A friendlier FAFSA

Filling out the Free Application for Federal Student Aid (FAFSA) may not be as fun as your graduation weekend, but it may be just as important. In order to be eligible for any type of federal grant or loan, you must complete the FAFSA.

The purpose of the FAFSA is to help the U.S. Department of Education and Financial Aid Administrators determine your eligibility for financial aid. You can get a FAFSA application from your library, high school, the college you plan to attend or online at www.fafsa.ed.gov.

Here are a few tips to a faster, friendlier FAFSA. Don’t assume you won’t qualify for aid. When it comes to financial aid, it’s a good idea to keep all your options open and complete the FAFSA. Although you may think you don’t need or qualify for financial aid, you’ll never know what you’ll receive unless you apply. Student loans are an investment in you. In the case of a higher education, debt is not necessarily a bad word. Student loans, when handled responsibly, can help you establish credit.

Recent studies show that college graduates make $1 million more during their lifetime than a person with only a high school diploma. Now is the time to check out some of the lowest interest rates on federal student loans. It’s a smart choice to look into student loans rather than using high interest credit cards or some other form of financing to pay for your education expenses. There are convenient repayment options, such as deferring payments while in school, the low interest rates and possible tax benefits. FAFSA is a free application and offered online.

You do not need to pay anyone to complete the form. You may want to practice filling out the FAFSA to help you figure out what questions you know and what additional information you will need. If you run into questions or are unsure of any section, you can find a step-by-step guide to complete the application and answers to many of your questions on the U.S. Department of Education Web site at fafsa.ed.gov. Or, call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).

Make it easy on yourself. Completing the form online helps you make fewer mistakes, simplifies the application and provides faster processing. Plus, you’ll be able to get your results 7 to 14 days earlier. Start NOW, and know your deadlines. Federal, state and institutional aid (the money from your college) is generally distributed on a first-come, first-serve basis. The earlier you submit your information, the more likely you are to get a piece of the financial aid pie. In addition, many states have grant programs for students attending college in state and the deadlines for submitting the FAFSA and other required grant applications change on a state-by-state basis. Make sure that you are aware of the requirements and how they affect you.

Familiarize yourself with the terminology. From EFC (estimated family contribution) to subsidized and unsubsidized loans, understanding the financial aid language helps make the process less intimidating. You can find a guide to financial aid terminology at the Department of Education Web site. Keep a copy of your FAFSA. Keeping good records of all your financial aid material is critical. It will make it easier for you to complete additional financial aid forms required by your school. There is life after FAFSA. If you don’t get as much aid as you need to cover the cost of college, there are more options! Private loans or Consumer Education Loans are available from banks and dedicated education finance companies. These loans can be used to cover any education related costs not covered in your financial aid package, like books and living expenses.

This article was provided by Chela Financial, a not-for-profit education finance company that strives to put education within reach for students and their families. Use the EFC calculator at loans4students.com to get a good idea of the financial help you can expect!

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