FAFSA: Federal Student Aid Explained
Federal Student Aid
The first website you MUST visit when applying for financial aid is the Federal Student Aid website.
Federal Student Aid, a part of the U.S. Department of Education, is the largest provider of student financial aid in the nation. The office of Federal Student Aid provides more than $120 billion in federal grants, loans, and work-study funds each year to more than 13 million students paying for college or career school.
Regardless of your income, or that of your parents, it is important that you fill out the Free Application for Federal Student Aid (FAFSA). This is a form that is filled out each year by current and prospective college students in the US to determine their eligibility for student financial aid. Every year, thousands of students miss out on funding because they think that they do not qualify and do not bother to fill out this form. In 2014 this amounted to a staggering $2.9 billion in unused federal grant awards! Make sure that this is the first financial aid website you visit: https://fafsa.ed.gov/
Submit your application on October 1 for 2020.
The financial aid comes in several types, the most common of which are:
-
- The Pell Grant – a grant of up to $6,195 (for the 2019-2020 Award Year) for students with a low expected family contribution. It depends on factors such as the amount of your Expected Family Contribution (EFC) and whether you are a full-time or part-time student how much money you can get. (Find Money)
- The Stafford Loan – consisting of a Federal Direct Subsidized Loan (the interest is paid by the government while the student is enrolled at least half time) and the Federal Direct Unsubsidized Loan (the interest accumulates onto the outstanding balance) (Find Money)
- The Federal Work-Study Program – a program where students can get part-time on work, up to a certain amount. In most cases, the federal government pays half of a student’s wage and the school pays the other half (Make Money)
Check if you are eligible for any grants or loans:
Avoid these mistakes:
- Not filling out the FAFSA – there is no income “cut-off” and you may need the application to qualify for scholarships and loans from both colleges and private organizations.
- Not using the official government FAFSA website. Remember you never have to PAY to fill out the form.
- Waiting to fill out the FAFSA – some states and colleges run out of money early and you may need the
- to apply for their money.
- Not filling in the FAFSA by the state and school deadlines – some are very early and the earlier you file, the more financial aid you may receive.
- Not having your FSA ID ready when filing your FAFSA. It may take up to 3 days before you can use your FSA ID to sign your FAFSA electronically, so don’t wait to get it.
- As a parent using the student’s FSA ID. Instead use the option: Enter the student’s information.
- Not using the IRS Data Retrieval Tool. It is fast and easy to use and the most accurate way to transfer your tax return information into the FAFSA form.
- Not reading the questions and/or definitions carefully. Especially pay attention on what should, or shouldn’t be included in the response.
- Not providing requested information or providing incorrect information.
- Not listing all colleges you are considering on your FAFSA form.
- Not signing the FAFSA form.
- Using or selling drugs.
Important
If you are convicted of possessing or selling drugs after you submit your FAFSA, you must notify the financial aid administrator at your college immediately. You will lose your eligibility for federal student aid and will be required to pay back all aid you received after your conviction.
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