Starting senior year in high school can feel like you’re juggling a hundred things at once. Besides your classes and activities, you’ve got to study for the SAT and apply to college.
On top of everything, you also have to figure out how to pay for college. Fortunately, there’s one application that opens the door to federal financial aid.
This application is known as the FAFSA, and you can fill it out for free online starting Oct. 1 each year.
As long as you stay on top of the FAFSA due date — and fulfill all the necessary requirements — you’ll be well on your way to scoring financial aid.
If you’re not sure how to pay for college, check out these four ways the FAFSA can help.
1. The FAFSA grants access to federal, state, and school-based financial aid
The FAFSA can help you pay for college, but what is the FAFSA, exactly?
Well, imagine that all the money you need to pay for college is sitting behind a locked door. To unlock it, you’ll need the Free Application for Federal Student Aid, or FAFSA.
You can fill it out for free on the Federal Student Aid website. This straightforward application asks for personal information, along with data on your parents’ income, tax status, and assets.
You’ll also need to meet a few basic FAFSA requirements, such as:
- Be a U.S. citizen or eligible noncitizen
- Be on track for your high school diploma (or have already graduated with it)
- Be accepted at an eligible Title IV school (if you’re a high school senior, you’ll find out if you got accepted a few months after submitting the FAFSA)
- Maintain satisfactory academic progress (if your GPA falls too low in college, you’ll lose your eligibility for federal student aid)
The Office of Federal Student Aid looks at the FAFSA to determine how much your family can pay for college. Then, each college that accepts you uses the FAFSA to put together your financial aid award.
Every college has a different budget, so your financial aid package will look different from one school to another. At one school, you might get loads of grants and scholarships (i.e., free money), while another might only offer student loans you’ll have to pay back.
The majority of this aid will come from the federal government, but some might come from your state or even the college itself. Note that some colleges require an additional form, known as the CSS Profile, before doling out their own grants or loans.
Although all this behind-the-scenes work of putting together your financial aid packages is complicated, you and your parents only have to worry about one main thing: filling out and submitting the FAFSA.
2. The FAFSA reveals your Expected Family Contribution (EFC)
Although your financial aid offers might vary from school to school, one point will stay the same: your Expected Family Contribution, or EFC. Your EFC is the amount your family is expected to pay toward college.
The Office of Federal Student Aid looks at the information you provide on the FAFSA to calculate your EFC. If your family has a high income, your EFC might also be high. If your family’s income is on the lower side, your EFC could also be low.
Colleges look at your EFC to determine your eligibility for financial aid. For example, let’s say a college costs $32,000 per year, and your annual EFC is $20,000. In this case, you would have a $12,000 gap in funding.
Some colleges, such as Bowdoin and Brown, generously fill in this gap with grants and scholarships. Others will offer you a mix of grants and loans. Schools with a smaller budget might not be able to fill in the entire gap with federal financial aid.
If that’s the case, you’ll have to take extra steps as you figure out how to pay for college. You could apply for a private student loan for extra funding, or you might choose a different school with lower tuition costs.
Note that you should fill out the FAFSA even if your family has a high income, since not all aid is based on financial need. Plus, you’ll need a completed FAFSA on file in case your family’s financial situation changes in the future.
Even if you don’t think you’ll qualify for financial aid, it’s a good idea to submit the FAFSA every year you’ll be attending college.
3. Some scholarship organizations also consider your FAFSA
Colleges aren’t the only institutions that look at your FAFSA before granting you financial aid. Some private scholarship organizations are also interested in your EFC.
Scholarship organizations like the Davis-Putter Scholarship Fund and The Bonner Scholar Program select students who, along with meeting other requirements, demonstrate financial need.
Each scholarship organization sets its own criteria for awards. Some look for outstanding students or star athletes. Others seek students who volunteer in their communities or show impressive artistic ability. Some are fairly random and celebrate students who are left-handed or have red hair.
People on these scholarship committees probably care more about your transcript or personal essay than your financial situation. But committees that look for students with financial need will pay attention to your FAFSA. So if you’re applying to need-based scholarships, make sure to submit the FAFSA on time.
4. The FAFSA can get you more money if your financial situation changes
The FAFSA helps you get financial aid before the school year starts, but what if your financial situation changes halfway through?
Whether you get a new sibling or a parent loses their income, you can edit the FAFSA to reflect your new circumstances. In fact, you’re expected to do so if something major changes in your household.
