FAFSA: Understanding the Process of how to apply for Financial Aid
If you were to ask an employer how final hiring decisions are made, they might tell you how to make your resume stand out among the hundreds that get submitted. There are few things more beneficial to one’s future – and to having your resume stand out — than earning a college degree. Unlike the generations before us, opportunities presented to college graduates, as well as future earning potential, are on average higher to those in possession of at least a Bachelor’s degree.
Higher education is expensive. In order to achieve this dream, it is crucial for you as the student or parent to understand the process of student financial aid to make sure you explore all the options available to you. All students and families are expected to contribute towards the cost of their college education but how much depends on your financial situation and the financial situation of your family.
The Free Application for Federal Student Aid (FAFSA) is the form that the Department of Education uses to evaluate and determine the EFC (Expected Family Contribution). Therefore, the process for determining how you will fund your (your child’s) education starts by filling out a FAFSA. The FAFSA is the benchmark by which nearly all colleges and universities use to determine eligibility for federal, state, and college-sponsored financial aid which includes loans and grants.
After successful submission of the FAFSA, the Department of Education evaluates your assets, income, and other household information in order to come up with the EFC. Each academic year, you need to only fill out the FAFSA form once. For first time applicants, if you list the colleges and universities to which you are applying for admission, the Department of Education will electronically transmit the FAFSA to those schools. It is also important to note what forms each school requires – some schools may ask for additional supplemental information in order to get a full view on what your financial situation is like.
Types of Student Financial Aid
Each year, the cost of higher education rises. Figuring out how to pay for your degree without taking on massive loans is a hard task. The good news is that nearly every student is eligible for some type of financial aid regardless of your income circumstances. If you qualify, the options available may include:
- Federal Pell Grants
- Stafford Loan
- Parent PLUS loan
FAFSA Eligibility
To be eligible for some form of student financial aid, you must:
- be a U.S. citizen or an eligible Non-U.S. citizen
- have a valid Social Security number
- have a high school diploma or a GED
- be registered with the U.S. Selective Service (if you are a male between the ages of 18-25)
- complete a FAFSA promising to use any federal aid for educational purposes only
- not owe refunds on any student loans
- have not been found guilty of the sale or possession of illegal drugs during a period in which federal aid was being received
