Have a student starting senior year of high school? Then you probably know about the daily emails they get from colleges encouraging them to apply. This is certainly an exciting time, but often a stressful one too!
One of the most important applications you need to help them submit is the Free Application for Federal Student Aid (FAFSA®). It’s the first step to figuring out what federal financial aid you may be qualified to receive, and many states and colleges use the information to offer their own financial aid packages. So it’s worthwhile to file the FAFSA even if you don’t expect to receive federal assistance since you may be offered a generous package by a state or college based on your FAFSA submission.
Changes to the FASFA Process
In addition to an overhauled online form and the electronic IRS Data Retrieval Tool (DRT) to access income information, the government made changes to make the process easier and more helpful for those planning to attend college.
- For the 2020–21 Academic Year FAFSA, the application opened October 2019 and the form can be submitted through June 30, 2021. Some states and programs have a limited amount of aid that is available on a first-come, first-served basis, so apply early.
- Income and tax information is based on earlier tax year. Now you submit the FAFSA using income and tax information from what is called ‘prior prior’ year’s income. For example, on the 2020-21 FAFSA, you will submit 2018 income and tax information. To avoid making mistakes, you can use the electronic DRT to access your income information.
Here are tips to help you file the form on the https://fafsa.gov/ website:
Create a FSA ID.
Your FSA ID is used to sign legally binding documents electronically and you must have one to log into your FAFSA account. This ID is a username and password and both the student and parent of a dependent student must have their own FSA ID. You can create an FSA ID at any time, but if you don’t have one when you fill out the FAFSA, you will be prompted to get one.
Gather your paperwork before you start the FAFSA.
The FAFSA is easy to complete if you have the right information readily available. Here’s a list of what the student and parents will need:
- The FSA ID
- Social security numbers
- Driver’s license numbers
- Tax records
- Records of untaxed income
- Records of your assets – savings, checking, stocks, bonds, real estate
Pay attention to student vs. parent information.
The FAFSA asks for parent information first and then student information. Be sure to enter the correct information for each person. If you accidentally put a parent’s salary under the student’s name, you will severely limit your financial aid. Note that on the FAFSA, the words “you” and “your” always refer to the student, not the parents.
List the colleges that should receive your FAFSA results.
You must list at least one college or career school to receive your FAFSA results. The order of the list does not matter for federal aid, but some states do require a particular order to be considered for state aid. Up to 10 schools can be listed on the online form, but more schools can be added later.
Sign the FAFSA form!
You must sign the FAFSA electronically using your FSA ID, and this must be done before your FAFSA can be processed. Once signed, you will get a confirmation page and also one will be emailed to you if you have provided an email address. Save or print both of these pages for your records.
Finally, the Federal Student Aid website is an informative and reliable source to learn about the FAFSA and ways to finance a higher education.
Lakeland Bank provides more information about personal banking and financial planning on our website. Our Customer Service Team can be reached at 866-224-1379.