The cost of college can be daunting. Tuition and fees vary from state to state, and the total price tag of a college education is much higher than in previous generations. While the cost of college is largely dependent on the choices made by an individual, in-state vs. out-of-state, public vs. private, and community college vs. university, financial aid can help cover higher education expenses. Since different types of financial aid can help lower the amount you are expected to pay out-of-pocket, understanding how to access the largest source of financial aid is a must.
What is the FAFSA?
The Free Application for Federal Student Aid (FAFSA) is available to help cover the cost of a college education. The FAFSA offers grants that are given, loans that are borrowed, and work-study funds that are earned. What’s more, the information from the FAFSA is also used by many states and schools to aid in the distribution of state and institutional funds. The U.S. Department of Education redesigned and simplified the FAFSA in preparation for the 2024-2025 award year, making it easier and faster for students and families to fill out the form online.
Since financial aid is limited and can run out, it is imperative that students and families meet the application deadlines. Keep in mind that federal deadlines may be different from deadlines imposed at the state level as well as deadlines set up by each college and career/trade school. It’s best to inquire directly with your schools of interest to confirm application deadlines.
Completing the FAFSA
The FAFSA typically opens in October of each school year. While students have until June 30 of the following year to apply, the sooner the form is completed, the better positioned you can be to meet state and school deadlines. The redesigned FAFSA form allows students to add up to 20 schools they are considering, regardless of whether an application has been sent or an acceptance letter has been received. The student will need to submit the FAFSA each year they are enrolled in higher education.
If you are new to the FAFSA process, it’s important to identify contributors to the FAFSA form. Contributors will be required to submit their information and give consent for the IRS to transfer tax information directly to the U.S. Department of Education. Standard information needed for each contributor includes full name, social security number, birthdate, and email address.
Preparing to pay for higher education
Once the FAFSA has been submitted, schools will use the information to determine the aid each student may be eligible to receive. The FAFSA will calculate and make available to each student, the Expected Family Contribution (EFC). This calculation is used by financial aid offices to determine student financial need. For schools that are unable to meet full financial need—the cost of attendance less EFC—students may need to seek other means, like scholarships, to fill the gap. Scholarships are widely available through college financial aid offices, high school counselors, and local business and community foundations. Alpine Bank also offers scholarships to local students in need.
Since the schools, and not the U.S. Department of Education, are responsible for disbursing any aid, it is good practice to ensure the schools on your list have all the information they need, and whether any additional documentation is required before they send out an aid offer. While it is possible to submit corrections on the FAFSA form for certain fields, significant changes in family and financial situation should be addressed with the financial aid office for which you are requesting acceptance.
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