When you start researching financial aid options for college, one term you’ll come across a lot is ‘FAFSA’. Understanding what FAFSA stands for is important as it is the key to unlocking more financial aid. So, what does FAFSA stand for?
FAFSA stands for Free Application for Federal Student Aid. This is an application you need to submit to determine your eligibility for all federal financial aid programs. It is administered by Federal Student Aid, which is an office of the U.S. Department of Education.
What Does the FAFSA Stand For? Important Things to Know
- If you’re applying to college, you MUST file the FAFSA, regardless of your family’s financial circumstances. Only students who file this form are eligible to receive any type of federal or institutional financial aid. Those who don’t submit this application will be ineligible to receive any federal or institutional financial aid funding. This is regardless of any other circumstances.
- The FAFSA is your gateway to qualifying for federal grants, scholarships, student loans, and work-study opportunities. It also qualifies you for various types of institutional aid.
- You can find and submit the FAFSA at www.fafsa.gov. At this site, you will also find more information about what FAFSA stands for and how it works.
- Only students enrolled at accredited institutions in the US qualify for federal student loans.
- The FAFSA opens on October 1, every year, and the deadline for applications is June 30 of the following year. The application is only valid for one academic year. You MUST file the FAFSA every academic year to receive financial aid for that particular year. If you fail to submit your application, you won’t qualify for aid for that year. You’ll have to wait for the next year to apply.
- Although the FAFSA is open for nine months, it’s advisable to submit your application as early as possible. Financial aid is disbursed on a first-come-first-served basis. You’re more likely to get the maximum aid you’re eligible for if you submit your application early. Once the aid allocated for that academic year is exhausted, it’s exhausted. The federal government won’t allocate any more funds for that academic year.
- Some colleges and even some states have deadlines for submitting the FAFSA. Make sure to check the FAFSA deadlines here so you don’t miss out on filing this important form.
- You must make sure that you provide all the information they ask for and that all the details you provide are correct. Incorrect information will affect your eligibility for financial aid.
- The federal government calculates your eligibility for financial aid based on your EFC (estimated family contribution). They will send you a detailed breakdown of the different components of your financial aid package along with your college acceptance letter.
- You don’t necessarily have to take on the full amount of student loans that the federal government offers you. If you’ve managed to get some extra cash after submitting the FAFSA, you have the option to accept only as much as you need. You can and should decline the excess amount. This will help lower your student loan debt.
How to File the FAFSA
Make sure you also save your FSA ID details. You’ll need them to log in and keep track of your application throughout the process. Even after receiving the funds, you will need your FSA ID to log in to determine your student loan servicer and other details about your student loans.
Filling in the FAFSA can be complicated. It requires you to submit your personal information in addition to detailed information about your family’s finances. The form has multiple options depending on your family unit.
Keep these details handy before you start filling in the FAFSA:
- Personal details – Social Security number, and postal and email addresses
- Academic details – Name of your high school, the year you passed out, colleges you are applying to
- Family’s financial details – Income statements, tax records, expense records, and debt records
What Happens After You Submit the FAFSA?
You can submit the FAFSA electronically or via traditional mail.
About 3 to 5 days after you submit the FAFSA electronically, you will receive your Student Aid Report or SAR. This document summarizes the details you filled in on the FAFSA. It also includes basic information about your financial aid eligibility.
If you submitted your FAFSA via traditional mail, it may take about two weeks for you to receive your SAR.
It’s important to review your SAR to ensure that it’s complete and all details are 100% correct. If you spot any inaccuracies, you need to correct your FAFSA form. You can do this by logging into the Federal Student Aid site using your FSA ID. If no changes are needed, you don’t need to do anything. Keep the SAR for your records though.
You don’t need to submit the FAFSA or SAR to any colleges you are applying to. All the schools listed on your FAFSA form will receive a copy of your SAR directly.
Now that you know what the FAFSA stands for and how it works, make sure to fill out and submit the form as early as possible.
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