FAFSA - Federal Student Aid

What is FAFSA?

Just like its name implies, the Free Application for Federal Student Aid, or FAFSA, is a free application for federal student aid from the US government. Anyone that is a US citizen is allowed to apply for a FAFSA loan, and the application process is free! You can apply online through the federal government, or get hard copies of the application at your learning institution. It is faster and easier to apply online, however. Deadlines are typically July 6 for FAFSA applications, so don’t delay!

What are the Benefits of FAFSA?

The cost of education at a private college or university was $15,000 per year five years ago. Now, it has risen to $21,235 a year, an increase of 40 percent. At the same time, the average American household income rose by just four percent during the same period. FAFSA is a government funded program to help qualified American students afford the rising costs of college.

Federal student financial aid is the most feasible way to abbreviate the gap in the cost of education. The first step is to fill out the FAFSA or Free Application for Federal Student Aid. In addition to the federal government, the state governments, schools and other financial institutions will also use the information from FAFSA to ascertain your eligibility for non-federal student aid programs.

The 102 questions in FAFSA are framed to retrieve your academic, personal, financial and identification information. After meticulous scrutinizing of your FAFSA, the federal government will send you a Student Aid Report (SAR). The SAR contains EFC (Expected Family Contribution) that is calculated on the basis of facts that you had divulged through the FAFSA. The federal government and other funding agencies use EFC to determine your eligibility for various kinds student financial assistance programs. So, unless you fill out and submit FAFSA, federal as well as non-federal financial aids could remain inaccessible.

The benefits of FAFSA are numerous. Aside from the fact that you will be getting money for college, you will also have lower interest rates, longer payment options, and it is available to nearly all college students. Plus, you can apply online, and get an answer quickly.