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Federal Student Aid

The ins and outs of applying for Federal Student Aid

Almost every college student in the US qualifies for some form of financial aid.

The key to making sure you get the most help you can? FAFSA: The Free

Application for Federal Student Aid. Here’s how to apply, how it works, and

what you can get to help you pay for school.

The Deadlines

You can submit your FAFSA starting on January 1st of each year, but no later

than June 30th. There are no exceptions to these deadlines and a lot of aid is

first-come, first-serve: so plan to apply as early as you can.

Fill it out!

Even if you think you have your costs covered, fill out the FAFSA. You may be surprised by what you qualify college

for and how much assistance you can get, all just because you’re going to college. A lot of schools use the FAFSA to

determine if you qualify for their own financial aid programs, too. So even if you aren’t planning on using any

government programs, it’s a good idea to complete an application anyway. Here’s how to get started:

First, if you’re hoping for government financial aid, make sure you qualify. The federal government has made sure that

almost all students do, but it’s best to double check. In order to receive federal financial aid, you must:

Be a U.S. Citizen, U.S. National, or legal resident.

Have a social security number

Have a highschool diploma, GED, or pass an Ability-to-Benefit test

There are some other restrictions if you’re not paying back student loans you already have or if you’ve been found

guilty of drug-related offenses. For special circumstances like those, check out their FAQ page . here

Next, you’ll need to collect some information about yourself and your parents. Since Federal Student Aid is designed

to close the gap between what a family can afford and what college costs, the application requires a lot of financial

information. Here’s what you’ll need to have handy to complete the application:

Your Social Security number

Your driver’s license (if you have one)

If you , your W-2 forms from the last year and any other records of money that you’ve earned work

Your Federal Income Tax Return from the previous year.

Your Parents’ Federal Income Tax Return from the previous year if you’re a dependent student (meaning

you’re under 18 and your parents support you).

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Income records for money that isn’t taxed (if you have any)

Your current statements (you can get them online from most banks as PDFs) bank

If you have a business, mortgage, or any other kinds of investments, current information and records about

them.

If you aren’t a U.S. Citizen, your alien registration or resident card.

Once you get all of that together, you’re all set! Create an account for yourself on the FSA homepage and start filling

out your FAFSA. You can save your progress and come back to your application later if you’ve forgotten anything.

What happens next?

The Department of Education (a branch of the federal government) will review your application and plug in all the

numbers to determine what kind of aid and how much you qualify for. You’ll get a packet in the mail from them called

an SAR, or Student Aid Report, with all that information with the opportunity to correct any mistakes that might have

been made along the way. The FSA will also forward your SAR to the schools you’ve selected on your application.

Your school or schools will use your SAR to determine what kind of aid to offer you.

What will you get?

There are three types of government aid you can receive based on your FAFSA: grants, work-study, and federal

loans.

Grants: Grants are financial aid that you don’t have to pay back (unless you drop out of school and owe a

refund). There are five different kinds of grants the federal government gives students: some are based

strictly on need, others have to do with academic performance, and others are awarded if you’re studying to

be a teacher.

Work-Study: Work-Study aid is an agreement between you, your school, and the federal government. The

school you attend will offer you a campus job with a limited number of hours so it doesn’t interfere with your

school work. The government pays about 75% of what you earn and the school pays the other 25%. Many

schools have limited numbers of these kinds of jobs available, so be sure to apply early.

Federal Loans: Federal loans are just like loans -- they have to be paid back. The advantage of federal bank

loans is that they’re tightly regulated by the government. The interest rates are usually low and new laws have

recently been passed that give students more flexibility on when they have to be paid back. Check out this

article to learn more: SAFRA.

The Bottom Line

Filling out a FAFSA is one of the first and most important steps you should take when planning how to pay for school.

There’s a lot of paperwork involved, but it’s worth it. Apply early, as close to January 1st as you can, and remember to

double check your Student Aid Report for errors to get the best offer and the most amount of aid you can from your

school.