The Importance of FAFSA
FAFSA stands for Free Application for Student Aid. This application is how the federal government (specifically the U.S. Department of Education) determines which students that apply are eligible for federal grants. Grants are awarded generally based on an applicant’s financial need, usually determined from the family’s household income reported on the FAFSA.The FAFSA is managed by the Office of Federal Student Aid, a part of the U.S. Department of Education, that is the largest provider of student financial aid in the nation, awarding over $120 Billion in financial aid each year to help students pay for college.Grants are sources of free money and, unlike loans, do not have to be repaid and are awarded on a first-come, first-served basis . If you receive a grant, it will be listed on the financial award letter sent by the school. This can arrive with your acceptance letter, but can also be a sent letter.The FAFSA form can be found at fafsa.gov. Applicants can apply directly online, and then sign back in to make corrections, add schools to their list, and view their Student Aid Report. There are 3 options for filling out the FAFSA
- Login to apply online
- Print out a PDF version
- Request a paper FAFSA be sent to you by calling 1-800-433-3243
NOTE: Students have to fill out the FAFSA form every year they are in school in order to stay eligible for federal student aid.It is important to remember that you do not have to apply to all schools that are listed on your FAFSA form, so go ahead and list all schools you may be interested in applying to in the future, as you will be under no obligation to apply to them. Also remember to go add any school that you apply to but that is not listed on your FAFSA, that way you can receive a grant award from all schools you are considering.Students can start applying for FAFSA as early as October. This means that the 2018-19 FAFSA form will be available on October 1, 2017. An applicant will use their (or their parents) tax information from the previous year to complete the submission and help determine eligibility. Applicants need to be aware that the FAFSA form will become unavailable and disappear from the fafsa.gov website on June 30th.A huge benefit to applying as early as possible would be to give a student and his/her family more time to compare schools and awards to help determine the best fit. Some programs may also have limited funds, so applying early can give you the opportunity to have access to the most money available.Why is FAFSA Important?Regardless of your financial situation, everyone considering attending college should fill out the FAFSA. Grants are not only determined by tax information, but by family size and the age of your parents or guardians are taken into account as well. Remember also that when you fill out FAFSA, you are also applying for funds from your state, and possibly from your school as well. Some schools will not even consider a student for scholarships until he/she submits a FAFSA. It is important not to make assumptions about what you may get. Just fill out the application and find out!Federal Government Loan eligibility can also be determined through a student’s FAFSA submission. If you end up needing a loan to pay for college, FAFSA will allow you access to Federal Loans that often have lower interest rates and more borrower protections than private lenders can provide. You will not have access to these Federal loans if you do not complete FAFSA.The Office for Federal Student Aid provides overview video on FAFSA: Different type of Federal GrantsFederal Pell GrantFederal Pell Grants, the most common type of Grant awarded from the FAFSA, are usually awarded only to undergraduate students who have not yet earned their degree. A Federal Pell Grant, unlike a loan, does not have to be repaid (Although the recipient could be asked to repay should he/she withdraw from school). The amount of any other student aid for which a student may qualify for does not affect the amount of your Federal Pell Grant.The amounts of the Federal Pell Grants can change yearly. For 2017-18 award year (July 1, 2017 – June 30, 2018), the maximum Federal Pell Grant Award is $5,920. The amount you will get will depend on:
- an applicant’s financial need (typically determined by household income from pervious year)
- The cost of attendance at the school you have been accepted to
- The student’s status as full-time, or part-time student
- A students plan to attend school for a full academic year or less.
If it is determined that you are eligible for a Federal Pell Grant, you will receive the full amount you qualify for in one lump sum. This money is paid to each school by the U.S. Department of Education to pay the Federal Pell Grant amounts to all eligible students.Federal Supplemental Educational Opportunity GrantFSEOG is a type of grant that is awarded to undergraduate students who have exceptional financial need and who have not earned their bachelor’s or graduate degree. Federal Pell Grant recipients receive priority when awarding FSEOGs. Unfortunately, not all schools participate in the FSEOG program.The annual award for FSEOG can be up to $4,000, and is subject to availability of funds from the awarding school.Teacher Education Assistance or College or Higher Education (TEACH) GrantThis Grant is intended for undergraduates, or graduate students who are or will be taking course work necessary to become elementary or secondary school teachers. Grants amounts awarded can be for up to $3,736 per award year.There is a catch associated with this Grant. The recipient must agree to serve a minimum of four years (within eight years of completing one’s academic program) as a full time teacher in a high-need field that serves low-income students. Failure to complete the teaching service results in the amount of the grant awarded being converted into a Direct Unsubsidized Loan that must be repaid.Iraq and Afghanistan Service GrantThis Grant pertains to students whose parents or guardian was a member of the U.S. armed forces and died as a result of performing military service in Iraq or Afghanistan after the events of 9/11. Recipients of this grant must be ineligible for a Federal Pell Grant due to having less financial burden than is required to receive Federal Pell Grant Funds.
