Should I fill out the FAFSA?
This free federal application is your ticket to scholarships, grants and loans for college
By Laura Jeanne Hammond, 8/17/09
Looking for scholarships, grants, student loans or on-campus job opportunities? Looks like you’ll be filling out the Free Application for Federal Student Aid (FAFSA).
The FAFSA is also used by many colleges to determine eligibility for their own institutional financial aid programs. Use it as motivation to do your taxes early—and do it as soon after January 1 as possible. The FAFSA could be your ticket to free money from the government or your college, low-interest student loans or a work-study job.
Fill out a FAFSA for every year you’re in college, no matter how much aid you think you will (or won’t) receive. You’ll have a hard time getting any tuition help if you don’t apply.
Know what you’re getting
A grant is free money that doesn’t have to be paid back, like a scholarship. Loans must be paid back in full with interest. Your lender will spell out the terms of your loan agreement, including when you will start paying it back, how often you will make payments and how much each payment will be.
Student loans are common and effective ways to pay for your college education as long as you’re clear about how much and how quickly you’ll have to pay them back.
Do it yourself
You can find a FAFSA in college admissions offices or online at fafsa.ed.gov.
Don’t forget to sign it
If you fill out a paper version of the FAFSA, don’t forget to sign it before turning it in! The form cannot be processed without your signature. If you fill out the FAFSA online, you’ll receive a unique PIN that will allow you to start, save, access and “sign” your application online.
Learn the lingo
EFC, SAR, COA…the road to financial aid can be flooded with alphabet soup. After your FAFSA is processed, you’ll receive a Student Aid Report (SAR) to review. The SAR compiles your FAFSA info to determine your estimated family contribution (EFC). The EFC is based on your investments, savings and other assets that could be used to pay for college. Colleges use your EFC to determine your financial need by subtracting it from the school’s cost of attendance (COA).
The difference is your financial need, which determines how much loan and grant help you’ll need.
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