FAFSA is the Free Application for Federal Student Aid and is the basis for determining eligibility for many forms of financial assistance. The FAFSA must 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. The Department of Education accepts the application beginning January 1 of each year. Renewal FAFSA's are completed by those who have filled out a FAFSA in previous years. You must complete a FAFSA to be eligible for Federal Aid - Pell grants, Stafford loans, PLUS loans, and work-study programs. 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 if the student is a "dependent." The financial information is used to determine the Expected Family Contribution or EFC. Many factors are used in determining the EFC including income, household size, number of students from household in college, and assets (excluding retirement and 401k's). Family information is required because there is an expectation that parents will contribute to their child's education.
Your submission is summarized in the Student Aid Report or SAR, a copy of which is sent to the student for review before submission. 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 so fill out the FAFSA as early as possible to maximize your opportunity for financial assistance.
You can find more information about completing the FAFSA and deadlines at http://www.fafsa.ed.gov/index.htm
College graduates earn an average of $1 million more during their careers than high school graduates!
Source: U.S. Census Bureau