Before you can get any financial aid from the federal government, you have to submit the Free Application for Federal Student Aid (FAFSA). Since financial aid is awarded on a first-come, first-served basis, filing early can boost your chances for a better aid package.
The U.S. Department of Education reviews the information on your FAFSA to determine your eligibility for federal student aid programs. Most states and colleges also rely on FAFSA data to award millions of dollars in aid from nonfederal programs.
The fastest way to file your FAFSA is online at www.fafsa.ed.gov. As you fill out your FAFSA online, the system saves your information so you can work on it over several days. Your answers are checked automatically, reducing the chance for delays caused by errors. If you cannot file online, get a paper FAFSA from your high school counselor, any college financial aid office, or the FAFSA website.
After you've submitted your FAFSA, your Student Aid Report (SAR) arrives in the mail (within four weeks, sooner if you file online). Your SAR is also available on the FAFSA website. Your report is then sent to the colleges you listed on your FAFSA application.
The SAR itemizes the federal financial assistance you are eligible for and your expected family contribution (EFC): the amount your family is expected to pay for one year of college.
Each college that accepts you prepares a financial aid package (sent as an award letter) that may be composed of federal, state, and direct aid from the school.
To establish a student's financial need, all schools follow a basic formula: a school's official cost of attendance (COA) minus the EFC equals your financial need.
When your SAR arrives, you will likely find Stafford Loans—the most common student loans—on the list. Stafford Loans are low-interest, federal loans for students that—when accepted through Nellie Mae—offer you money-saving benefits.
Stafford Loans have annual borrowing limits, so there will probably be a cost gap. That's where Nellie Mae's ParentPLUS Loan and private Signature Student Loan can help you and your parents close college funding shortfalls.
Need help completing the FAFSA? Talk to your guidance counselor, visit the excellent FAFSA website, or call the Federal Student Aid Information Center at (800) 433-3243.
Don't delay filing your FAFSA if your and your family's taxes aren't ready. The FAFSA lets you estimate those numbers then update your application online. Better yet, why not file your taxes early to support your FAFSA application?
Learn more about financial aid from the experts at Nellie Mae. You can also download useful brochures and worksheets.