Financial Aid. FAFSA.
- Terri Murai, Mosaic Consulting
- Mar 13, 2017
- 2 min read
Every year on October 1st, families who have students attending college should spend 45-minutes to complete the Free Application for Student Aid (FAFSA).
Why? 1) It's FREE to apply for financial aid. 2) It's the only way to access potential institution merit aid, as well as, federal need-based aid. 3) If loans are necessary, qualify for the lowest interest rates.
Calculating Expected Family Contribution (EFC)
Completing FAFSA is the official process to determine your EFC. The EFC is the amount families are expected to contribute towards the cost of college.
Prior to completing the FAFSA, families can use the EFC Calculator to estimate their EFC. Once you have estimated your EFC, use the equation to determine the estimated financial aid need.
Financial need = COA (Cost of Attendance) - EFC
Possible Financial Aid
Once your financial need is calculated, you may qualify for various types of financial aid. Here is a summary of what is available:
Grants you do NOT have to pay back.
Federal Supplemental Educational Opportunity Grant (FSEOG)
Teacher Education Assistance for College and Higher Education (TEACH) Grant
In some cases, institution grants and scholarships.
Loans you DO have to pay back.
Direct Subsidized Loans
Direct Unsubsidized Loans
Federal Perkins Loans
Direct PLUS Loans
Part-time, generally on campus, jobs by which the money is applied towards cost of attendance.
September
For First-Timers completing the FAFSA, create a FSA ID
A parent AND the student must create an FSA ID before completing the online FAFSA application for the first time.
Write down your FSA ID and password! You will need this information ANNUALLY as you update the FAFSA information each year your student is attending college. You will even need this information years down the road if you intend to apply for financial aid for graduate school and beyond.
Information to Gather BEFORE Completing the FAFSA
Your Social Security Number
Your Alien Registration Number (if you are not a U.S. citizen)
Your most recent federal income tax returns, W-2s, and other records of money earned. (Note: You may be able to transfer your federal tax return information into your FAFSA using the IRS Data Retrieval Tool.)
Bank statements and records of investments (if applicable).
Records of untaxed income (if applicable).
Your FSA ID to sign electronically.
The online FAFSA application provides access to federal, state and institution financial aid (need-based, as well as, merit aid). FAFSA Video.
Why Complete the FAFSA ASAP?
Access federal, state and institutional financial aid. Need I say more? Financial aid can be allocated on a first come, first serve basis, so it's important to submit the FAFSA while funds are available.
Get it out of the way so you can focus on other things, such as college applications, academic coursework, and/or applying for scholarships.
If you submit your FAFSA early there’s a chance colleges will provide financial aid offers early, giving you more time to compare colleges options before the college decision deadline.
More scholarship eligibility. Some scholarships look at your FAFSA results—and some of those scholarships have early deadlines. Don’t disqualify yourself from those scholarships.
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