Unlocking Financial Aid: Clarifying the FAFSA
Last updated: November 16th, 2023 • 5-6 min read
When it comes to financing your education, a five-letter acronym can play a crucial role in determining how much support you receive: FAFSA. But, what is the FAFSA, and why is it so important?
What is the FAFSA?
FAFSA stands for Free Application for Federal Student Aid. This application is used by the U.S. Department of Education to determine your eligibility for financial aid programs, including grants, scholarships, work-study opportunities, and federal student loans.
Essentially, the FAFSA is a free application to access financial assistance for your education after high school.
Why is the FAFSA Important?
1. Access to Federal Aid:
The biggest reason to complete the FAFSA is because it opens the door to federal financial aid. This can include “free money” such as the Pell Grant, which is awarded to undergraduates based on financial need, and doesn’t need to be paid back.
Additionally, it's also your ticket to borrowing money in the form of federal student loans, including Subsidized, Unsubsidized, and Parent Plus Loans. Looking to learn more about the differences between these federal loans? Click here!
2. State and Institutional Aid:
Educational institutions utilize the FAFSA to assess eligibility for state-based and institutional financial aid. Completion of the FAFSA substantially enhances the likelihood of accessing these funds.
TIP: Each institution will use the data from your FAFSA to calculate financial aid; therefore, it is essential to include every institution to which you are applying.
3. Scholarships and Grants:
Many private scholarships and grants also require FAFSA completion as part of their application process. So, if you want to maximize your scholarship opportunities, submitting the FAFSA is a top priority.
4. Work-Study Opportunities:
The FAFSA can qualify you for the Federal Work-Study Program, where institutions and campus partners are given money from the government to provide part-time employment for need-based individuals. Unlike other funding that is used to cover tuition costs, Work Study funds are intended to help students cover the cost of day-to-day expenses.
At this point, you may be asking “What is the difference between a loan, a scholarship, a grant, and the federal work study-program? Luckily, the Federal Student Aid website has in-depth descriptions and a helpful video breaking down the differences between these types of aid!
How to Complete the FAFSA
1. Gather Your Materials:
Before you begin, make sure you have the necessary documents on hand. This includes your Social Security number, tax records, bank statements, and information about any investments or assets.
TIP: Find more details about what you need to fill out the FAFSA here!
2. Create an FSA ID:
You and your parents and/or legal guardians (if you are a dependent student) will need to create a Federal Student Aid (FSA) ID. This serves as your electronic signature and is used to access your FAFSA information online.
TIP: Make sure to keep track of your FSA ID since you will use this for your FAFSA application every year.
3. Fill Out the FAFSA:
You can complete the application online through the official website, studentaid.gov. Due to recent changes from the FAFSA Simplification Act, the form will not be available until December 1st, 2023 this year.
TIP: Be sure to fill it out as soon as possible as some financial aid programs award funding on a first come, first serve basis.
Curious to hear more about the other changes included in the FAFSA Simplification Act? Learn about these adjustments through this link.
After Completing the FAFSA, What Comes Next?
1. Double-Check Your Information:
It's crucial to review your FAFSA for accuracy. Errors or omissions can lead to processing delays or inaccurate financial aid determinations.
2. Review:
After submission, you'll receive a Student Aid Report (SAR) that outlines your Student Aid Index (SAI)—previously known as Expected Family Contribution (EFC). The SAI is determined based on the information you provide on your FAFSA, and this number helps institutions determine your individual financial need. Review your SAR carefully and make any necessary corrections.
TIP: Did you know that you can estimate what your SAI might be? Use this helpful Student Aid Estimator to see how much aid you may be eligible for in the 2024–2025 award year.
3. Stay in Contact:
It’s important to be aware that some institutions may have additional financial aid requirements, so make sure to stay on top of all communication with any schools you’ve applied to.
Where to Find More Information
1. Federal Student Aid Information Center:
Contact the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) or visit their website at studentaid.gov.
2. Your School's Financial Aid Office:
The financial aid office at the institution you plan to attend can provide personalized guidance and answer specific questions about your financial aid package.
In conclusion, the FAFSA is a vital tool in your journey to securing financial assistance for your postsecondary dreams. By understanding what the FAFSA is, why it's important, and where to find resources for more information, you'll be well on your way to making informed financial decisions for your education. Have questions? Contact us at contact@inspireducationohio.org.