Nextstudent Article
What is FAFSA?
FAFSA is an acronym for Free Application for Federal Student Aid. It is perhaps the most important document students will complete in their educational years. It must be completed annually by both students and parents for various types of financial aid such as Federal, State or college sponsored. The aid can be in the form of scholarships, grants, educational loans and work programs. The form is complicated and on average takes between 1-2 hours to be completed by both students and parents.
Practically every citizen of USA is eligible for one or other financial aid and this can be directly as financial aid or as low interest rate Federal Student Loans or parent loans (PLUS).
The FAFSA application form is processed by Federal Contractors and the final outcome of the check is forwarded electronically to the student’s college administrators of financial aid. Any errors or too many blanks in the FAFSA application form not only result in delay but likely rejection. It is therefore imperative that you check everything is correct. If unsure get someone else to check it. It is better to enter a zero to a question rather than leave blank. There are companies that can help complete the form correctly and follow the processing for a fee. As FAFSA is such an important form, you must be absolutely certain there are no mistakes or unnecessary blanks before submission. It is worth it in the long run.
When filing for FAFSA in the year 2007/2008, you need these documents.
• Drivers License or other major ID.
• Your Federal Income Tax return form 1040, 104A, 1040EZ, 1040 telefile. If you are married, you will need your spouse’s Tax form as well.
• Social Security Number.
• If you are a dependent, your parent’s Federal Income Tax returns.
• Your W-2 forms or record of earned income.
• Record of untaxed income for 2006/2007.
• Your business record—mortgage, investments etc.
• Bank statements.
• If not a US citizen- alien or permanent residence card.
In the 2007/2008 FAFSA form, items related to students are in yellow and parents purple. Bear in mind that filling out the IRS 1040 for students will save you time and reduce errors. Savings is student’s name affect the level of aid offered. At the time of application, any savings in the student’s name will reduce the aid offered. Dependent students with jobs are exempt up to $2,440 earned. Any amount above this figure is assessed at 50%.
