FAFSA GUIDE: HOW DOES FAFSA WORK?

Your financial aid planning for college will be incomplete without the FAFSA form. Learn what it is, whether you qualify, and how it helps you receive funding for college.

WHAT IS FAFSA?

FAFSA stands for Free Application for Federal Student Aid. The application form opens each academic year on October 1 and is considered the most crucial step in financial aid planning for college.

The form is mandatory for requesting college funds administered by the federal government, state and academic institutions (colleges and universities), or other organizations. The federal government assesses your eligibility for different financial aid pathways. It also determines how much aid you may be granted according to the financial information you share in your FAFSA form.

Applicants need to renew their FAFSA form yearly, as long as they are in college, to receive financial aid through grants, work-study programs, scholarships, or federal student loans. Knowing how much money you can receive through FAFSA and what other options you may have to pay for college is beneficial.

THE PROCESS: HOW DOES FAFSA WORK?

FAFSA determines how much financial aid applicants receive based on current household income, available assets, and investments. It makes this decision for both need-based and merit-based college funds.

The application features questions pertaining to:

  • Personal Information

    Personally identifiable information includes full name, social security number, address, driver’s license of the applicant, and (legal guardians/parents) who might finance college tuition.

    In addition, applicants need to list college names they have applied to (or plan to study in) to help the FAFSA review board shortlist relevant financial aid plans.

  • Financial Information

    Before providing financial aid, the federal government (and other concerned organizations) need to know whether or not you can afford college tuition independently.

    Therefore, they shall ask for details about monthly/yearly income, savings, bank account details, federal tax information, tax rebates, and other financial data. Since this information may alter over time, you must resubmit your FAFSA form annually to receive the required college funds.

  • Legal parents’ information (for dependent students)

    Students that live with parents (or guardians) receive financial support through housing, groceries, and other essentials. The FAFSA asks questions about the applicant’s parents and financial status to calculate the Expected Family Contribution for college tuition.

    The Department of Education understands the need to acknowledge different family dynamics. That’s why it has set a specific guideline to determine the dependency of each candidate.

    Online FAFSA forms allow you to skip unrelated questions to streamline the process. It specifically helps candidates that might earn an independent income or do not have parental support for higher education.

It takes at least 3-5 business days to process FAFSA applications . After that, you may receive a Student Aid Report (or SAR). The report gives candidates an overview of how much money they can receive from financial aid and Expected Family Contribution.

TYPES OF FINANCIAL AID AWARDED VIA FAFSA

The federal government and private institutions use FAFSA to determine whether or not you qualify for their financial aid programs.

Upon approval, you may receive financial support through one of these options:

  • The Pell Grant
  • Grants, student loans, and scholarships issued by the state
  • Federal work-study programs
  • Federal Supplemental Educational Opportunity Grants (FSEOG)
  • Unsubsidized federal student loans that most applicants are eligible for despite financial situation and needs
  • Subsidized federal student loans adjusted according to individual financial needs
  • Financial aid, including scholarships and need-based grants provided through school funding

In addition, FAFSA applications are also for merit-based awards and scholarships distributed by schools and organizations. They use financial needs and academic performance or other notable achievements that showcase a student’s exemplary potential professional life to finalize their decision for the available scholarships/awards.

Are you interested in learning more?

Explore types of financial aid.

APPLYING FOR FAFSA

Applicants must create an official Federal Student Aid ID to apply for financial aid via the Free Application for Federal Student Aid. Your ID includes a unique username and password that grants you access to your financial aid and status for student loan repayment post-graduation.

Legal parents (or guardians) need to create separate FSA IDs if they are helping dependent students with their FAFSA and financial aid for college.