To make changes to your FAFSA, follow these steps:
- Log into your account on FAFSA.gov
- Navigate to the “My FAFSA” page
- Click on “Make FAFSA Corrections”
You should also get in touch with your school’s financial aid office to alert them of the changes.
If you find yourself needing more support during the year than when you started, the FAFSA can help you gain more financial aid.
How to pay for college by submitting the FAFSA
To gain access to most forms of financial aid, you need to fill out the FAFSA. Submit it every year as close to Oct. 1 as possible to maximize your chances for aid.
Once you’ve submitted the form, you’ll have to wait to get your financial aid award letters. In the meantime, seek out scholarship opportunities for extra funding. To get started, check out these scholarship search engines.
Need a student loan?Here are our top student loan lenders of 2019!
|1 Important Disclosures for Ascent.
Before taking out private student loans, you should explore and compare all financial aid alternatives, including grants, scholarships, and federal student loans and consider your future monthly payments and income. Applying with a cosigner may improve your chance of getting approved and could help you qualify for a lower interest rate. Ascent Student Loans may be funded by Richland State Bank (RSB). Ascent Student Loan products are subject to credit qualification, completion of a loan application, verification of application information and certification of loan amount by a participating school. Loan products may not be available in certain jurisdictions, and certain restrictions, limitations; and terms and conditions may apply. Ascent is a federally registered trademark of Turnstile Capital Management (TCM) and may be used by RSB under limited license. Richland State Bank is a federally registered service mark of Richland State Bank.
* Application times vary depending on the applicants ability to supply the necessary information for submission.
2 Important Disclosures for CollegeAve.
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
Information advertised valid as of 2/1/2019. Variable interest rates may increase after consummation.
3 Important Disclosures for Discover.
* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.
4 = Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.
5 Important Disclosures for SunTrust.
Before applying for a private student loan, SunTrust recommends comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. To view and compare the available features of SunTrust private student loans, visit https://www.suntrust.com/loans/student-loans/private.
Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue this loan program without notice. Availability of all loan programs is subject to approval under the SunTrust credit policy and other criteria and may not be available in certain jurisdictions.
SunTrust Bank, Member FDIC. ©2019 SunTrust Banks, Inc. SUNTRUST, the SunTrust logo and Custom Choice Loan are trademarks of SunTrust Banks, Inc. All rights reserved.
6 Important Disclosures for LendKey.
Additional terms and conditions apply. For more details see LendKey
7 Important Disclosures for CommonBond.
A government loan is made according to rules set by the U.S. Department of Education. Government loans have fixed interest rates, meaning that the interest rate on a government loan will never go up or down.
Government loans also permit borrowers in financial trouble to use certain options, such as income-based repayment, which may help some borrowers. Depending on the type of loan that you have, the government may discharge your loan if you die or become permanently disabled.
Depending on what type of government loan that you have, you may be eligible for loan forgiveness in exchange for performing certain types of public service. If you are an active-duty service member and you obtained your government loan before you were called to active duty, you are entitled to interest rate and repayment benefits for your loan.
A private student loan is not a government loan and is not regulated by the Department of Education. A private student loan is instead regulated like other consumer loans under both state and federal law and by the terms of the promissory note with your lender.
If your private student loan has a fixed interest rate, then that rate will never go up or down. If your private student loan has a variable interest rate, then that rate will vary depending on an index rate disclosed in your application. If the interest rate on the new private student loan is less than the interest rate on your government loans, your payments will be less if you refinance.
If you don’t pay a private student loan as agreed, the lender can refer your loan to a collection agency or sue you for the unpaid amount.
Remember also that like government loans, most private loans cannot be discharged if you file bankruptcy unless you can demonstrate that repayment of the loan would cause you an undue hardship. In most bankruptcy courts, proving undue hardship is very difficult for most borrowers.
8 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|4.26% – 13.26%1||Undergraduate and Graduate|
|4.20% – 11.44%2||Undergraduate, Graduate, and Parents|
|4.84% – 13.49%3||Undergraduate and Graduate|
|4.62% – 11.47%*,4||Undergraduate and Graduate|
|4.38% – 13.38%5||Undergraduate and Graduate|
|5.85% – 6.99%6||Undergraduate and Graduate|
|3.95% – 9.81%7||Undergraduate, Graduate, and Parents|
|4.47% – 12.34%8||Undergraduate, Graduate, and Parents|