The basics of applying for federal student financial aid
The cost of pursuing postsecondary education can be overwhelming. However, most students enrolled in higher education institutions don’t pay full tuition. In fact, the latest statistics available show that around 85 percent of students enrolled in four-year colleges and 80 percent of students enrolled in two-year schools receive financial aid. While every situation is different, we believe there is an affordable option for everyone. The first step is to complete the Free Application for Federal Student Aid, or FAFSA.
What exactly is the FAFSA? The FAFSA is the Free Application for Federal Aid from the U.S. Department of Education that determines your financial aid from the government and most colleges. Once you complete your FAFSA, your information is processed by the federal government and sent to the institutions you are applying to. Your schools will analyze your circumstances and send you a letter outlining your financial aid package. This is a breakdown of what it costs to attend their school, what they estimate you and your family can contribute to your education, the amount of grants and institutional scholarships that you may be eligible for and what loans are available to you.
The FAFSA should be submitted for each school year to qualify for grants, scholarships, federal work-study and federal student loans. Grants are usually given to students who have financial need. The most common federal grant is the Pell Grant. Work-study jobs are also awarded on a need-basis; you might work at the bookstore, library, or even the admissions office at your college. Schools also use information from students’ FAFSAs to determine what type of loans to offer them. The most common federal loans for undergraduates are the Direct Subsidized, the Direct Unsubsidized and the Direct PLUS loans.
Each year, the FAFSA opens on Oct. 1 for the following academic year. FAFSA deadlines vary for federal, state and institutional aid. Many schools have FAFSA priority dates or deadlines in early January. It is a good idea to submit the FAFSA as early as possible to improve your chances of qualifying for the most grant, scholarship and work-study aid. You can complete the FAFSA online at fafsa. ed.gov.
While all schools require the FAFSA, many private schools also require the CSS or College Scholarship Service Profile, a more detailed inventory of your family’s assets. You can fill out the CSS online at cssprofile.collegeboard. org/.