FAFSA

Student loans in the U.S.
Regulatory framework
Higher Education Act of 1965
U.S. Dept. of Education
FAFSA · Cost of attendance
Distribution channels
Federal Direct Student Loan Program
Federal Family Education Loan Program
Loan products
Perkins · Stafford
PLUS · Consolidation Loans

Private student loan

The Free Application for Federal Student Aid (known as the FAFSA) is a form that can be prepared annually by current and prospective college students (undergraduate and graduate) in the United States to determine their eligibility for student financial aid (, as well as concerns that colleges could deny admission, waitlist applicants, or offer less financial aid as a result of such interpretations.[1][2][3][4] Advisers recommend alphabetical lists of colleges to obscure preferences.[2][4]

A Student Aid Report (SAR), which is a summary of the FAFSA responses, is forwarded to the student. It shows the Expected Family Contribution, based on the information on the FAFSA, and comments on which need-based aid the student is eligible for. The student should review the SAR carefully for errors and make any corrections. An electronic version of the SAR (called an ISIR) is made available to the colleges/universities the student selects on the FAFSA. The ISIR is also sent to state agencies that award need-based aid.

Some colleges also require the CSS Profile to be filled out as early as the same deadline as an early admissions or early decision application deadline, beginning October 1 of each year for the upcoming academic year. The CSS is a fee-based product of the College Board and usually concerns funds disbursed by a college rather than federal or state funds.

Eligibility

Nearly every student is eligible for some form of financial aid. Students who may not be eligible for need-based aid may still be eligible for an unsubsidized Stafford Loan regardless of income or circumstances.[5]

A student who can meet all of the following criteria may be eligible for aid:

Student Aid and Fiscal Responsibility Act (SAFRA) of 2010 changed the criteria for suspension of eligibility for drug-related offenses. Previously, students could lose eligibility for either the possession or sale of a controlled substance during the period of enrollment. SAFRA dropped the penalties for possession of a controlled substance but retained the penalties for sale of a controlled substance. SAFRA increases the suspension to two years for a first offense and indefinite for a second offense.

Students who are military veterans and active duty service members may apply for financial aid by filing a FAFSA even if they also apply for education and housing benefits offered by the Post-9/11 G.I. Bill and its accompanying Yellow Ribbon program. The amount of military aid a student receives for a college education does not defer eligibility or reduce the amount of student aid that student could receive from the four federal grant programs – Pell, SMART, FSEOG, and TEACH – and many of the state student aid programs.

Types of financial aid

Federal Student Aid offers several different types of financial aid. The four most common types of aid students are offered from the federal government as a result of completing a FAFSA are:

Preparation and Filing Options

By federal law, students have two options when preparing their annual, federal student aid application:[13] either prepare the form on the U.S. Department of Education's website or get assistance from a fee-based FAFSA preparation service. Most financial aid is providing on a first-come, first-served basis and students are encouraged to prepare a FAFSA on January 1 of every year because millions of students compete for the billions in need-based and merit aid.

On the U.S. Department of Education's website, students have three preparation options: [14]

The Higher Education Opportunity Act of 2008 authorized fee-based FAFSA preparation. (The options are much like those for taxpayers who may either prepare their own income tax forms or get assistance from professional, tax-preparation services or software.)[15] Fee-based preparation of the aid form had been allowed as early as 1995. HEOA formalized the option in 2008. The oldest FAFSA preparation and assistance firm is Student Financial Aid Services, Inc. of Sacramento, California, which operates the website,[16] and which also provides free FAFSA preparation through its national program Access for All(R)designed to assist low-income students.[17] Another, now defunct, which filled out the FAFSA and provided other financial aid services to parents, is Edifi.

By law, fee-based FAFSA preparation services must on initial contact with students inform them of the free option and be transparent about their non-affiliation with the U.S. Department of Education and their fees. Students should not engage with FAFSA preparation firms that are not transparent about FAFSA options and their fees upfront.

Many free FAFSA preparation resources exist.[18] Students are encouraged to bring questions to their schools' financial aid office or seek help from another resource at their high school such as a guidance counselor.[19] However, with the (2013) student to school counselor ratio being 457 to 1, students can learn more about the financial aid process at a large variety of websites, such as Edvisors [20] and The College Solution.[21]

See also

References

  1. ↑ Liz Weston, Reuters, November 11, 2013, Daily Finance, Colleges May Penalize Students Over Preference on Financial Aid Applications, Accessed Dec. 12, 2013, "... Students can list up to 10 schools to receive their financial aid information, and the ones they list first strongly predict which enrollment offers they're likely to accept, college consultants say...."
  2. ↑ 2.0 2.1 Ry Rivard, October 28, 2013, Inside Higher Ed, Using FAFSA Against Students, Accessed Dec. 12, 2013, "...Now, some colleges use this FAFSA position when considering students’ applications for admission, which may affect decisions about admission or placement on the wait list, said David Hawkins..."
  3. ↑ CBS News, Lynn O'Shaughnessy, October 30, 2013, Be careful what you share on the FAFSA, Accessed Dec. 12, 2013, "...The order, however, could also be hurting students who list their favorite school as No. 1. If a teenager shows too much interest in a school, the admission office may decide to offer the applicant a lower award because it is assumed that the child will enroll anyway...."
  4. ↑ 4.0 4.1 Rachel Fishman, October 28, 2013, Access to Higher Education, Higher Ed Watch, The Dark Side of Enrollment Management, Accessed Dec. 13, 2013, "...The FAFSA should either not allow institutions to see where students have applied or it should list the institutions in alphabetical order...."
  5. ↑ "Eligibility for Aid FAQ".
  6. ↑ FAFSA.ed.gov: Most male students must register with Selective Service to receive federal student aid
  7. ↑ FAFSA.ed.gov: Am I eligible for student aid?: If you are a male between the ages of 18 and 25, you must register or already be registered with Selective Service. If you are a citizen of the Federated States of Micronesia, the Republic of the Marshall Islands or the Republic of Palau you are exempt from registering.
  8. ↑ "Eligibility for Aid FAQ". Retrieved 2014-03-25.
  9. ↑ http://studentaid.ed.gov/eligibility/staying-eligible. Missing or empty |title= (help)
  10. ↑ "What types of aid are available?".
  11. ↑ http://studentaid.ed.gov/types/loans/subsidized-unsubsidized
  12. ↑ http://studentaid.ed.gov/types/loans/interest-rates
  13. ↑ "FAFSA Filing Options".
  14. ↑ "FAFSA Filing Options".
  15. ↑ Higher Education Act of 2008 PUBLIC LAW 110–315—AUG. 14, 2008 122 STAT. 3279-80
  16. ↑ http://www.fafsa.com
  17. ↑ http://www.fafsa.com/AccessforAll
  18. ↑ http://www.fafsa.com/understanding-fafsa/free-fafsa-assistance
  19. ↑ http://www.fastweb.com/financial-aid/articles/3179-are-there-any-fees-for-filing-the-fafsa
  20. ↑ http://www.edvisors.com/fafsa/secrets/
  21. ↑ http://www.thecollegesolution.com/need-fafsa-help-here-are-6-resources

External links