Free Application for Federal Student Aid
Encyclopedia
The Free Application for Federal Student Aid (known as the FAFSA) is a form that can be prepared annually by current and prospective college
students (undergraduate and graduate) in the United States
to determine their eligibility for student financial aid (including the Pell Grant
, Federal student loans
and Federal Work-Study
).
Despite its name, the application is the gateway to be considered for the nine federal student aid programs and the 605 state and most of the institutional aid available. The U.S. Department of Education begins accepting the application beginning January 1 of each year for the upcoming academic year. Each application period is 18 months; most federal, state, and institutional aid is provided on a first come, first served basis. Students are advised to submit a FAFSA as early as possible for consideration for maximum financial assistance.
Applicants who have completed a FAFSA in previous years may submit a renewal FAFSA. Any information that has changed must be updated annually.
The FAFSA consists of numerous questions (at least 130 for the 2010–2011 academic year) regarding a student's (and their family's) assets, income, and dependency. 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.
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 to the colleges/universities the student selects on the FAFSA. The ISIR is also sent to state agencies that award need-based aid.
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 a fee-based product of the College Board
and usually concerns funds disbursed by a college rather than federal funds.
regardless of income or circumstances.
A student who can meet the following criteria may be eligible for aid:
Student Aid and Fiscal Responsibility Act
(SAFRA) changes the criteria for suspension of eligibility for drug-related offenses. Previously, students could lose eligibility for either the possession or sale of a controlled substance during the period of enrollment. SAFRA drops the penalties for possession of a controlled substance but retains the penalties for sale of a controlled substance. SAFRA increases the suspension to two years for a first offense and indefinite for a second offense.
Students who are military veterans and active duty service members may apply for financial aid by filing a FAFSA even if they also apply for education and housing benefits offered by the Post-9/11 G.I. Bill
and its accompanying Yellow Ribbon program. The amount of military aid a student receives for a college education does not defer eligibility or reduce the amount of student aid that student could receive from the four federal grant programs – Pell, SMART, ACG, and TEACH – and many of the state student aid programs.
College
A college is an educational institution or a constituent part of an educational institution. Usage varies in English-speaking nations...
students (undergraduate and graduate) in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
to determine their eligibility for student financial aid (including the Pell Grant
Pell Grant
A Pell Grant is money the federal government provides for students who need it to pay for college. Federal Pell Grants are limited to students with financial need, who have not earned their first bachelor's degree or who are not enrolled in certain post-baccalaureate programs, through participating...
, Federal student loans
Federal Direct Student Loan Program
The William D. Ford Federal Direct Loan Program provides "low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education .....
and Federal Work-Study
Federal Work-Study Program
The Federal Work Study program is a federally-funded program in the United States that assists students with the costs of post-secondary education. The Federal Work Study Program helps students earn financial funding through a part-time work program...
).
Despite its name, the application is the gateway to be considered for the nine federal student aid programs and the 605 state and most of the institutional aid available. The U.S. Department of Education begins accepting the application beginning January 1 of each year for the upcoming academic year. Each application period is 18 months; most federal, state, and institutional aid is provided on a first come, first served basis. Students are advised to submit a FAFSA as early as possible for consideration for maximum financial assistance.
Applicants who have completed a FAFSA in previous years may submit a renewal FAFSA. Any information that has changed must be updated annually.
The FAFSA consists of numerous questions (at least 130 for the 2010–2011 academic year) regarding a student's (and their family's) assets, income, and dependency. These are entered into a formula that determines the Expected Family Contribution
Expected Family Contribution
Expected Family Contribution is a term used in the college financial aid process in the United States. It is an estimate of the parents' and/or student's ability to contribute to post-secondary education expenses. Generally speaking, the lower the EFC the higher the financial aid award from the...
(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)
401(k)
A 401 is a type of retirement savings account in the United States, which takes its name from subsection of the Internal Revenue Code . A contributor can begin to withdraw funds after reaching the age of 59 1/2 years...
funds). This information is required because of the expectation that parents will contribute to their child's education, whether that is true or not.
