.collegeforkatie.com/fafsa_new.html. But, before you jump into the video, there are some key pieces of information about the FAFSA you should know before you try to fill it out. This article summarizes many questions and answers you may have about the FAFSA.

The FAFSA is the key to unlocking federal financial aid dollars, several billion dollars in new federal aid in 2005-2006 alone. The FAFSA program is managed by the United States Department of Education, or the Dept. of Ed. The FAFSA is used by the Dept of Ed to determine whether a student, based on the family’s income, is eligible for federal grants or federal loans. In addition to being used by the Federal government, most states and many institutions also use the data collected on the FAFSA to determine eligibility for their own grant, loan, and scholarship programs as well.

The FAFSA is a long document that is now completed, almost entirely online at http://www.fafsa.ed.gov. While paper copies are still available, the online FAFSA is your best option for several reasons. First of all, the online FAFSA allows for the fastest and easiest processing of your information. When you complete the FAFSA online you’ll have many opportunities to review your work to make sure it is accurate. If you use the paper document, you have to make sure it’s right, mail it in to the Dept of Ed, someone hand enters it into a computer, and then you have to wait until your Student Air Report, or SAR, is returned to check for any errors. With the online FAFSA you receive the SAR electronically within one to five days, about half the time it takes with the mailed FAFSA. And if you complete online and find an error in the SAR, you can quickly and easily correct it online as well.

In addition to the online FAFSA being more efficient up front, using this also makes the process of completing the renewal FAFSA each year easier as well. Each time you create a renewal FAFSA any information that you entered in previous years is moved forward for you onto the new document and you only have to verify and correct, no entering your name, address, phone number, employer, and more every time you fill out the document. In addition, if you or your child are using the MyFSA website (http://www.FederalStudentAid.ed.gov) to streamline the college search and planning process then information entered on this site is also carried over to the online FAFSA.

One of the least understood aspects of the FAFSA is why it is important to fill it out even if you are sure you will not qualify for grants or loans. There are really two key reasons that you should fill out the FAFSA before starting college (and a renewal FAFSA each year that you are pursuing an education). The first is that a year is a long time and in that year many things can happen such as the loss of job, serious illness, or even death. In these cases, income levels may change and may change the student’s ability to qualify for grant or loan dollars. However, if an original FAFSA was not filled out, then when the student attempts to receive assistance based on this new financial status there may be less money available because the change in status will not be evident. Put a bit more simply, if you can demonstrate that you’ve had a significant loss of income due to loss of job, illness or death more money may be available to you. Therefore, it is important to file a FAFSA (and a renewal FAFSA each year after that).

The second reason for filling out a FAFSA even if you are sure you will not qualify for grants or loans is that the FAFSA is not only the key to unlocking federal aid, but also state and institutional aid as well. Many institutions require you to complete a FAFSA (or renewal FAFSA) in order to be eligible for institutional scholarships, even those that are not need-based.

Before you begin filling out the FAFSA, you’ll need to gather several pieces of information. If you’re using the online FAFSA you’ll need to register for a PIN number with the department of education. You can do so by following the instructions on the FAFSA web site at http://www.fafsa.ed.gov or by going directly to the PIN web site at http://www.pin.ed.gov. You’ll need your PIN to access your FAFSA, check the status of your FAFSA, and to complete your renewal FAFSA. The PIN is assigned for life so if you or your child decide to continue your education in graduate school or beyond, the PIN number they get right out of high school will still apply so it is important to keep this number in a safe place. The PIN number should be protected as confidential information and should never be shared with a third party. It takes between one and three days to get a PIN number if you provide your email address and about 10 days to receive the PIN by mail if you opt not to provide your email address.

While you’re waiting to receive your PIN number, it’s a good idea to gather all the documents and information you’ll need to complete the FAFSA. The Department of Education provides, on the FAFSA web site, a list of documents you will need to complete the FAFSA each year. You should consult the web site at http://www.fafsa.ed.gov for the most up to date list, but the following is a good representation of the information you will need:

• The student’s social security number


• The student’s driver’s license (if the student has one)


• The student’s current year W-2 forms and/or records of any money earned while working.


• The student’s current year Federal Income Tax Return


• The parents’ current year Federal Income Tax Return


• Records of any untaxed income for both the student and the parent. Examples of this include social security, TANF, welfare, or veterans benefits


• The most recent bank statement for both the parent and the student (if the student has his/her own account).


