I know that filling out the FAFSA (Free Application for Federal Student Aid) can be a daunting task. For a couple of years I worked in a university Scholarship and Financial Aid Office and people always had difficulty when it came to understanding the parts of the application. You can either obtain a physical application for the current academic school year from your school's Financial Aid Office or you can fill out an application electronically online using the FAFSA website. Note: It is generally easier and goes faster to apply online. It is important that the STUDENT be the person to complete the form as it will be the students' responsibility to repay loans and understand their rights and obligations.

The FAFSA in a nutshell: The Federal Government needs to know information about your finances to establish how much federal money you are entitled to. If you are under 24, are unmarried, have no dependents, and are still claimed by your parents for tax purposes then you are considered a dependent student; you must provide financial information about yourself AND parents. If you are over 24, are married, have a dependent, live on your own (for at least a year), or if you are experiencing hardships with your folks ie. you are estranged and for some reason they do not provide for you) you can be considered an independent student. In some cases you will still need to file as a dependent but then can submit an appeal for aid to your Financial Aid Office; ask to speak with a Senior Financial Aid Officer (they really know their stuff).

In general, you should fill out the application shortly after taxes get filed. That way you have the necessary documents for filing and have easy access to tax information. When applying, you should be applying for the current academic school year. For example: if the year is 2009 and you have just filed taxes (in February) you should be applying for 09-10 school year. It is possible to file at any time during the year as the feds work numbers and give aid on a rolling basis. It's much better not to wait until the last minute as FREE money, grants, are given out on a first come first serve basis. There are deadlines that are not extremely strict, but money does indeed run out.

How it all works: FAFSA is a government based program for financial assistance. When you enter in your parents and your information into the system, the Department of Education (DoE) takes all of the numbers and determines what your Expected Family Contribution (EFC) is. Then, based on the EFC, the DoE is able to allocate funds for you. Sometimes the only money they are able to offer is loan money. These loans are most often better than loans that are offered by banks. They have a lower Annual Percentage Rate (APR) and the APR is sometimes set at a fixed rate; nice! There are two types of loans offered: 1) Subsidized Loans and 2) Unsubsidized Loans. Subsidized loans are awarded based on a certain level of need. With this type of loan, you don't get charged any interest until after you begin the repayment phase. The government subsidizes the interest while you are still in school. Unsubsidized loans begin accruing interest from the time the money gets dispersed until the loan is all paid back. A way to keep the interest from growing hugely is to begin paying it back as it accumulates. Unsubsidized loans are more frequently offered as you don't have to have need in order to have it awarded. Other money that can come from the DoE is Federal Grants. These vary based on what state you come from and are generally need based. There are also academic grants, but more often than not, they are offered by the academic institution.

Don't expect the FAFSA process to be a quick one! There are thousands upon thousands of applicants and, to the DoE, you are just a number. There are frequent mistakes made on applications, so be careful to take your time and thoroughly read the questions. If you have any hesitations it's better to tend to them before you submit rather than waiting to be told that you missed something or need to make a correction after submission. Although the waiting time can be long (on the phone of via email) it's worth the wait.

Talk to your Financial Advisor! The more you talk and ask questions, the more likely you are to be the recipient of aid that doesn't need to be paid back. Financial Aid Offices have resources that they don't broadcast or announce if not requested. If you are clearly in need and show an active interest you are more likely to be helped.

FAFSA

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