Focus on Financial Aid: The Basics

If you wince when you look at a college’s tuition and fees, this article is for you. Financial aid can help students pay for their college education through grants, loans, and jobs. But to get financial aid, you need to apply for it.

“The first thing to keep in mind is that the [financial aid] process is a lot easier than you imagine,” says Bill Ryan, acting director, Student Aid Awareness, Student Financial Assistance (part of the U.S. Department of Education).

Don’t believe it? Then read on to get the basics of financial aid.

It’s Free!
In the world of financial aid, FAFSA is the acronym to know. FAFSA is the Free Federal Application for Federal Student Aid, which all U.S. colleges require students to submit for financial aid. Sending in the FAFSA means you’ll be considered for aid from the U.S. government, such as the Pell Grant, Perkins Loan, Stafford Loan, and Federal Work-Study. State governments and individual colleges also use the FAFSA to assess whether you need more financial help than the U.S. government can give.

You can fill out the FAFSA application online (or from your guidance counselor if you do not have access to the Internet). As you can tell by the name, the FAFSA is free.

It’s Online!
Both the Department of Education and college financial aid officers encourage students to consider completing the FAFSA on the Web.

“We really emphasize doing the FAFSA online,” says Jim Craig, director of financial aid at Montana State University at Bozeman. “The information is more correct.”

Because the online FAFSA has built-in logic, it helps you avoid some of the errors common to the paper form (like accidentally skipping a question). You’ll also cut the time it takes to process your application and get back to you.

“We have seen great success (fewer mistakes, less rejected FAFSAs, and faster turnaround) from the Web product,” says Ann Hendrick, director of financial aid at Millsaps College (MS).

Of course, the paper FAFSA is just as valid, and it may be easier for people who don’t have easy Internet access or who are uncomfortable using computers.

Apply Now!
January is the month to fill out the FAFSA if you’re planning to attend college this fall. (It won’t be accepted before January 1, but get it in as soon as you can after the first.) The early bird definitely gets the worm when it comes to financial aid. Your state may have an early deadline for aid applications. And colleges only have a certain amount of money in their financial aid budgets. If you’re late, the money could be gone.

One reason students and their parents delay filling out the FAFSA is that it asks for numbers from their income tax forms. Unless you can complete your income taxes in January, don’t wait until they’re done to start on the FAFSA.

“It is better to make your best estimate” and update later on, says Ryan.

A few weeks after you submit the FAFSA, you’ll receive a Student Aid Report (SAR) in the mail. Check it carefully to make sure that there are no errors. If you made estimates and now have the “real” numbers, update them on the SAR and send it back. If you made any corrections on your SAR, you’ll receive a second one to confirm your corrections.

But Wait! There’s More!
The FAFSA is not the only form in town, although it is the only one required by all colleges. Some colleges do require students to fill out other forms in addition to the FAFSA.

One common form is the CSS Profile, which is administered by the College Board. The Profile asks for additional information that may not be on the FAFSA. It may have different questions depending on which colleges you’re sending it to. Unlike the FAFSA, the Profile has a fee: students must pay a $5 registration fee plus $18 for each college to which a report is sent.

Some colleges don’t use the Profile, preferring instead to send students their own form.

For More Information, Call Now!
Do all these forms have your head spinning? No need to panic. Your first source of information on financial aid applications is the colleges themselves. If you’re not sure which forms to send to which colleges, call the colleges’ financial aid offices and ask. While you’re on the phone, double-check their financial aid deadlines.

And if the FAFSA is getting you down, visit the FAFSA Web site or call 1-800-4-FED-AID (1-800-433-3243).

Written by Jennifer Gross.