3 FAFSA secrets to help you get the most financial aid

Summary

In this video, Jocelyn Pearson shares three essential strategies for maximizing financial aid through FAFSA. She emphasizes the importance of applying early, even if you think you won't qualify, to ensure access to federal and institutional funds. She also explains that FAFSA should be submitted every year, as family financial situations can change, and doing so annually can open opportunities for more aid or appeals. Following these steps can significantly reduce college costs and improve loan terms, helping families move toward a debt-free degree.

Takeaways

• 😀 Apply early: Submit FAFSA as soon as it opens on October 1st to avoid missing deadlines and increase your chances of getting financial aid.
• 😀 Check school deadlines: Different universities and states have different FAFSA deadlines. Always verify them to avoid missing out on aid.
• 😀 Avoid procrastination: Waiting until spring could result in missing out on available funds, as some money is awarded on a first-come, first-served basis.
• 😀 FAFSA is essential: Even if you think you won’t qualify for aid, always submit FAFSA. Many universities require it for institutional funding, including scholarships.
• 😀 Income doesn't disqualify you: High-income families can still receive federal loans, which often offer better terms than private loans.
• 😀 Financial situation can change: FAFSA is filed annually, allowing families to update their information in case of significant life changes, such as a loss of income.
• 😀 Submit annually: Don't assume FAFSA only needs to be filled out once—submit it every year while your student is in college.
• 😀 Opportunity for appeals: Every year you submit FAFSA gives you an opportunity to appeal for more financial aid if your situation changes.
• 😀 Financial aid package adjustments: If FAFSA indicates you can afford more than you actually can, you may be able to provide proof to adjust your aid package.
• 😀 Look out for gap scholarships: Some universities offer scholarships to cover the gap between what FAFSA determines you can afford and your actual bill.
• 😀 Watch deadlines and opportunities for appeals: Make sure you check both submission deadlines and any appeal opportunities each year to maximize your financial aid.

Q & A

What is FAFSA, and why is it important for college funding?

FAFSA (Free Application for Federal Student Aid) is a form used by federal and state governments, as well as universities, to assess a family's financial situation and determine the amount of financial aid a student may qualify for. It is essential because many universities will not offer any financial aid without it, and it can help reduce the amount a family has to borrow or pay out-of-pocket for college.

When should families submit their FAFSA application?

Families should submit their FAFSA as soon as possible after it opens on October 1st of the student's senior year in high school. While it's not necessary to submit it exactly on October 1st, submitting it early, ideally within the first few weeks of October, ensures access to available financial aid and prevents missing critical deadlines.

Why is it recommended to submit FAFSA early?

Submitting FAFSA early increases the chances of receiving aid because some state and institutional funds are awarded on a first-come, first-served basis. It also helps meet various deadlines set by different universities and states, some of which may be earlier than the federal tax filing deadline.

Can submitting FAFSA later affect the financial aid received?

Yes, submitting FAFSA later can result in missing out on available funds, as many states and universities allocate financial aid on a first-come, first-served basis. By waiting until later in the school year, families risk not receiving as much aid.

What if a family doesn’t think they’ll qualify for financial aid? Should they still submit FAFSA?

Yes, even if a family doesn't think they will qualify for financial aid, they should still submit FAFSA. Many universities require it to consider students for institutional aid, and even higher-income families may qualify for federal loans, which often have better terms than private loans.

What is a gap scholarship, and how does FAFSA relate to it?

A gap scholarship is a type of financial aid that covers the difference between what a family can afford to pay (as determined by FAFSA) and the total cost of the student's college tuition. Some universities offer this type of scholarship, but it is only available if FAFSA is submitted.

Why is it important to apply for FAFSA every year?

It is important to submit FAFSA every year because a family's financial situation can change over time. By applying annually, students may have the opportunity to receive more financial aid or adjust their aid packages based on changes in income or family circumstances.

Can FAFSA help if a family’s financial situation changes significantly during a student’s college years?

Yes, FAFSA can help if a family’s financial situation changes during the student’s college years. Families can appeal their financial aid package by providing updated financial information, which may lead to adjustments in the amount of aid offered.

Do all universities have the same FAFSA deadline?

No, each university may have its own FAFSA deadline, which can vary widely. It is important for families to check each university’s specific deadline to ensure they submit FAFSA on time and maximize their chances of receiving aid.

What should families do if they miss the FAFSA deadline for a specific school?

If a family misses a FAFSA deadline for a particular school, they should immediately contact the university’s financial aid office. While it may be too late for some aid, the office may still be able to provide guidance on alternative financial options or offer advice on applying for future semesters.