Free Application for Federal Student Aid (FAFSA)

FAFSA is an acronym for Free Application for Federal Student Aid, a federal program that verifies your eligibility for financial aid. Here’s how it works: The government reviews your tax forms—or your parents’ tax forms if you’re listed as their dependent—and other income documents. Your financial need is then based on the cost of attending your chosen school minus the amount your family will be able to contribute, including tuition, books, school supplies, housing and other expenses. For anyone interested in attending college, the FAFSA has been considered the surest way to receive financial assistance.

Do You Qualify for Federal Student Aid?

Any student wishing to obtain a loan from the federal government can fill out an application. There are, however, certain eligibility requirements for FAFSA. You must either be a U.S. citizen or an eligible non-resident with a valid social security number. You must have a high school diploma or GED. In addition, to be eligible for FAFSA, you cannot owe any refunds on federal grants or have defaulted on any student loans.

How to Apply for the FAFSA

The FAFSA form must be completed before a student can receive any financial aid. It is the first and most important step in the financial aid process. The FAFSA can be applied for electronically or by mail, however, keep in mind the process time. An electronic application is processed in two to three days, while a paper application takes four to six weeks. The most important thing to remember when applying for the FAFSA is that you must apply every academic year as long as you wish to be considered for federal aid. Also, apply as early as possible. Late applications will not be processed and by applying early, you give yourself time to make any changes or fulfill requests for further information before the deadline.

Cover Your College Expenses

Once you’ve submitted your application, your Expected Family Contribution (EFC) and Cost of Attendance (COA) will determine what loans and/or grants you qualify for. COA includes tuition, living expenses, miscellaneous fees, books, meals and board. This amount minus the EFC equals a student’s financial need, which can be covered by federal grants, state grants, academic or talent scholarships, institutional grants, federal work-study and various loans.

Filling out a FAFSA is a Win-Win

Obtaining financial aid through FAFSA has many advantages. First, there are no credit checks. Applicants with no credit history or low credit scores will find it difficult to qualify for a loan from a bank or financial institution. The FAFSA looks at expenses and need, and, compared to college bank loans, interest rates are far lower. However, there may be borrowing limitations associated with the FAFSA. If the amount granted does not cover all your expenses, you may need to secure additional loans.