Don't be afraid of FAFSA
High school seniors have kept their grades in check, taken part in extracurricular activities, taken college entrance exams and have mailed off their applications to the schools where they want to continue their education.
Now they and their families have just one more hurdle to jump in the college application process: filing out the free application for federal student aid or FAFSA.
The FAFSA tells families what grants and/or loans they're eligible for from the federal government, and most colleges use the form as their only financial aid application to see how much money they can chip in. But financial aid experts urge students to call the colleges to where they're applying and ask if there are any other financial assistance forms they need to complete.
"FAFSA really is the centerpiece document in applying for financial aid," said David Pardieck, financial assistance director of Bradley University in Peoria, Ill.
Those looking for help paying for college should fill out the FAFSA as early as they can because financial aid is given on a rotating schedule, so it's first come, first serve, said Craig Powell, president and chief operating officer of ConnectEDU, a technology firm that navigates students through the college application process.
Families can begin filling out the FAFSA as early as Jan. 1 and usually have until May 1 in some states, according to the U.S. Department of Education.
It's also important that families file their income taxes as early as possible because that information will be needed to fill out the financial aid application. They can estimate how much money they expect to receive from the government and how much money they made the previous year and update their forms when they receive concrete numbers.
But Powell warns that filling out the FAFSA with incorrect information could cost students time and money. On average, about 43 percent of applicants fill out their forms incorrectly the first time and 15 percent make mistakes when they resubmit their applications. Each incorrect application could cost a student $1,000-$2,000 in aid per award cycle, Powell said.
And with more families expected to fill out the financial aid applications this year, money could be harder to come by, the experts said.
If families' financial situations change, they should contact the schools their children are applying to and let them know because those institutions can go back and make changes in financial assistance, what many universities call professional judgment, Pardieck said.
"I think we're going to see real spikes in professional judgment," he said, because of the sluggish economy and job losses over the past year.
But don't become discouraged by the several-page document, Pardieck said. Applicants should be optimistic in filling out the FAFSA because colleges can determine how much a family can or cannot contribute.
"Ironically, retirement investments, like the 401k, are not part of FAFSA. (This is) also true of home equity," he said. "There are a lot of urban myths out there."
The FAFSA does look at expected family contributions, which are parents' incomes and assets and students' incomes and assets.
"There is a host of factors ... absolutely worth the 20 to 25 minutes to complete," Pardieck said.
Jennifer L. Berghom covers education and general assignments for The Monitor. She can be reached at (956) 683-4462.
