FAFSA is an official form that must be attended to by families while applying for Federal Student Aid to pay for college. It is also a set of standards for making financial decisions in many colleges, universities, and states.
WHAT YOU SHOULD KNOW
- Firstly, do you know that the Free Application for Federal Student Aid (FAFSA) is used by the federal government. To determine a family’s eligibility over the grant. Student loans, and work-study?
- Also, do you know that States. Individual colleges and universities, and private scholarship programs have made FAFSA a standard. For making their own financial decision?
- Thirdly, do you also know that family tax returns. Contain as much information as demanded by the FAFSA. And can be downloaded quickly from IRS in many scenarios?
- Lastly, FAFSA is an acronym. That stands for Free Application for Federal Student Aid.
Annually, the Federal Student Aid under the U.S. Department of Education. Offers over $120 billion for the provision of federal aid. To 13 million students. The aid is inclusively grants. Work-study, and loans.
Federal Student Aid –
Grants may come in the form of scholarships. This package is designed for students with “exceptional financial need”. And because of that, there is not expected to pay back. The commonest grants. Available are the Pell Grants.
This program designed to provide payment. As a part-time job for undergraduate and graduate students. Under participating colleges and universities.
A loan is the opposite of what you get from grants or scholarships. This is because you must eventually repay the aid. Loans can be obtained from the federal government or private lenders. The difference is that federal loans would always have low-interest rates. Compared to private lenders. There are four major types of federal loans. Such as Stafford loans for higher education students. Direct Subsidized loans provided for families and will require checking out for financial needs. Direct Unsubsidized loans for families without checking for their Needs. And Direct PLUS loans for parents and graduate. Or professional students without considering the financial needs.
However, the FAFSA will be administered by the office of Federal Student Aid. Thus, it stands as a pathway to getting all types of aid.
The need for FAFSA is to extract certain answers for the financial status of the student. Using it to establish their Expected Family Contribution (EFC). This is simply the amount that the parents are expected to be able to pay. From their pocket each year for the student’s college costs. By federal rules. FAFSA is largely used by the federal government. Colleges state assistance programs, and other scholarship forums to determine the amount of aid, kind of aid eligible to a family.
How to Fill Out the FAFSA
Furthermore, this is usually a long list filled with questions and requirements. hat is above giving immediate answers. This should be done every year in order to maintain their financial aid.
The FAFSA will want to find out identifiable information of the student and their parents – Such as name, address, social security number, date of birth, etc. This is to create a system that fights for a detailed examination of their finances.
However, the parents and the students will need to supply information pertaining to their income and assets such as real estate and more, aside from the family home or small business venture.
Another set of information can be gotten on the family’s tax returns. Through the IRS Data Retrieval Tool, it is very possible to download the information needed directly to the FAFSA.
To avoid wasting time, you should have your brokerage, mutual fund statements, and bank statements at hand while you fill out the form. Now to access the printed FAFSA form online, visit the site https://studentaid.gov/sites/default/files/2019-20-fafsa.pdf. This can be faster compared to the handy version.
For every year, the FAFSA is made available on October 1 and submitted by the following June 30 on the long side with the upcoming school year. There is a deadline for FAFSA and should be that you fill out the form as early as possible.
There is also an alternative to FAFSA; CSS Profile. FAFSA is best known and that doesn’t mean that there are no alternatives which are CSS Profile. The CSS Profile is administered by the College Board and it is used in several hundred colleges, universities, and private scholarship programs to achieve the same purpose that FAFSA does. They equally ask similar questions as FAFSA does. It exposes more financial areas in drafting the student’s eligibility.