January 2008: Top 5 Things You Need To Know About the FAFSA

3 January 2008 68 views One Comment

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Happy New Year! From all of us at SLN, we wish you a safe, happy, and prosperous 2008, and we’re going to do our part this month with an in-depth review of the FAFSA process.

As always, if you have comments or questions, please visiting our Financial Aid Forums online. If you know someone who should be getting this newsletter but is not, please forward them a copy!

Christopher Penn, Editor
http://www.FinancialAidNews.com
http://www.StudentLoanNetwork.com

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Feature Editorial: Top 5 Things You Need To Know About the FAFSA

Suppose there were one form which could open all kinds of scholarships, grants and financial aid, and completing that form was both free and relatively straightforward? Suppose it only took an hour or so? Would you fill it out? Would you complete it and get your foot in the door?

There is such a form. It’s called the Free Application for Federal Student Aid, or FAFSA, and millions of college students each year ignore it at their financial peril. The FAFSA has been around for years, and in terms of financial aid, no one form controls more aid than the FAFSA. Filling out the FAFSA is relatively easy as long as you’ve done your taxes; approximately 80% of the FAFSA paperwork just pulls numbers off federal tax forms. There are two basic ways to file a FAFSA – by mail and online. Both are available from the Department of Education’s FAFSA website, www.FAFSA.ed.gov.

Here are some secrets, tips, and hints for filing the FAFSA. You can find a more comprehensive list at www.FAFSAonline.com.

Step 1: Gather your stuff. One of the reasons students don’t fill out the FAFSA is that they don’t have all the information handy. They say they’ll get to the form, but never do, and pass up free money. Before you begin, here’s a list of some key things to have on hand.

You’ll need the previous year’s paperwork, including your parents’ tax paperwork if you are a dependent student. If you plan to file a FAFSA for this calendar year, you’ll need relevant tax information from last year . For example, if you’re filing the 2008-2009 FAFSA, you’ll need tax information from 2007.

+ Your Social Security Number (can be found on Social Security card)
+ Your driver’s license or state ID (if any)
+ Your W-2 Forms and other records of money earned
+ Your Federal Income Tax Return (IRS form 1040, 1040A, or 1040EZ)
+ Federal Income Tax Return supplementary documentation
+ Your parents’ Federal Income Tax Return (if you are a dependent student)
+ Your untaxed income records – Social Security, Temporary Assistance to Needy Families, welfare, or veterans benefits records
+ Your current bank statements
+ Your current business and investment mortgage information, business and farm records, stock, bond, and other investment records
+ Your alien registration or permanent residence card (if you are not a U.S. citizen)

Step 2: Do your taxes first. One of the easiest ways to get through the FAFSA form is to do your federal income taxes first, as about 80% of your FAFSA data comes right off federal tax forms like the IRS 1040. Do your federal tax forms first, even if you don’t plan to file your income taxes right away. If you need help with federal tax forms, many small community banks and credit unions offer complimentary or low cost access to professional, certified financial planners and accountants who can advise you on your taxes and personal finances. Many fee-based preparation services also offer free federal tax return preparation if your annual income is below a certain amount, so shop around to see what help is available.

Step 3: Do a practice run. It’s not uncommon to feel a certain amount of apprehension when completing the FAFSA form, particularly if you’re filing online. To ensure the fewest errors possible and the least amount of stress, download a printable copy of the FAFSA form and do a “practice” round of the form. Understand and be comfortable that you’ll probably make a few errors as you fill out the practice form, and make several photocopies so that you can refine your answers. Having a printable form also makes it easier to take with you if you need to consult with your financial aid administrator about questions you have.

Step 4: File early. When should you file your FAFSA form? As early as possible after January 1st of each calendar year, keeping a careful eye on your state and school deadlines. Why? Because the FAFSA application controls access to student financial aid and grants, and the earlier your FAFSA gets processed, the more eligible you are for grants and scholarships which have a limited pool of money that is distributed on a first come, first served basis. File early.

Step 5: Get Help. If you have questions on the FAFSA, there’s plenty of help available. Ask your school’s financial aid administrator, visit www.FAFSAonline.com, or attend a College Goal Sunday (www.CollegeGoalSundayUSA.org) event for help in completing and filing the FAFSA.

Last Words: Selections from Student Loan Network Experts

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Scholarships

Have you registered for Scholarship Points, our free college scholarship awards site? Every month, we pick a lucky recipient for two hundred and fifty dollars; every quarter, we select a lucky recipient for $1,000. Visit: http://www.ScholarshipPoints.com

Here’s a selection of awards from StudentScholarshipSearch.com – visit the site to see all the new awards posted recently: http://www.StudentScholarshipSearch.com/new/

Keep in mind that you can get daily scholarship updates by listening to the Financial Aid Podcast (http://www.FinancialAidPodcast.com) and visiting the Student Scholarship Search website (http://www.StudentScholarshipSearch.com).

A Word from our Sponsors

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The Very Last Word

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