What is the FAFSA?
The FAFSA stands for Free Application for Federal Student Aid. It is the application you fill out to qualify for the federal student financial aid programs. Many states as well as many colleges and universities also use the FAFSA to determine financial aid awards. You can submit the FAFSA online at fafsa.gov or through a paper application. In fact, this is now accessible on mobile devices like smartphones and tablets.
Once you submit your FAFSA, a US Department of Education applies a formula to the information submitted to calculate the Expected Family Contribution (EFC). The EFC is an amount that the student and the student’s family is expected to pay towards the cost of education.
How is the FAFSA used in determining financial aid awards?
When can I file the FAFSA?
The FAFSA application window typically opens the October 1st prior to the planned school year. However, for the 2024-2025 school year, the FAFSA initial filing date is January 1, 2024 due to FAFSA updates.
The deadline to submit the FAFSA is June 30th of the year following the planned school year. For the 2024-2025 school year, the deadline to file the FAFSA would be June 30, 2025.
However, several states and colleges have their own deadlines for financial aid, so it is important to confirm the dates with each institution. Since each college or university awards financial aid packages on a first-come first-served basis, you should consider applying as early as possible.
What are the deadlines for completing the FAFSA?
What information do I need to complete the FAFSA?
First, each student and at least one parent for dependent students must create a user ID (FSA ID) through fsaid.ed.gov. The FAFSA then requires general demographic and financial information from the student as well as from the parents of dependent students.
Demographic information includes identifying items like full name, date of birth, and Social Security number. For parents these items also include things like marital status, whether a parent is divorced, remarried, widowed, etc. You will also include up to 10 colleges to receive your FAFSA information.
Financial information includes taxed income as documented on your income tax returns, untaxed income from sources such as disability benefits, workers compensation, etc., and assets above certain thresholds.
How many years of tax returns do I need for the FAFSA?
The FAFSA will ask for tax information from two years prior to the application’s school year. For example, when filling out the FAFSA for the 2024-2025 school year, you will use tax information from the 2023 tax year.
No, the FAFSA does not count ALL assets the student or parents may own. The calculation for the Expected Family Contributions includes certain assets and excludes others.
It generally includes:
Money in checking, savings, and cash
Investment securities (e.g. stocks bonds, mutual funds CDs, 529 College Savings Plans, UTMA/UGMA accounts which you are the owner
Rental properties
Business Assets
The FAFSA does not include:
Your home
Your vehicle
Retirement plans (e.g. 401(k), 403(b), pension, annuities, non-education IRAs)
UTMA/UGMA accounts which you are the owner
Does the FAFSA count all assets I own?
You can edit information on the FAFSA (other than your Social Security number) after filing. In fact, you are required to update the FAFSA if certain changes occur such as the student’s status as a dependent, the number of family members in the household, or the number of family members in college.
However, if circumstances change that could significantly impact your household finances, you should contact the financial aid office at each college or university directly.They will review these changes and may require additional information or documentation.
What if my income or other circumstances have changed after I have filed my FAFSA?
Yes, you will need to apply for each new school year in order to be eligible for student financial aid. However, after you complete the FAFSA the first time much of your information will already be there when you file a renewal application in subsequent years.
Just make sure your information is still correct and up to date!
Do I have to file the FAFSA each year?
Absolutely, Yes!
There are so many factors taken into consideration when calculating a financial aid award that having a higher income or a certain amount of assets may not disqualify you from receiving some type of aid.In addition, many colleges, universities, and even other organizations use the FAFSA information for awarding their own scholarships and grants.And, if your financial circumstances change unexpectedly during a school year, you may be able to work with the school’s financial aid office to modify your financial aid package.However, you would not qualify for federal student aid if you didn’t complete the FAFSA.
Should I fill out the FAFSA if I think I won’t qualify for financial aid?
Where can I learn more about college planning and financial aid?
Need help navigating the Financial Aid process? Check out our recent webinar.
You can also find information from the Federal Department of Education website at studentaid.gov
Have a question or not sure where to start? Reach out us! We’re happy to be a resource for you
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