A Guide to FAFSA

Navigating financial aid for higher education

By Hayley Gappy

The Free Application for Federal Student Aid (FAFSA) is a form that students in the United States complete to determine their eligibility for financial aid. This aid can include grants, loans, and work-study programs. Most colleges, universities, technical schools, and some graduate programs utilize the FAFSA, which is administered by the U.S. Department of Education, to determine a student’s financial need and distribute federal, state, and institutional funding.

What do you need to know before completing the FAFSA? 

Financial aid comes in three main types: grants, loans, or work-study programs. 

Grants or scholarships are forms of “free money” that do not need to be repaid and are often awarded based on financial need or merit. Some are provided by the government, often federal, such as the Pell Grant, sometimes state, like a Michigan Competitive Scholarship and occasionally, local. Scholarships usually come from private businesses and corporations or foundations such as the Chaldean Community Foundation, which distribute tens of thousands of dollars per year to deserving students.

Loans must be returned with interest and are classified as unsubsidized or subsidized. A subsidized loan is one where the government covers the interest while the student is enrolled in school. Federal loans include various repayment plans, including income-driven repayment, and choices like deferment, forbearance, and debt forgiveness. 

Work-study programs provide part-time jobs related to the student’s course of study for need-based students. These jobs allow students to earn money to cover their educational expenses while they are in school. They help to reduce the need for loans. 

Paying attention to the deadlines for the FAFSA is important for maximizing your financial aid opportunities. Many states and schools offer financial aid on a first-come, first-served basis and typically begin sending out financial aid offers in the spring. Submitting your FAFSA early can ensure you’re considered for the maximum amount of aid possible. 

The FAFSA form opens on October 1 for the following academic year. It’s crucial to submit your application as early as possible to meet priority deadlines and increase your chances of receiving aid. The federal deadline for submitting the FAFSA is June 30 at the end of the academic year for which you are applying, but state and school deadlines are often earlier.

Additionally, if you need to make corrections to your FAFSA, you have until September 15 of the year following the academic year. Staying aware of these deadlines and renewing your FAFSA each year will help you secure the financial support you need for your education.

Who is eligible for financial aid?

Any student planning to attend college or a career/technical/trade school should fill out the FAFSA to determine their eligibility for federal, state, and institutional financial aid. Eligibility requires that you be a U.S. citizen or a permanent-resident non-citizen.

Applicants must have a valid Social Security number, a high school diploma or equivalent, be enrolled or accepted for enrollment in an eligible degree or certificate program and maintain satisfactory academic progress. Additionally, you must not be in default on a federal student loan or owe money on a federal student grant. Males between the ages of 18 and 25 must be registered for Selective Service when they are completing the FAFSA. 

What information should you have handy before you fill out the FAFSA?

To get started, visit fafsa.gov and log in using your FSA ID. If you don’t have an FSA ID, you can create one at fsaid.ed.gov. This ID is crucial for signing your FAFSA form electronically.

Before you fill out the FAFSA, it’s important to gather the necessary information to make the process efficient. You’ll need your Social Security number, driver’s license number (if you have one), the current balance of your checking and/or savings account, and federal tax information or tax returns, including W-2s. 

You’ll also need your parents’ or spouse’s Social Security numbers, the current balance of their checking and/or savings account, and tax information to be considered for federal student aid. Parents and/or spouses, specifically those who don’t file joint taxes, must each have their own FAFSA accounts to fill out their portion of the form. When applying, you should have records of any untaxed income and information on cash, savings, and checking account balances, as well as details about any investments other than the home you live in.

If you’re not a U.S. citizen, but an eligible non-citizen, you’ll need your alien registration number. Having this information handy before you start will help you complete the FAFSA accurately and quickly, ensuring you don’t miss out on any financial aid opportunities.

How do you fill out the FAFSA?

To fill out the FAFSA, start by completing the demographics section, which includes basic personal information like your name, social security number, and date of birth. You’ll then answer questions about your personal circumstances to determine your dependency status and whether you have any special financial situations. Next, specify the type of financial aid you want to receive, such as grants, loans, or work-study.

After these, you’ll provide more demographic details and enter your tax and finances. List the schools that should receive your FAFSA information, and if you are a dependent or married, include your parents’ or spouse’s demographic and financial information in the designated sections. Once all sections are completed, review, sign, and submit your application to receive a confirmation email.

What is the process after you submit the FAFSA form?

You can check the status of your FAFSA immediately after submission by logging into your account at fafsa.gov. You will receive an Expected Family Contribution (EFC) amount. The EFC is calculated based on the information you provided, and this figure helps schools determine your financial need. Each school you listed on your FAFSA will use your EFC to create a financial aid package custom-made to your financial situation.

Within a few days, you’ll also receive a Student Aid Report (SAR), which summarizes your FAFSA data. It’s important to review your SAR for any errors and make corrections if necessary. If your FAFSA is selected for verification, you’ll need to provide additional documentation to confirm the accuracy of your information. Respond to these requests as soon as possible to avoid delays in processing your aid.

Once your FAFSA is processed and you’ve been accepted to a school, you’ll receive financial aid offers. Review all these offers and decide which aid packages best meet your needs before accepting them. Remember, the FAFSA must be renewed each year you plan to attend school, and many of your previous answers will carry over, making the renewal process easier.

​​Completing the FAFSA is a crucial step for students pursuing postsecondary education to access the financial resources necessary for success. Understanding the types of aid available, gathering the necessary information, and adhering to important deadlines can maximize your chances of receiving financial support.

Whether you’re a first-time applicant or renewing your FAFSA, staying informed and prepared will help you navigate the process securing the funds you need to pursue your educational goals.