The FAFSA: a New Year Means a New Application
Though it’s a day off from school and work, New Year’s Day is also a day to get
down to business. While you’re starting in on your New Year’s resolutions, opening
up a new calendar, and packing up the holiday decorations, there’s one more thing
that college students and college-bound
high school students should do each January. The Department of Education
starts accepting the Free Application for Federal Student Aid (more commonly known
as "FAFSA") on January
1 each year. State application deadlines fall soon after—as early as February in
some cases. So while you might not start classes until August or September, you
want to start applying for financial aid
as soon as the FAFSA is available each year.
What You Need
In order to complete a FAFSA, you will need the following:
- your social security number
- a driver’s license if you have one
- bank statements and records of investments (if you have any)
- records of untaxed income (again, if you have any)
- your most recent tax return and W2s (2008 for the 2009-2010 FAFSA)
- all of the above for your parents if you are considered a dependent (to determine
dependency status, check
here)
- a PIN to sign electronically (go to
pin.ed.gov to get one)
If you’ve applied before, you can fill out a renewal FAFSA, which will let you skip
a few questions. You will still need your tax, savings, and investment information
for the new year, though. You will always need tax information from the previous
calendar year to file; it’s the most accurate predictor of ability to pay college,
according to the Department of Education. If things changed drastically for your
family in the last year, apply for student financial
aid with the information you have, and then talk to your school’s financial
aid office to make any necessary adjustments.
If you do not have your tax information by the time you’re ready to apply, which
is often the case if you’re applying in January or February, use information you
have available, such as a previous year’s tax return, to estimate to the best of
your ability. That way, you have a FAFSA on file before priority deadlines have
passed. Once you’ve done your taxes for the current year, you’ll be able to submit
a correction online. While that might seem like more work, it’s the best recipe
for maximizing your state and campus-based
aid packages.
Why You Should Apply
Completing the FAFSA is an important
step in funding your education if you don’t
plan on paying for everything out-of-pocket. The FAFSA is used by the Department
of Education to determine eligibility for
federal student financial aid for college. This aid includes
federal grant programs (such as the Pell Grant),
federal work-study, and federal
student loans. It is also used by states to determine eligibility for their
college aid programs, such as state grants. Colleges also use the FAFSA to determine
eligibility for the need-based aid programs they administer. Finally, many
scholarship opportunities request FAFSA information as part of their application
process. Even if you think that you won’t qualify for free money in the form of
need-based college scholarships and grants,
you should still apply. At the minimum, the vast majority of students qualify for
Stafford Loans, low-interest federal
student loans that represent one of the best deals in borrowing for school.
Where To Get More Information
Visit fafsa.ed.gov
(the official FAFSA application website) and go through the links under “Before
Beginning a FAFSA” to get started, especially if this is your first time filing.
You’ll find information about application deadlines, required documents, applying
for a PIN, and other things you need to know about to begin. We offer many of the
same financial aid resources, including a
student guide to college aid at Scholarships.com. For further reading, check
out our Resources section.