| Student loans in the U.S. |
| Regulatory framework |
|---|
| Higher Education Act of 1965 US Dept of Education FAFSA Cost of attendance |
| Distribution channels |
| Federal Direct Student Loan Program FFELP |
| Loan products |
| Perkins · Stafford PLUS · Consolidation Loans |
The Free Application for Federal Student Aid (known as the FAFSA) is a form that can be filled out annually by current and anticipating college students (both undergraduate and graduate) in the United States to determine their eligibility for federal student financial aid (including Pell grants, Stafford loans, PLUS loans, and work-study programs).[1] The Department of Education begins accepting the application beginning Jan. 1 of each year. Applicants who have filled out a FAFSA in previous years are able to fill out a renewal FAFSA, but information on taxes and savings, for example, must be updated annually. [2] In addition, most states and schools use information from the FAFSA to award non-federal aid.
The FAFSA consists of numerous questions regarding the student's finances, as well as those of his or her family (in the case that a student is determined to be "dependent"); these are entered into a formula that determines the Expected Family Contribution (EFC). A number of factors are used in determining the EFC including the household size, income, number of students from household in college, and assets (not including retirement and 401(k) funds). This information is required because of the expectation that parents will contribute to their child's education, whether that is true or not.[3]
The FAFSA does not have questions related to student or family race, ethnicity, sexual orientation, disability, or religion.
A Student Aid Report (SAR), which is a summary of the FAFSA responses, is forwarded to the student. The student should review the SAR carefully for errors and make any corrections. An electronic version of the SAR (called an ISIR) is made available for downloading by the colleges/universities the student selected on the FAFSA. The ISIR is also sent to state agencies that award state need-based aid. Schools may award aid on a first-come, first-served basis, and students are advised to fill out the FAFSA as early as possible for consideration for maximum financial assistance.
Some colleges also require the CSS Profile to be filled out as early as the same deadline as an early admissions or early decision application deadline. The CSS is managed by the College Board and usually concerns funds disbursed by a college rather than federal funds.
Eligibility
Nearly every student is eligible for some form of financial aid. Students that may not be eligible for need-based aid may still be eligible for an unsubsidized Stafford Loan regardless of income or circumstances. A student that can meet the following criteria may be eligible for aid:
- is a U.S. citizen, a U.S. national, or an eligible non-citizen;
- has a valid Social Security number;
- has a high school diploma or GED or for adult students, pass an Ability-to-Benefit test;
- is registered with the U.S. Selective Service (male students age 18-25);
- completes a FAFSA promising to use any federal aid for education purposes;
- does not owe refunds on any federal student grants;
- is not in default on any student loans; and
- has not been found guilty of the sale or possession of illegal drugs while federal aid was being received.
References
- ^ "FAFSA Application at LoveToKnow College". http://college.lovetoknow.com/FAFSA_Application. Retrieved 2008-03-29.
- ^ "The FAFSA: a New Year Means a New Application at Scholarships.com". http://www.scholarships.com/FAFSA-new-year-means-new-application.aspx. Retrieved 2009-09-23.
- ^ "FAFSA Application at LoveToKnow College". http://college.lovetoknow.com/FAFSA_Application. Retrieved 2008-03-29.
External links
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