Everything You Need to Know About the FAFSA

The FAFSA, or the Federal Application for Federal Student Aid, opens soon on October 1.  If you aren’t too familiar with the process or what the FAFSA is all about, I’ve compiled some key takeaways below.

You Can Start Before It Opens

You’ll need a FSA ID which is how you’ll confirm your identity throughout the process.  It might take some time before you can use it after you create it, so don’t hesitate to get started!  Both dependent students and parents will need their own unique FSA ID. You can learn more about the FSA ID here.

File Early

It pays to file the FAFSA early!  It opens on October 1 each year and the earlier you submit, the better.  Some FAFSA money is limited so it is first come, first served. Your funding could be completely different if you submit in May versus October.  Here’s where you can file.

Everyone Should File!

You might think your family earns too much to qualify for anything, but each year is different.  The FAFSA is used for all kinds of aid, and it’s worth filling it out just in case.

Know What Information You Need

Students need:

  • Their Social Security number

  • Driver’s license number (or state ID)

  • Bank and investment statements

  • Tax information

  • Untaxed income documents

  • Schools interested in attending

Parents need:

  • Tax information

  • Untaxed income documents

  • Bank statements

  • Investment information

  • Net worth

Know What to Report

When it comes time to list your assets, understand what should be reported and what should be left out.  Retirement accounts, home equity, life insurance policies, and personal assets are not meant to be reported on the FAFSA.

Prior Prior Wha?

The FAFSA uses your tax information from the prior prior year.  This means it will utilize the information from your tax returns from two years ago.  If you are completing the FAFSA for the 2020-2021 academic year, you will use your 2018 tax return.  If your financial situation in 2018 was drastically different than it is now, you can explain the changes with documentation to the schools you’re applying to.  You can work directly with each school as you narrow down your choices.

Once You’re Done…

After completing the FAFSA, the student will get a Student Aid Report via email or snail mail which includes all of the responses the student filled in and the federal EFC (estimated family contribution).  This is the form summary, so be sure to review it for any errors you need to correct.

Issues With the FAFSA?

If you have questions about the FAFSA and can’t find the answer from your counselor or consultant or online, you can contact the Federal Student Aid Information Center (FSAIC), which is part of the Department of Education.  You can call 800-433-3243, use their web chat feature on their website, or communicate via Twitter and Facebook.

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The FAFSA seems scary, but it’s fairly straightforward especially if you have your documents all ready to go ahead of time.  Don’t be afraid to ask questions - you got this!