New Year's Resolution - Get Started on the FAFSA

The New Year means FAFSA filing for college students

The beginning of the new year is a critical time for college bound students who are seeking  financial aid. Everyone agrees that the best kind of financial aid is gift aid – the kind you don’t pay back. This includes grants, merit awards, and scholarships. When students borrow money for college, federally subsidized loans are often a good choice since repayment and interest do not begin until the student leaves college. All of these options begin with filing the FAFSA; and the FAFSA filing period begins January 1st.

The FAFSA is an acronym for Free Application For Student Aid. This form is used to calculate the federal government’s idea of how much the family must pay toward education.

The formula is something like this: Cost of Education - Family Contribution = Need

The cost of the education is determined by many factors including tuition, fees, housing, books, supplies and even travel expenses. Based on the methodology of how need is determined by the feds, sometimes students actually pay less out of their own pockets if they attend a higher priced school. This is why it’s so important to file a FAFSA regardless of income, family size or any other factor.

The family is the parent or parents with whom the child lives. In shared custody, it’s the parent with whom the child lives the most. The family income of the parent must include the spouse’s income. The family size includes children and step-children in the home where the student lives. Unmarried parents, do not include non-related members in the household.

Need is demonstrated once the family contribution has been calculated by a formula called the Congressional Methodology. Families are expected to pay school costs equal to the family contribution. The demonstrated need becomes the basis for need based aid.

Don’t disqualify yourself! Regardless of your family’s financial success it is a good idea to file the FAFSA form.  FAFSA information is used for work study jobs, subsidized loans and sometimes even college merit awards (money given based on something other than financial need) begin with information on the FAFSA.

The federal government offers a variety of funding possibilities, and California students also have access to Cal Grants, offered by the State of California. Students apply for both federal and state money with the FAFSA. Cal Grants require a supplementary grade point verification form, which must be completed by the school registrar. Cal Grant filing periods are January 1 through March 2 of each year, so while the FAFSA can be submitted after the March 2 deadline, California kids should always submit the FAFSA and the Cal Grant g.p.a verification form prior to March 2nd.

The FAFSA is available January 1st each year on-line www.fafsa.ed.gov . Be certain you are on the official FAFSA website, since at the dawn of the internet years ago, some very clever entrepreneur purchased fafsa.com , where he files the FAFSA for you, (after you’ve filled it out) for $100! Always remember the first word in FAFSA is FREE!

To file a FAFSA takes about a half hour. You’ll need your 2011 income tax forms, your social security number, the names of the colleges where you gave applied, and a personal identification number for your electronic signature, which is issued on the FAFSA website. Parents who have more than one child in college, will file the same information for both children, but on different forms; and be sure it’s the same information!

Your children must also file FAFSAs individually. Students will need their 2011 income tax forms, their parents’ and their own social security numbers, and an electronic signature PIN number. Students and parents must file a FAFSA for each year of college.

After filing, students will receive a Student Aid Report which tells what kind of aid they qualify for. Following that, the schools where students have been accepted will send financial aid offers which include a list of different types of aid. Students can then compare which college is actually the best value as they decide where to attend.

So if you’re a college student, or parent of a college student add one more item to your New Year’s resolution list - Get started on the FAFSA.

www.fafsa.ed.gov            Filing period January 1 – March 2, 2012

Colleges are still accepting applications

 

If you are a senior and you didn’t apply to the UC or CSU by November 30^th, you can still go to a four year college next fall. There are a handful of CSUs that have extended deadlines and you can find them on the CSU Mentor website.

There is more good news. Most of the private colleges and hundreds of public out-of-state colleges are still accepting applications for Fall 2012. These include, but are not limited to: University of Nevada Reno, Arizona State, University of Arizona, Oregon State and University of Oregon, and many public colleges in Hawaii, Idaho, Montana and Washington.

So if you missed the UC or CSU deadline and still want to attend a four year college next year, get on the Google search engine to find your favorite four year school. Be sure you’re on the official website that ends in ".edu" to confirm you are applying at the official website. Complete the on-line application before the deadline. Follow that up by submitting official transcripts and test scores. Then open the portal account on the college website for further directions or requirements.