It's October! Depending on your preference, you can call it Autumn, Halloween season, or ... FAFSA season?!
Yes, the FAFSA application period typically opens on October 1. FAFSA is the Free Application for Federal Student Aid, and it's a critical step in the college journey.
The FAFSA is a short application from the U.S. Dept. of Education that helps students (and their parents) secure grants, loans, work-study (campus jobs) and other financial aid for higher education. It's free to fill out the application and can really help with the cost of college.
In addition to federal student financial aid, some states and colleges use the information from your FAFSA to figure out if you are eligible for state aid and additional help from the college. Some private loan providers also use this information to determine whether you can get a private education loan.
You'll need to submit the application every year, and to do that, you'll need your tax returns and some other financial documentation. Here are a few dos and don'ts to help you maximize the aid you're eligible for:
Don't wait to file! Student aid is often on a first-come, first-served basis, so getting your application in early can be really important. Pay attention to your state and college deadlines and make sure you file as soon as you possibly can.
Do provide the following information:
- Your bank balances (checking/savings) for all regular bank accounts
- Investments that do NOT include retirement funds (like your 401K, TSP, IRA or pension)
- Balances from parent-owned 529 plans (but not grandparent-owned plans)
- Real estate that is not your primary home
- Child support received/paid
- Student earnings and bank account balances
Do choose the right parent. If a child's parents are divorced, the FAFSA will ask for the information for the parent who provided more financial support in the year you are applying. This may not be the parent who has primary custody, and it may not be the parent who is claiming the child on taxes. Choose wisely.
Do file even if you think you won't qualify. If you think your income is too high for student aid, file anyway! You may be surprised at what you are offered, and sometimes the FAFSA is required for merit-based scholarships, too.
Do plan to appeal if necessary. College costs are actually negotiable! The offer you get for financial aid from a college may not be their best or final offer. If you don't like what a school is offering your student in terms of loans, grants, scholarships and work-study, you can ask them for a better deal! Be prepared to advocate for your student!
Do seek additional sources of funding. The FAFSA is not the end of your search for student aid. Lots of local and national organizations offer scholarships, and your student should look for these independent scholarships to apply for, too. Every $1,000 they get in scholarship money is $1,000 you don't have to pay for tuition and books.
Did you know that CommonWealth One offers educational scholarships? Our student loans may be less expensive than those from other financial institutions, so after you file your FAFSA, come talk to us about additional options. CommonWealth One also offers a variety of scholarships to student members, so keep an eye out for information about those in the coming months.
We'll be cheering you (and your student) on this fall as you navigate the college application process, and as you progress through the college adventure. We're here to help, so don't hesitate to reach out with questions by visiting a branch, calling or sending us a message through online banking.