The FAFSA - 4 Big Things You Oughta Know

If you are a student or a parent of a student who is in the process of applying for college, then no doubt you have heard of the FAFSA form.

So what is it?

The FAFSA stands for Free Application for Federal Student Aid, and you can access it here.

If you plan on attending college, and you like the idea of free money, then you need to fill out the form.

Here are 4 big things that you should know about the FAFSA form:

1) Who should fill out the FAFSA?

As I mentioned - anyone that is planning on applying for college, and likes the idea of paying less for college should fill out the FAFSA.

According to CollegeBoard;

"Each year, millions—sometimes billions—of dollars in federal aid is left on the table by students who didn’t file a FAFSA. It’s simple: If you don’t file, you won’t qualify for most financial aid."

Wow. If that doesn't motivate you to fill it out, then I don't know what to say to you.

2) You Don't Need To Be Rich.

Yep, that's right. You don't need to belong to a wealthy family to qualify for financial assistance.

There are many elements that go into how much financial assistance (grants, loans, scholarships, etc.) an applicant might qualify for. Every student and every school is unique. And so, every student/school combination will produce that unique mix of elements. A myriad of possibilities.

3) Two Years Prior Is Where They Will Look

The FAFSA form will ask for your family's financial details. It specifically asks for the tax return information from two years prior to the year you are planning to enter college.

So if you plan on beginning college in the fall of of the 2023-24 academic year, you will be asked for your 2021 tax return information.

This makes complete sense if only for the reason that many families don't have their taxes completed for the year prior; by the time college applications are due.

There are other reasons for this. Also, the IRS is able to share your financial details with FSA directly through the FUTURE Act. It's pretty dry stuff, but you can learn more about this here.

4) You Don't Need Good Grades

You read that right. Not only don't you need to have a wealthy family. You don't need to have good grades to qualify for financial aid. In fact, just about all of the federal student aid programs out there won't even look at your grades for your first FAFSA form.

I highlighted "first" because things change after that first magical year.

Starting in year 2, you will need to meet specific grade requirements that are dictated by your school to keep on getting that financial aid that you won in your first year. In most cases, you won't need to get perfect marks to remain eligible. Nevertheless, keep focused, keep those grades up, and keep that financial aid rolling.

So have fun with it.

Sure, filling out college forms can get pretty dry. But in the case of the FAFSA, it should be easy to get excited about the potential for free money. It's no secret that this country puts plenty of barriers on our way to higher education (more on that in another post), but the FAFSA is one of the bright spots in the process.