What You Should Know About FAFSA – Tutorial

High school students, students in college, and students from different learning backgrounds can all fill out the Free Application for Federal Student Aid (FAFSA). Eligibility standards differ, and applicants should follow U.S. Department of Education rules. During the 2020-21 application cycle, around 17.8 million FAFSAs were submitted, as data from Federal Student Aid indicated.

Federal funds for elementary and secondary education programs in the United States in 2021 by government department

Completing the FAFSA, which becomes accessible on October 1st, is vital for students and their families if they want to afford college. FAFSA completion is a prerequisite for high school graduates in some states.

The U.S. Department of Education awarded over $112 billion in federal aid, loans, and work-study funding in fiscal year 2021, assisting approximately 10.1 million students. 

What Do You Need to Know About FAFSA?

A financial aid application must be submitted to be considered for FAFSA. The first step is getting acquainted with the Free Application for Federal Student Aid (FAFSA). Here are the most crucial FAFSA facts, including modifications implemented by the FAFSA Simplification Act.

File FAFSA regardless of eligibility

A frequent misconception is that high-income families should save time filling out the FAFSA; some find the form intimidatingly complex. However, filling out the FAFSA brings up opportunities for federally protected students in the form of direct student loans and other types of financial help such as scholarships, bursaries, work-study, or supplementary loans. It is crucial to note that specific scholarships, especially those not based on financial need, may still need the FAFSA.

Details about students and parents 

Students who are unmarried and younger than 24 must typically fill out the FAFSA with details regarding themselves and their parents. This contains details about the student’s income and assets, as well as their parents’ financial standing and assets. It is crucial to remember that the term “parent” in FAFSA only refers to legally recognized parents (biological, adoptive, or stepparents). Other people living with you are not considered parents unless they have formally adopted you.

FAFSA does not reveal the amount

The data you provide on your FAFSA is used for calculating your Expected Family Contribution (EFC), which colleges and universities use in assessing your eligibility for financial aid. The EFC is a guideline, not a fixed amount to be paid. Your EFC, as documented in the Student Aid Report (SAR), will be sent to you one to three weeks after you file your FAFSA.

File it online

To access the FAFSA form online, go to the Federal Student Aid website. It can be completed on a computer or mobile device, or print out a downloadable PDF version and submit it on paper. You must submit your and your parent’s income tax returns two years before your intended college enrollment date to complete the FAFSA. For example, if you intend to start college in the fall of 2024, you will require tax data from 2022.

 The FAFSA has a data retrieval feature that integrates your tax information directly from the IRS website into your FAFSA application.

You can make some minimal changes

The majority of the information on the FAFSA cannot be changed or altered after you submit it since it must match your situation on the filing date. Changes in your savings, for example, cannot be updated after submission. 

You cannot immediately modify the FAFSA form if your family’s circumstances change, such as a parent or guardian losing a job or receiving unemployment assistance. 

However, please clarify the change to the financial aid office of each college you selected on your FAFSA. The college might ask for a letter detailing the changes and supporting documentation.

The Nitty Gritty of Filling Out the FAFSA Form

Gather all relevant information and papers before filling out the Free Application for Federal Student Aid (FAFSA) form to ensure a smooth and thorough submission process. Having certain items ready can help speed up the application process and ensure you have all the required data.

First, start by compiling your personal information, such as your Social Security number, date of birth, and full legal name, as it appears on official papers like your Social Security card or driver’s license. Register a Federal Student Aid (FSA) I.D. for yourself as well as your parent(s) or guardian(s), if applicable. This ID will act as your digital signature and enable you to access federal student aid websites.

Consider your dependency status next. Specify whether you are a dependent or independent student. Dependency students must submit their parents’ data on the FAFSA, but independent students may do so under particular circumstances.

Prepare your tax returns for the appropriate tax year. Collect IRS Forms 1040, 1040A, or 1040EZ for the tax year that coincides with the year of your FAFSA application. To simplify this procedure, you can use the IRS Data Retrieval Tool (DRT) in the FAFSA to submit your tax information right to the application.

Gather information about your assets, such as savings accounts, investments, and property (but not your home or retirement funds). 

These particulars will be utilized for assessing your financial status. Make a list of colleges that you want to attend. You can send your FAFSA to up to ten colleges, and they will have access to the financial data they need to establish your assistance eligibility.

Non-citizens with legal status in the United States must submit their Alien Registration Number. Check to see if universities or state aid programs require additional documentation, such as verification or specific financial aid forms.

Wrapping Up!

FAFSA is that tool that can help you carve your path to higher education in a prestigious college of your choice. Like that stepping stone to success, it gives you that extra pump to fly high and accomplish all your career goals and dreams. I hope you find this blog post helpful while filling out your FAFSA form.

Refer to it if you feel stuck while filling out your FAFSA form. 

Moonpreneur is on a mission to educate and ignite the flames of entrepreneurship through our holistically created online STEM programs, which will help kids master the futuristic sciences such as Robotics, Game Development, App Development, Advanced Math, and much more!! 

Register for a free 60-minute robotics and Coding workshop today!