The 2018-19 Free Application for Federal Student Aid, better know as the FAFSA, became available today.
If you’re in college now or starting college next year, filling out this form is the only way to get federal student aid. It’s also a great way to get additional money from your state and school.
More than $2.7 billion in federal aid money went unclaimed last year. Complete the FAFSA now to grab your piece of the pie.
What to know about the 2018-19 FAFSA changes
The FAFSA is used by the government and colleges to determine your eligibility for financial aid. (If you’d like to learn more about the basics, check out our ultimate FAFSA FAQ.)
The 2018-19 FAFSA, which came out today, is for anyone who will be in college between July 1, 2018, and June 30, 2019.
If you’ve filled out the FAFSA before, you might notice a few changes to the process.
It’s available earlier
You used to have to wait until January to fill out the FAFSA, but the form is now available on October 1, which means you have more time to compare aid packages and negotiate with financial aid offices.
It also means you need to get yourself into gear and apply. Keep reading to see why you shouldn’t wait.
You’ll use last year’s income
In previous years, you had to estimate your income. For this year’s FAFSA, you’ll use data from your 2016 tax return.
If your 2017 income is significantly different, the Department of Education suggested you should contact the schools you’re applying to and explain what changed.
You can’t see numbers submitted through the IRS tool
For the past several years, the IRS Data Retrieval Tool has allowed you to automatically import your income directly into the FAFSA.
Although you still can use the tool, security concerns mean you’ll no longer be able to see or edit the numbers you submit. Instead, you’ll see a note that says “transferred from the IRS” in applicable fields.
If you did your taxes correctly, it shouldn’t be a problem. But if you’d like to double-check which numbers were on your tax return, you can use this IRS tool to get a transcript.
3 steps for filling out your FAFSA
The FAFSA is the only way to get federal financial aid.
Even if you think your family’s income is too high, you should fill out the FAFSA. You might qualify for a merit grant or scholarship, and you’ll need it to obtain federal student loans.
Here’s how to get started.
1. Create a Federal Student Aid (FSA) ID
The student and parent each will need to create an FSA ID. After you create an ID, it might be three days before you can use it, so don’t wait.
2. Collect your documents
Then it’s time to gather everything you’ll need to fill out the FAFSA: W2s, bank statements, Social Security numbers, driver’s licenses, and 2016 tax returns.
3. Fill out the FAFSA
When you fill out the FAFSA, don’t panic if you aren’t sure which schools you’re applying to. Include up to 10 schools you’re considering; you can add or remove them later.
Why you should complete your FAFSA now
The technical deadline for filling out the 2018-19 FAFSA is June 2019, but you should fill out your FAFSA as soon as you can.
That’s because, although it won’t affect your federal grants, it likely will affect how much you receive from your state and college. If you fill out your form early, more money will be available — and you’ll have a better chance of snagging it.
Some states even award aid on a first-come, first-serve basis. Check your state’s FAFSA deadlines here. If you see “as soon as possible after October 1, 2017,” you need to hurry.
Then check the website of each college you’re applying to. If it lists a “priority deadline,” the Department of Education explained, you’ll need to “get your FAFSA form in by that date to be considered for the most money.”
Not convinced yet? Read this statement from financial aid expert Mark Kantrowitz, as told to Student Loan Hero: “Students who file the FAFSA within the first three months (October, November, and December) tend to receive more than twice as much grant funding, on average, as students who file the FAFSA later.”
Unlike student loans, grants don’t need to be paid back. So to secure your future, get your FAFSA in ASAP.
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|* 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.
1 Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.
2 Important Disclosures for College Ave.
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.
1Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
2This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a first year graduate student borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.10% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $141.66 while in the repayment period, for a total amount of payments of $16,699.21. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 5/18/2020. Variable interest rates may increase after consummation. Lowest advertised rates require selection of full principal and interest payments with the shortest available loan term.
3 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 applicant’s ability to supply the necessary information for submission.
4 Important Disclosures for Discover.
Lowest APRs shown are available for the most creditworthy applicants.
5 Important Disclosures for CommonBond.
Offered terms are subject to change and state law restrictions. Loans are offered through CommonBond Lending, LLC (NMLS #1175900).
6 Important Disclosures for Citizens.
Undergraduate Rate Disclosure: Variable interest rates range from 3.54%- 6.40% (3.54% – 6.40% APR). Fixed interest rates range from 3.79% – 6.65% (3.79% – 6.65% APR).
Graduate Rate Disclosure: Variable interest rates range from 2.72% – 6.11% (2.72% – 6.11% APR). Fixed interest rates range from 3.49% – 6.36% (3.49%-6.36% APR).
Business/Law Rate Disclosure: Variable interest rates range from 1.47% – 8.35% (1.47% – 8.20% APR). Fixed interest rates range from 4.45% – 10.74% (4.45% – 10.59% APR).
Medical/Dental Rate Disclosure: Variable interest rates range from 1.47% – 7.25% (1.47% – 7.10% APR). Fixed interest rates range from 4.40% – 9.64% (4.40% – 9.49% APR).
Parent Loan Rate Disclosure: Variable interest rates range from 3.09%-6.23% (3.09%-6.23% APR). Fixed interest rates range from 5.48%-8.52% (5.48%-8.52% APR).
Bar Study Rate Disclosure: Variable interest rates range from 4.79% – 9.93% (4.79% – 9.85% APR). Fixed interest rates range from 7.39% – 12.94% (7.39% – 12.82% APR).
Medical Residency Rate Disclosure: Variable interest rates range from 3.88% – 7.38% (3.88% – 7.04% APR). Fixed interest rates range from 6.99% – 10.49% (6.97% – 10.08% APR).
Variable Rate Disclosure: Variable Rates are based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of May 1, 2020, the one-month LIBOR rate is 0.44%. Variable interest rates will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable rate is the greater of 21.00% or Prime Rate plus 9.00%.
Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer.
Lowest Rate Disclosure: Lowest rates require a 5-year repayment term, immediate repayment, a graduate degree (where applicable), and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer. Borrowers should carefully review federal benefits, especially if they work in public service, are in the military, are considering possible loan forgiveness options, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision on our website including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.
Eligibility Criteria: Applicants must be a U.S. citizen, permanent resident, or eligible non-citizen with a creditworthy U.S. citizen or permanent resident co-signer. For applicants who have not attained the age of majority in their state of residence, a co-signer is required. Citizens Bank reserves the right to modify eligibility criteria at any time. Citizens Bank private student loans are subject to credit qualification, completion of a loan application/Promissory Note, verification of application information, and if applicable, self-certification form, school certification of the loan amount, and student’s enrollment at a Citizens Bank participating school.
Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
|2.00% – 10.01%*,1||Undergraduate and Graduate|
|1.49% – 11.98%2||Undergraduate, Graduate, and Parents|
|3.18% – 13.92%3||Undergraduate and Graduate|
|1.49% – 11.99%4||Undergraduate and Graduate|
|3.52% – 9.50%5||Undergraduate and Graduate|
|3.54% – 6.40%6||Undergraduate and Graduate|