Time to get next year’s college financial aid What happens next?
The school season may have just begun, but it’s nearly time to think about next year.
That’s because college students and their families can begin to submit two key applications for financial aid on Oct. 1 to help pay for higher education for the following school year. Filing early has its perks: better access to limited funds and a quicker response from schools on aid packages.
The basics
The Free Application for Federal Student Aid, or FAFSA as it is known, is one of the most critical documents to getting financial help.
Current and prospective undergraduate and graduate students must fill it out annually if they want to get access to federal loans, grants and work-study programs. Some states use the information to determine state-based aid.
It’s free to apply and can be completed between Oct. 1 and June 30. Until a few years ago, applicants had to wait until January to file the FAFSA, but the U.S. Department of Education bumped up the deadline and made it easier to apply. Still, not everyone has caught on.
A survey of 2,000 families by Sallie Mae found that only 25% of families filled it out in the first month and 52% waited until January or later. But a number of forms of aid are awarded on a first-come, first-served basis, so it pays to move quickly, said Rick Castellano, a spokesman for Sallie Mae.
Some students may also want to complete a CSS Profile, which about 400 private and state schools use to determine institutional aid.
The CSS can also be completed as early as Oct. 1, but deadlines vary by school. It requires much of the same information as used on the FAFSA. Unlike the FAFSA, it costs $25 to complete the profile for one school with additional fees for further schools. The cost might be waived for students in need.
How does it work?
Anyone planning on pursuing higher education should fill out a FAFSA to see what kind of aid they’re eligible for.
It can be completed online at studentaid.gov/fafsa or via the myStudentAid app released last year. Students and their families need Social Security numbers, recent tax returns, some basic financial information, as well as a list of schools they are interested in and other information.
Students should check the websites of prospective schools to find out whether they need to complete a CSS profile and other school-specific paperwork or deadlines.
After you’ve completed the FAFSA, the U.S. Department of Education will process your application within a few days (or around a week if you submitted on paper.) Once it’s processed, you’ll get a copy of your student aid report, or SAR, which summarizes the information you provided. Review it and make sure all information is accurate. If there are errors or omissions, complete or correct those as soon as possible.
The SAR will include your expected family contribution, a figure that determines your eligibility for aid. The SAR is sent to the schools you listed and each school will review and determine what aid, if any, it can provide. You can list up to 10 potential schools on the FAFSA.
Castellano notes that to be considered for state grants, some states require you to list state schools first.
If you feel that your family’s financial circumstances are unusual or if they change dramatically after you file the FAFSA, contact the financial aid office at the schools you’ve applied to. They can update the information before making a decision.