What Is FAFSA? Everything You Need to Know in 2022
One of the biggest concerns for students planning their higher education is the financial burden college creates. That’s why financial aid programs like FAFSA are so important for students. But, what is FAFSA, exactly?
The phrase stands for the ‘Free Application for Federal Student Aid’ and refers to a process which helps determine a student’s eligibility for receiving financial support.
How Does the FAFSA Work?
The Department of Education’s Office of Federal Student Aid delivers the money to help pay for your schooling. Here’s how you can access those funds:
You must fill out the FAFSA form along with your college code before you start college. Once you submit your FAFSA form within the federal deadline, you’ll receive a detailed student aid report (SAR) containing the list of federal student loans and Federal Pell Grant that you can receive. Colleges use the FAFSA data to determine a student’s federal aid eligibility. Consult the colleges’ financial aid offices you’re interested in to know the total amount you’ll receivepare the cost and aid offers, and select the best offer. After accepting an offer, the federal student aid department will send the money directly to your college. Your college financial aid office will deduct this amount and send you the remaining balance to spend on college costs. Once you graduate, you can start repaying the loan. Graduate students have a six-month grace period before they start repaying their loans.
Please note that you must fill out the FAFSA form every year and maintain satisfactory academic progress to receive federal financial aid.
To help you filter through all the information available online, we’ve put together a guide to answer the most common questions about FAFSA. If you’re curious about what FAFSA is and how it can help you, read on!
Free Application for Federal Student Aid (FAFSA) Details
As a parent, you worry about paying for your child’s college education, irrespective of your financial situation, how much you earn, or how much you have saved up over the years.
Almost all universities and colleges have an in-house FAFSA department to determine students’ eligibility and how much aid they are likely to receive. This serves as the reference point for your aid package and expected family contribution.
The federal student aid asks you about your financial information, tax returns, and other essential things to determine your financial aid eligibility.
The Main Purpose of FAFSA & Eligibility
Once you submit your application form, the federal student aid office sends you a detailed report of the funds you’re eligible to receive. These funds are in need-based aid, loans, and scholarships. The federal student aid department directly transfers the amount to your college.
FAFSA is an initiative by The Department of Education to assist students in paying for their Remember, FAFSA isn’t necessarily a loan. Depending on your financial needs, the student aid department can give your grants, loans, and scholarships. Loans are of two types-direct unsubsidized loans and subsidized or ‘low-interest loans.’
Who is eligible? Every U.S. citizen with a social security number can apply for FAFSA subject to meeting the education requirement. Every applicant must have their high-school diploma/GED and submit their enrollment/acceptance letter in an eligible degree/certificate program.
Who Should Fill Out the FAFSA?
If you plan on going to college in the next academic year, it’s time to start filling out the FAFSA. As mentioned above, getting federal student aid is a great way to organize your finances and prepare to pay for your college education.
You can use the FAFSA to apply https://badcreditloanshelp.net/payday-loans-az/ for federal grants, work-study programs, and loans. Colleges in most states also use your FAFSA information to award non-federal aid.
