Understanding FAFSA: Federal Student Aid Application Guide
Financial Aid - including loans, work-study, and grants - provided by the government helps students and families cover educational costs. The FAFSA application process involves creating an FSA ID, linking to the IRS for financial information, and determining student dependency status for eligibility. Divorced or separated parents need to provide relevant information on support and living arrangements. Apply through www.fafsa.gov or myStudentAid app after October 1, with a priority deadline of December 1.
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FAFSA (Free Application for Federal Student Aid) What you need to know
What is Financial Aid? Financial aid are funds that are provided to students and families by the federal government to help pay for expenses, and it can be awarded in a few ways. 1. Loans a. Subsidized loans - interest is paid by the Education Department while student is enrolled at least half time at a college or university. Unsubsidized loans - interest begins accruing as soon as the loan is disbursed. 2. Work Study - students can earn a paycheck while going to school 3. Grant money - this is basically free money the government is granting you, and is similar to scholarships in that way. You do not pay it back. b.
How do you complete the FAFSA? Go to www.fafsa.gov after October 1st. You can also download and use the myStudentAid app. The priority date to apply for the FAFSA is December 1st.
Federal Student Aid ID (FSA ID) When you apply for the FAFSA, the student and at least one parent/guardian needs to create a FSA ID. You will be prompted to create your FSA ID if you don t already have one, or you can go to https://fsaid.ed.gov. REMEMBER your FSA ID. You will use this when filling out the FAFSA in future years. Do NOT share your FSA ID with ANYONE.
Linking to the IRS The FAFSA determines your financial aid by assessing student AND parent taxed income from Federal 1040, untaxed income, and some assets. The fastest and easiest way to provide this information is to link to the IRS Transfer Service. If you cannot do this, you will need to have your tax return in order to provide the necessary information. Information NOT reported on the FAFSA includes: retirement accounts (401K; pension; etc.), the home you live in, and family owned business (less than 100 employees) including family farm or ranch.
Student Dependency Status You are 24 or turning 24 in academic year Working on your graduate degree (completed Bachelors) Married, veteran, active duty, or have dependents that you support more than 50%. Since turning 13, became an orphan, in foster care, or was a dependent, or ward, of the court. Emancipated minor at age of majority In a court appointed legal guardianship with someone other than your parent
Divorced Parent Information on FAFSA For Divorced/Separated/Remarried Parents: 1. Who did the student live with the most in the last 12 months 2. If #1 isn t clear, who provided the most financial support in the last 12 months? 3. If neither #1 or #2 isn t clear, choose the parent who most recently provided support 4. Stepparent s information is ALWAYS included Note*: Both legal parents (biological or adopted) incomes are used if living together, regardless of marital status or gender.
How far does the money go? The money awarded doesn t change whether or not you go to a private school, public school, or trade school. For Example: if awarded $5,500 in loans, $2,500 in work study, and a Pell grant of $6,195, this would equal $14,195. This goes to whatever school the student chooses. If a private school costs $40,000 a year, you will still owe $25,805 for that year. If a 2 year school costs $15,000 a year, you will owe $805.
Why Complete the FAFSA? Even if you don t think you will take out loans, or qualify for grants/work studies, it is to your benefit to complete the FAFSA if you want to be considered for certain scholarships. Some scholarships require you to complete the FAFSA prior to applying for them, and other scholarships are actually FOR completing the FAFSA.
Any questions? If you have questions, please refer to the www.fafsa.gov website. You can also gather information by contacting a financial aid office through one of our local universities. Below is a link that will take you to a 3 minute video that goes over how to fill out the FAFSA. Remember, the priority deadline to complete the FAFSA is December 1st. https://www.youtube.com/watch?v=LK0bbu0y5AM&feature=emb_title