The FAFSA does not have questions related to student or family race, ethnicity, sexual orientation, disability, or religion
Religion
Religion is a collection of cultural systems, belief systems, and worldviews that establishes symbols that relate humanity to spirituality and, sometimes, to moral values. Many religions have narratives, symbols, traditions and sacred histories that are intended to give meaning to life or to...
.
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 to the colleges/universities the student selects on the FAFSA. The ISIR is also sent to state agencies that award need-based aid.
Some colleges also require the CSS Profile
CSS Profile
The CSS/Financial Aid PROFILE , short for the College Scholarship Service Profile, is an application distributed by the College Board in the United States allowing college students to apply for financial aid. It is primarily designed to give private member institutions of the College Board a closer...
to be filled out as early as the same deadline as an early admissions or early decision application deadline. The CSS is a fee-based product of the College Board
College Board
The College Board is a membership association in the United States that was formed in 1900 as the College Entrance Examination Board . It is composed of more than 5,900 schools, colleges, universities and other educational organizations. It sells standardized tests used by academically oriented...
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 who may not be eligible for need-based aid may still be eligible for an unsubsidized Stafford LoanStafford loan
A Stafford Loan is a student loan offered to eligible students enrolled in accredited American institutions of higher education to help finance their education...
regardless of income or circumstances.
A student who 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 ServiceSelective Service SystemThe Selective Service System is a means by which the United States government maintains information on those potentially subject to military conscription. Most male U.S. citizens and male immigrant non-citizens between the ages of 18 and 25 are required by law to have registered within 30 days of...
(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.
Student Aid and Fiscal Responsibility Act
Student Aid and Fiscal Responsibility Act
The Student Aid and Fiscal Responsibility Act of 2009 is a bill introduced in the U.S. House of Representatives of the 111th United States Congress by Congressman George Miller that would expand federal Pell Grants to a maximum of $5,500 in 2010 and tie increases in Pell Grant maximum values to...
(SAFRA) changes the criteria for suspension of eligibility for drug-related offenses. Previously, students could lose eligibility for either the possession or sale of a controlled substance during the period of enrollment. SAFRA drops the penalties for possession of a controlled substance but retains the penalties for sale of a controlled substance. SAFRA increases the suspension to two years for a first offense and indefinite for a second offense.
Students who are military veterans and active duty service members may apply for financial aid by filing a FAFSA even if they also apply for education and housing benefits offered by the Post-9/11 G.I. Bill
Post-9/11 Veterans Educational Assistance Act of 2008
The Post-9/11 Veterans Educational Assistance Act of 2008 is Title V of the Supplemental Appropriations Act of 2008, , , an Act of Congress which became law on June 30, 2008. The act amended Part III of Title 38, United States Code to include a new Chapter 33, which expands the educational benefits...
and its accompanying Yellow Ribbon program. The amount of military aid a student receives for a college education does not defer eligibility or reduce the amount of student aid that student could receive from the four federal grant programs – Pell, SMART, ACG, and TEACH – and many of the state student aid programs.
Types of financial aid
FAFSA has several different types of financial aid. The four most common types of aid:- Pell GrantPell GrantA Pell Grant is money the federal government provides for students who need it to pay for college. Federal Pell Grants are limited to students with financial need, who have not earned their first bachelor's degree or who are not enrolled in certain post-baccalaureate programs, through participating...
– A grant of up to $5,550 for students with low EFCs. - Stafford LoanStafford loanA Stafford Loan is a student loan offered to eligible students enrolled in accredited American institutions of higher education to help finance their education...
s – A loan with interest set at 6.8%. If subsidized, the interest is paid by the government while the student is enrolled at least half time. If unsubsidized, the interest accumulates onto the outstanding balance. - Perkins Loans – A loan that is like the Stafford but is lent directly by schools that are Title IVTitle IVTitle IV of the Higher Education Act of 1965 covers the administration of the United States federal student financial aid programs....
-eligible. - The Federal Work-Study ProgramFederal Work-Study ProgramThe Federal Work Study program is a federally-funded program in the United States that assists students with the costs of post-secondary education. The Federal Work Study Program helps students earn financial funding through a part-time work program...
– A program where students can get part-time work, up to a certain amount, and have 75% of their wages reimbursed by the federal government.