• Records of any other business or investment mortgage information, business and farm records, stock, bond, and other investment records


• The student’s alien registration number or permanent residence card (if not a U.S. citizen)


• The school code for the schools to which you want the FAFSA sent. Most school financial aid offices provide their school code on just about every piece of written documentation they send you. If you don’t have it, you can either contact the school or use the online system on the FAFSA web site to look up the school code. Keep in mind there is no obligation to accept aid from a school to which you send a FAFSA, but many schools will not provide you with information about your FAFSA application or aid eligibility if you have not made application to the school.

Once you’ve gathered all these documents, you’ll want to take a look at the FAFSA on the web worksheet which is also available at http://www.fafsa.ed.gov. This worksheet, which is available in PDF format and is provided in both English and Spanish, allows you to enter information in the order it will be requested on the FAFSA. If you encounter problems with the questions while you are filling out the worksheet, there are many different places you can go for assistance. These include:

• FAQs or Frequently Asked Questions (and their answers) which can be found on the FAFSA website.


• The Student Aid web site guide to completing the FAFSA which is located at http://www.studentaid.ed.gov/completefafsa. The guide on this web site entitled "The Application Questions" explains each question in detail, provides some information on why that question is important/necessary, and gives guidance in how to answer the question or where the answer might be located in the documents you have.


• The Federal Student Aid Information Center (FSAIC) which can be reached by calling 1-800-4-FED-AID (1-800-433-3243) or TTY can call 1-800-730-8913.


• The financial aid office of your local community college. Whether you’re planning to attend classes at the local community college or not, they may offer free assistance in completing the FAFSA. Some offer this by appointment year round and others participate in programs such as College Goal Sunday. You can find out about schools in your state that participate in College Goal Sunday by visiting http://collegegoalsundayusa.org. This annual event is sponsored in more than 40 states by college financial aid staff. The event is typically held around the time of the Super Bowl (hence the name, college "goal" Sunday)


• The financial aid office of institutions where you are applying. While the institution may not be in your local community, these folks often are available by phone or email to provide assistance in completing the FAFSA and answering other questions.

Once you’ve received your PIN and completed the FAFSA on the web Worksheet, it’s time to log on to the FAFSA web site and begin completing the form. If you’ve completed the worksheet and have all your documentation close at hand and have a relatively fast Internet connection, it will probably take you about an hour to complete the FAFSA. However, if you have to go searching for last year’s tax records while you’re trying to fill out the FAFSA online, it may take much longer. So the key here is to be organized up front so you are not frustrated as you move through the process. If you get stuck or if you just need to take a break you can always save your work online (there will be instructions on how to do this once you log in to begin the FAFSA) and return to it later.

As you work, be sure to check your entries for accuracy. It is important that you fill out all information accurately and completely. Take the opportunity when you’re done to check your work and ensure that you entered everything exactly as it should be. When you’re finished follow the on screen instructions to submit your work. It’s a good idea to print a paper copy (this will be an option when you reach the end of the online application process) and keep it with your other financial aid records.

After you’ve submitted your FAFSA you’re not quite done yet. You will need to wait a couple of days (sometimes as few as one day and sometimes as many as ten days) to receive your Student Aid Report, or SAR. Review the SAR carefully to make sure that you entered everything correctly. There will be instructions with your SAR to either make corrections to the information or to affirm that everything is correct. Be sure to complete this process and then you’re ready to contact the schools to which you are applying to ensure they received your FAFSA information and to begin working with them to determine financial aid awards. Many schools offer you online access to this information so you may want to contact them to determine if this is available for new students.

Remember that it is important to meet the deadlines for completing the FAFSA, and in some cases the earlier you complete the FAFSA the better. Because you will need your tax return information from the previous year, you are not eligible to complete the FAFSA before January 1 of the year in which you wish to begin receiving aid. You may fill out the FAFSA any time after that for federal aid, although priority is given based on a first come, first served basis. In addition, many states have a financial aid deadline for the FAFSA that must be met to guarantee consideration for aid dollars. These deadlines are as early as March 1 so be sure you check with your institution or your state’s department of education to determine if an early filing deadline exists in your state.

Disclaimer: Advice provided on www.collegeforkatie.com is for informational purposes only. Material changes can and do occur. Programs, plans and definitions may change. Therefore, we encourage you to do your own research as we accept no responsibility for the information provided here. You may use this information at your own risk. Copyright © 2007