About the FAFSA

Free Application for Federal Student Aid

The FAFSA (Free Application for Federal Student Aid) is the no-cost application used by colleges and universities to determine eligibility for Federal Student Aid. The FAFSA is the first step in the financial aid process and is used to determine eligibiliy for different types of financial aid, including Pell Grants, student loans, and college work-study.

And although the FAFSA is the federal application for financial aid, it is also used to apply for student aid from other sources, such as the school or the state that the school resides in. State deadlines are often much earlier than Federal deadlines. Also keep in mind that applicants may also be required to complete additional forms for state student financial aid.

Information reported on the FAFSA is entered into a formula, which results in an Expected Family Contribution, or EFC. The EFC is a preliminary estimate that measures an applicant’s financial strength. The EFC is then subtracted from the cost of attending the school to determine an applicant’s eligibility for different types of federal student aid. Thus, schools use the EFC to prepare a total financial aid package (grants, loans, and/or work-study) on a case-by-case basis.

What Document You’ll Need to Get Started

- Social Security Number
- Driver’s license
- Income tax returns
- Bank statements
- Investment records

See Completing the FAFSA for information and instructions on how to complete the FAFSA. In addition, be sure to read Before Beginning a FAFSA for general student aid information, including frequently asked questions about the FAFSA and how it works.

Posted in Loans, Miscellaneous, Personal Finance, Student Loans

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