5 Myths About the FAFSA

Interesting Facts About the Financial Aid Application

The Free Application for Federal Student Aid, better known as the FAFSA, can sometimes feel more overwhelming to complete than filing your federal tax returns.  However, being aware of the most common myths, will give you some helpful tips on filing the FAFSA.

Myth #1: The FAFSA costs a fee to complete.

False.  This application is absolutely free!  In fact, the first word of the acronym stands for FREE.  Students and parents may easily make the mistake of typing the website address as FAFSA.COM, however, this is a government form, therefore, the correct web address is WWW.FAFSA.GOV.  Note: If you are prompted to enter credit card or banking information, this is not the correct site.  You should never pay one cent to complete this form.

Myth #2: I can’t file my FAFSA until my taxes are complete.  

False.  Filers may use the income on their W-2 forms and/or estimate their figures on the FAFSA prior to their tax filing.  Once they have completed their tax returns, they can log back into their FAFSA account and update their information, where necessary.  

Most states have scholarships available to students who file their FAFSA by the priority deadline posed by the state. (i.e. Maryland – March 1^st).  Therefore, it is beneficial for students to at least submit their preliminary FAFSA for full aid consideration.

Myth #3: I just want student loans, so I don’t need to do the FAFSA.  

False.  Actually, federal student loans are a source of financial aid and does require a FAFSA on file annually in order to be eligible to obtain federal Stafford loans (subsidized and unsubsidized), Perkins loan, and some alternative/private loans.

Myth #4: I live on my own, so I should be considered an independent student. 

The Department of Education (DOE) considers a student “independent” if they meet any of the following terms:

a.     At least 24 years old;

b.     Married;

c.      Has a child(ren)

d.     Has dependents

e.     Served in the armed forces;

f.      Was and/or is currently at risk for homelessness

g.     Was in legal guardianship;

h.     Was in foster care by the age of 13

Any student who does not meet the criteria above must include at least one (1) parent on their FAFSA and is considered a “dependent” student by the DOE, even if they are living on their own.  If the student’s parents are married, both parents must be included on the application, along with their combined annual wages and income.  (This is also true if the primary guardian is remarried; the stepparent must be included on the application.)

 Myth #5: I make too much money! I will never be eligible for aid. 

This is not necessarily true.  There are many factors that are taken into consideration in determining a student’s financial need. 

The EFC or the ‘Expected Family Contribution’ is a number that is calculated and distributed once the FAFSA is submitted on-line.  This EFC number reviews the annual income, household size, number of family members in college, residency and additional untaxed income. 

Even though a student may not be eligible for the Federal Pell Grant; they may still display financial need and be eligible for alternative aid (i.e. state and/or institutional funding).

Resources:

FAFSA: www.fafsa.gov

FinAid: www.studentaid.gov 

The 2015-16 FAFSA becomes available on January 1, 2015!

Visit www.fafsa.gov to submit your FREE application.

Helpful Tips! Do your research to find helpful resources to assist you in funding your education for free through grants and scholarships ("free money") first!  Higher education is an extremely costly investment, therefore student loans may also be one of your resources.  Make smart choices to limit the amount you must borrow throughout the life of your education.  If you must resort to borrowing student loans, there is an awesome option to pay down your loans through SponsorChange!  For additional information about SponsorChange, contact me at keia@sponsorchange.org 


"In the middle of difficulty lies opportunity." - Unknown

Keia Brown

Miss District of Columbia International 2015