What Is FAFSA and What Is It About?

The FAFSA is the starting point of almost every kind of student financial aid in the United States. Ever wonder who the largest provider of financial aid is? Well it’s the federal government.

Every year, it gives out more than $70 billion in grants, loans and work-study awards to millions of students. No matter who you are, you simply have to complete the FAFSA, which stands for the Free Application for Federal Student Aid.

You can find the FAFSA online, at high schools, at most libraries, or at a college financial aid office. It will list the deadline of June 30th, but your school’s deadline may be in early spring. You should get it in as soon as possible after January 1st.

You will need tax forms in order to fill out this form and if you or your parents have not completed them, you should estimate the information and make the corrections later. It is very important that you get the form in on time before the money is allocated.

Even if you’re applying to 12 schools, you need only complete one FAFSA. Always double check that your information is accurate and fill out the form completely. A failure to do so could lead to a costly delay in processing.

Make sure that you submit all required forms along with your application and any additional paperwork requested. It’s best to beat the deadline by as much time as possible. Certain types of aid are offered on a first-come, first-served basis.

Applying online is the fastest way to submit your form and get your results. You will need to request a PIN number from www.pin.ed.gov. Also, filing online can help you catch mistakes quickly and make corrections.

Other Need-To Know Facts About the FAFSA

If you are a male, be sure that you have registered for Selective Service. If you’re over the age of 18, male and have not registered for Selective Service, your FAFSA will be rejected.

Don’t lie on your FAFSA. The government randomly flags a certain percentage of FAFSAs for the school to verify. If they find out that you lied, you will not only lose your aid, but you can be charged with a federal crime.

If your parents are divorced, the parent you lived with the most in the last tax year is the one whose income you will include on the application. Whether your parents claim you as a dependent on their taxes has nothing to do with whether you’re considered a dependent in terms of the FAFSA.

You are considered a dependent and have to include your parents’ income on the FAFSA unless you meet a list of requirements such as you are over the age of 24, you are married, you are in grad school, you’re an honorably discharged veteran or ward of the court.

After You Submit Your Form

Once you have submitted your FAFSA, it goes to the Central Processing System (CPS). The CPS uses the Federal Methodology to calculate your results and create your Student Aid Report (SAR).

This is then sent to you, your schools, and your state aid office. Keep a copy for your records. Regardless of the school, certain aid will be available to you as long as you qualify, such as: Pell Grants, Direct Loans, and Federal Family Education Loans

Yes, you can use your student loans for anything you want related to college. Grants have to be used for tuition or for books, but loans can be used for anything. I used mine to pay off credit cards that I had used to pay for school for previous years.

I have been told many times that whatever is left over from a grant and/or a loan after it has been applied to your tuition is yours to spend as your desire. They have no way of knowing what you spend it on.

Student loans are to be used for cost of attendance, which can include off-campus housing and living expenses. However, your financial aid office at your school is the ultimate arbiter of what is legit, although most would agree that off-campus housing is on the up and up.

Now, I have heard of many not so legit things that student loan money gets used for. Sure, they cut you a check for the extra excess money and how can they really know? But be warned, that if they find out that you are doing something illegal with loan funds, you might find yourself with your loans “decertified” and unable to get more.

There are loans that are called “Direct Student Loans” These student loans can be found in almost all kinds of the media. Today there are plenty of these types of direct student loans, for school tuition, off- campus living, even direct student loans to buy your first car. Such is the host of many options that are more than willing to take your money. Remember that choosing one of these types of loans becomes a difficult task and necessary to research and to read and reread all of the fine print.

Student loans can be used for things such as an apartment, (off-campus), transportation needs, food, books, supplies, etc. if it is necessary to complete your education. Remember, your student loans are yours and they are also yours to be repaid. No matter what you choose to use them for they will not go away until they are repaid in full by you. They are loaned to you for your educational needs and can be around for a very long time if you do not use the loan or loans wisely.

Some students are going to school while raising children only on their student loans. However, on the opposite end they can be squandered and bring many regrets and sorrows, along with a lifetime of bad credit.

A friend of mine had taken out three loans for school and made small payments here and there when he could, often times forgetting about them altogether. He then started to receive many letters requesting payment, which he also ignored. Finally, to his surprise his entire check was garnished. He had not been attending college for the past six and had another two years to go before he completed his college education.