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Online FAFSA @ www.fafsa.ed.gov
To apply for most financial aid, you’ll need to complete the Free Application for Federal Student Aid, or
FAFSA. Whether you apply on paper or electronically, you can file only one FAFSA each school year. Work with each college's financial aid office to be sure you meet the requirements and deadlines for all the financial aid programs you're applying for. File the FAFSA as soon after January 1 as possible. (You can't apply before January 1- if you do, your application will be returned unprocessed.)
Some schools require additional applications like the College Board's CSS Financial Aid PROFILED to help them award private financial aid. Unlike the
FAFSA, the PROFILE costs money to file and to send to each school that requests it. The PROFILE can be filed before January 1. To learn more, contact your college financial aid office, call the toll-free PROFILE number at 1.800.778.6888, or go to
www.collegeboard.org.
It’s As Easy as 1,2,3.
- Complete the FAFSA
The FAFSA lists deadline for federal state aid. Check deadlines! Schools and states may have their own deadlines for aid.
- Review your SAR (Student Aid Report)
One to four weeks after you submit your FAFSA, we will send you a SAR. The report confirms the information reported on your application and will tell you your Expected Family Contribution (an amount you and your family are expected to contribute toward your education, although this amount may not exactly match the amount you and your family end up contributing).
- Contact the school(s) you may attend.
Talk with the financial aid administrator at the schools you're interested in attending. They will review your SAR and prepare a letter outlining the amount of aid (from all sources) that their school will offer you.
You may get a FAFSA from:
A high school guidance Office;
A college financial aid office;
A local public library;
The Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243);or
Online at www.fafsa.ed.gov;
FAFSA on the Web at 1-800-801-0576;
FAFSA Express at www.ed.gov/offices/OSFAP/Students/apply/fexpress.html;
Help in completing the FAFSA at.www.ed.gov/prog_info/SFA/FAFSA;
FAFSA Tips
The FAFSA asks you for information about your finances. Here are some tips to help you successfully complete the application.
1. Do your homework. Study this workbook so you'll know how the financial aid process works, your options, and deadlines.
2. Get an early start. Pick up the FAFSA at your high school in November. Even if you'll be filing online, you can get a head start by completing the paper one first.
3. Be neat. Use a pen with black ink as instructed. Print clearly and neatly in capital letters. Your FAFSA will be scanned so neatness can mean fewer corrections. Don't use a FAFSA that's torn, crumpled, or stained.
4. Do it right the first time. Read all instructions thoroughly. Work through each step carefully. Be accurate and careful not to make mistakes. It's easier to fill out the FAFSA if you have a completed 2000 tax return, but if not, you can use estimates rather than missing a deadline. Estimated numbers can be corrected later on your Student Aid Report.
5. Use your name as it appears on your Social Security card. Using a nickname or other name will delay processing.
6. Set aside a good four hours or more. Gather these materials ahead of time:
- The FAFSA and any additional application materials required by the college
- Your Social Security number. If you don't have a SSN, apply for one at your post office or Social Security office.
- Family financial records, including 2000 federal income tax return, with all schedules; W2 forms and other records of 2000 earnings; current bank statements, investment information, business or farm records; and records of veterans' benefits, Social Security payments.
7. Write only in the response areas and boxes. Keep the margins clean.
8. Answer all financial questions. If your response is zero, or the question doesn't apply to you, enter an o. Using a symbol such as N/A or a dash could invalidate your whole application. Make a list of unanswered questions and check to be sure each has been answered before filing.
9. Don't skip the drug question. It asks if you have been convicted of a drug-related offense. A drug-related conviction doesn't necessarily make you ineligible for aid. Call 1-800-433-3243 or contact your financial aid administrator if you have questions.
10. Do not attach anything to the FAFSA. Send any additional information regarding your special circumstances directly to the financial aid office at each college you're considering. Contact each one first to see how and when the information is needed. Be sure to put your name, date of birth, and Social Security number at the top of each page.
11. Be sure you and a parent, if required, sign the FAFSA. Unsigned forms will not be processed.
12. Make a photocopy or keep a printout of your FAFSA. Also keep copies of all financial records you used to fill out the FAFSA.
13. Do not mail, or even date, the FAFSA before January 1. If you do, it'll be returned unprocessed and you'll have to file again.
14. Get help, if you need it. Contact your high school counselor or college financial aid administrator, call the Federal Student Aid Information Center at 1-800-433-3243 (or 319-337-5665 if you're out of the country) Monday through Friday between 8 a.m. and 8 p.m. Eastern time, or go to www.ed.gov/studentaid. TTY users may call 1-800-730-8913.
Take Special Note of the Following Tips When Completing Questions Regarding Income on the FAFSA:
1. If you estimate your income on the Free Application for Federal Student Aid (FAFSA), don't overestimate. Using too high an income figure can have a significant impact on your expected family contribution. If possible, do your taxes early, so you can use the correct figures instead of estimating.
2. Be careful when reporting the amount of taxes paid. Many people confuse the amount of withholding (the figure from the W2s) with the amount of taxes paid. Don't make this mistake.
3. Avoid incurring capital gains during the base year. Capital gains are treated like income. Sell the stocks and bonds during the sophomore year in high school. If you must sell the securities while your child is in college, wait until April of their junior year, when their last financial aid application has been filed. If you sell the securities during their freshman, sophomore, or junior year in college, it will reduce their eligibility for aid during the subsequent year. You could try to compensate by selling some of the losers in your portfolio. Note that many schools do not allow offsetting losses. For example, you cannot use capital losses to offset your salary.
4. Do not take money out of your retirement fund to pay for educational expenses. Retirement funds are sheltered from the need analysis process. If you withdraw too much money from your pension, or withdraw them before the financial aid application is filed, you will have converted them into an included asset. It is much better to spend your liquid assets, such as cash in bank accounts, first.
When you withdraw funds from your pension, you may incur a penalty. It may be better to borrow money from the pension, if possible. You cannot borrow against your IRA, but you may be able to borrow against your 401(k) plan.
5. In certain circumstances, a slight decrease in the parents' income may yield a significant increase in eligibility for Federal financial aid. If both of the following are true:
o The parents' adjusted gross income is under $50,000
o All family members are eligible to file an IRS Form 1040A or IRS Form 1040EZ income tax return or aren't required to file
then the family qualifies for the Simplified Needs Test which disregards assets when determining the expected family contribution. So if the family has a substantial amount of assets and the parents' income is close to $50,000, the parents should consider taking steps to reduce their income below the $50,000 threshold. (There is also a special test called Automatic Zero EFC which applies when the parents' income is less than $12,000.)
Some methods of reducing the parents' income include:
o Taking an unpaid leave of absence.
o Incurring a capital loss by selling off bad investments.
o Postponing any bonuses until after the base year.
o If the family runs its own business, they can reduce the salaries of family members during the base year. (This will only have an effect if the family business is a C corporation. S corporations, partnerships and sole proprietorships will pass through their income to the owners.)
o Making a larger contribution to retirement funds.
Note: Making a larger contribution to the parents' retirement funds doesn't normally affect eligibility for financial aid, because the contribution gets counted in the formula as untaxed income. It only works in this case because the Simplified Needs Test depends on the AGI and not the total income or total available income.
For complete information on completing the FASFA, see Understanding and Completing the FASFA under Getting Started.
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