Here are some other things you need to know before you apply for FAFSA:

ELIGIBILITY

General requirements are as follows:

✔ You must either be a U.S citizen or an eligible non-citizen

✔ Have a high school diploma or General Educational Development certificate (GED)

✔ Enrolled in/or accepted by a credible college or vocational school that offers undergraduate/postgraduate degree (or certification)

✔ Maintain an acceptable grade point average and academic record during college

✔ Provide proof of financial need (for the need-based financial aid programs)

✔ Sign the certification statement on the FAFSA as assurance that you are not a defaulter (of previous student loans/grants) and you will use the financial aid for college/educational purposes only

You can seek guidance from the FAFSA help center (or representatives at College Funding of Tampa Bay) if you are unsure about your eligibility.

Pro-tip: You can check your eligibility for financial aid for college by reviewing this official checklist.

PREPARATION: WHAT DO YOU NEED TO COMPLETE YOUR FAFSA FORM?

It’s best to gather relevant documents and information before you sit down to apply for financial aid. The FAFSA questions require extensive details about your personal and financial situation, including information about your legal guardians.

Here’s what you should know:

  • Your valid Social Security Number (SSN) AND your parents’ SSN if you are a dependent student
  • Your alien registration number (for non-citizens)
  • Driver’s license number
  • Federal tax information or tax returns
  • Current records of untaxed income such as child support, non-education VA benefits for you and your family (including parents, spouses, and dependent students)
  • Financial status: Determined through current cash savings and checking account balances, investments (via real estate, stocks, bonds), and other valuable assets
  • A list of 4-10 colleges that you have applied to for your higher education

After collecting the necessary information to apply for financial aid, you may decide how you plan to fill out the FAFSA form. There are multiple options available depending on your convenience. You may visit the official site FAFSA.gov to submit electronically, or your college/career school might do this for you.

Alternatively, the federal government accepts mail-in applications.

Pro Tip: You can use the IRS Data Retrieval Tool (DRT) to automatically transfer your tax information from an official electronic record to your online FAFSA application.

MISTAKES TO AVOID WHEN YOU APPLY FOR FINANCIAL AID

  • Submit an incomplete form, i.e., unintentionally leave some questions unanswered or forget to attach relevant documents
  • Misspell information (including your name, address, college names, and other relevant details in your FAFSA answers)
  • Did not sign your FAFSA form
  • Miss the deadline
  • Shared falsified information or omitted necessary details to receive financial aid for college

THE DEADLINE: WHAT’S THE DEADLINE FOR SUBMITTING YOUR FAFSA?

The official federal deadline for FAFSA 2023-2024 is June 30, 2023. Note that some colleges and institutions may provide a different deadline to ensure candidates submit the form on time. We strongly advise applicants to complete the form as soon as possible to prevent any last-minute delays and mistakes.

You can submit a revised FAFSA form until September 10, 2023. Moreover, financial aid for college is granted on a first-come-serve basis.

That’s why an early submission can maximize your chances of receiving college funding.

WHAT HAPPENS AFTER APPLYING FOR FAFSA?

After submitting the official FAFSA form, you may need to fill out additional forms to verify specific details. Representatives at College Funding of Tampa Bay can assist you if required to check if you need to look at any other financial aid forms besides the FAFSA.

The federal government takes at least 3-5 days to process online forms and a week (or longer) to respond to mailed-in forms. After that, applicants receive a Student Aid Report (SAR) that gives an overview of the amount of financial aid they may potentially receive from their chosen college(s).

The amount varies depending on individual financial needs and the respective grants/scholarship guidelines of the academic institutions or vocational colleges you want to attend.

You will receive your financial aid award packages with your college acceptance letters. It lists your eligibility for grants, federal/private student loans, and available work-study programs.

At times, you may need to consult a financial aid office (or representative) to change your award options based on an alteration of your financial situation due to an unexpected event (i.e., financial loss, death of a guardian, other crises). You can reapply for financial aid by submitting an appeal explaining the situation and requesting that the board provide alternatives to your needs.

HAVE MORE QUESTIONS ABOUT FINANCIAL AID PLANNING FOR COLLEGE?

We can offer guidance on how to fill out your FAFSA form and ensure you qualify for financial aid.

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