Guidance: College Planning/ - Financial Aid

FAFSA: Step by Step

Free Application for Federal Student Aid

February 18, 2008

What is it? FAFSA stands for Free Application for Federal Student Aid. The federal government uses this form to determine your eligibility for financial aid, which includes: grants, work-study, scholarships and loans.

Why fill it out? The FAFSA is used to determine how much aid you are eligible for. Think of it this way: FAFSA - EFC - Financial Need - Financial Aid

EFC stand for Expected Family Contribution. Your family must contribute this amount in the coming year to your college costs, according to the government's calculation.

How does it work? Your prospective college will try to meet your financial need through aid made up of funds from federal, state, school and private sources. This may include loans, grants, scholarships and student employment.

FAFSA Process: 5 Step Process

The five steps to apply for federal aid:

Step 1: Request a Personal Identification Number (PIN) for you and for a parent at www.pin.ed.gov.
The PIN is your signature for the electronic FAFSA and is used to track your financial aid application. Keep reading for more information on your PIN.

Step 2: File your taxes early.
The FAFSA requires current tax information so complete your taxes early.

Step 3: Assemble forms needed for complete FAFSA
You'll need the following to fill out the form:

- 2007 student & parent (if dependent) federal tax return, Schedule K-1 (Form 1065)
- 2007 W2 forms and other records of money earned
- Student's driver's license (if any)
- Social security numbers
- Birth dates
- Date parents were married, separated, divorced or widowed
- Current cash, savings, and checking account balances
- Current investment values (stocks, bonds, mutual funds, CDs, etc) excluding retirement accounts
- Alien registration card (if not a U.S. citizen) - Check www.fafsa.ed.gov for more information on eligibility)
- 2007 untaxed income records such as veteran's benefits, housing/food/living allowances for military and clergy
- Value of business or investment-farm
- 2007 Child Support (paid and/or received)
- 2007 ADC/TANF welfare benefits
- 2007 Social Security payments received from SSI or SSDI
- 2007 Workers' compensation

Step 4: Complete the FAFSA
- Complete FAFSA on the Web: www.fafsa.ed.gov
- In order to maximize your amount of aid, fill out the FAFSA as soon as possible after January 1st.
- Once finished, print the FAFSA summary as well as the "Submission Confirmation" page (or write down your confirmation number and date). If completing the paper version, make a copy for your records.

Step 5: Review your Student Aid Report (SAR)
The SAR is proof that your FAFSA was received. You should received your electronic SAR in 1-3 days if your signed with your PIN (paper: 2-3 weeks).

What if I find errors on my SAR?
-Report errors immediately to your financial aid office. You can also make corrections online at: www.fafsa.ed.gov
- If you don't receive your SAR in 3-4 weeks, call 1-800-433-3243 (1-800-4-FED-AID).

PIN: Your Key to Online Identification
The Personal Identification Number (PIN) is the code that the U.S. Department of Education uses to identify you online. A PIN allows you to do the following on a FAFSA:
- Check the status
- Make corrections
- Fill out an online renewal form next year
- Electronically sign to speed up the process.

To obtain a PIN, eligible students and parents can visit www.pin.ed.gov (students and parents should each receive their own PINs). Click on "Apply for PIN" near the top of the page. Allow four hours for PIN instructions to be sent via e-mail.

Do not reveal your PIN to anyone. The PIN allows anyone to electronically sign federal student aid documents and access your confidential information. To change, cancel or retrieve a duplicate PIN, visit: www.pin.ed.gov

FAFSA TIPS
- Fill out the FAFSA as soon as possible after January 1st, and each successive year once you are in college. Early submission maximizes chances of receiving aid.
- Fill out a "FAFSA on the Web" worksheet: Click "Before Beginning a FAFSA," then "Print a Pre-Application Worksheet." Use the print-out as a guide before committing answers online.
-DO NOT enter online answers directly from the paper FAFSA! FAFSA on the Web and paper FAFSA questions are in a different order!
- Sign the application: If you are filing as a dependent, make sure your parents sign too. You can use your PIN if signing electronically.
- Save your FAFSA online if you can't finish it in one session: Click the "Save" button at the bottom of each step to save info for 45 days.
-Don't leave a field blank. If a question doesn't apply enter "0:.
-Make or print a copy of your FAFSA for your records.

Remember that the FAFSA is FREE! If you need help, ask your financial aid office or call the FAFSA Help Desk at: 1-800-4-FED-AID.

Seniors: What happens after you submit the FAFSA?

By now, you have probably submitted your Free Application for Federal Student Aid (FAFSA). Here’s what happens next.

Expect your SAR and Award Letter

You’ll receive a Student Aid Report (SAR) after you submit the FAFSA. This acknowledges that your form was processed and can be used to make corrections to your FAFSA. You’ll need the PIN you used to file the FAFSA to make electronic corrections.

The colleges you listed on the FAFSA will send you a financial aid award letter detailing the assistance they’re offering. They may offer a combination of scholarships, grants, work-study and student loans.

Compare Award Letters

Compare award letters from the colleges. Some may offer more in scholarships and grants, while others rely on student loans. Calculate your out-of-pocket expenses for each school to get the whole financial picture. Use our Award Letter Comparison Calculator to determine which school offers the best deal. Sign and return the award letters.

Keep looking for scholarships!

Many local, state and national scholarships have deadlines in March, April and May. Talk to your guidance counselor about scholarships that meet your criteria. For local and state scholarships, visit ScholarshipQuest at www.educationquest.org