How to Apply for FAFSA Loans
September 18, 2009 by admin
Filed under Student Loans
If you have ever wondered how the process of acquiring a student loan works, you will first want to know about the FAFSA, or the Free Application for Federal Student Aid. When it comes to financial aid, do you know who stands as the largest provider in the country? The federal government, of course.
The federal government provides millions of students with grants, work study awards, and student loans totaling in excess of $70 billion each year. If you are a student who needs help paying for school, it is imperative that you complete the FAFSA.
The FAFSA is easy to obtain and available at your college’s financial aid office, online, and at most libraries and high schools. Depending on the season in which you desire to begin attending school, you may find yourself with a deadline for completing and returning the FAFSA – June 30th is usually the deadline, but check with your school to see if it has a different one. Regardless, after January 1st it is strongly suggested that you submit your application as quickly as possible.
Tax forms are required to fill out the FAFSA, and if you or your legal guardians haven’t yet filed them, it is wise to simply estimate the tax information and provide the corrected information later on. There is a limit to the money granted to students seeking financial aid, which is why it is imperative to have your form turned in in a timely manner.
One benefit of filling out the FAFSA is that you only need to do it once, even if you are applying to multiple schools. And to ensure a quick response, look over your form carefully before sending it in to make sure that you haven’t forgotten to fill anything out, and that all of the information provided is correct. It will only slow down the approval process if you have to spend more time fixing mistakes.
In some instances you may be required to send in additional forms or attached paperwork, which you should also make sure you have included with the FAFSA. The approval process works the fastest for those students who have submitted their forms well before the deadline. And in all honesty, it’s best to get your paperwork in as early as possible anyhow because many financial aid services are dispensed on a first-come, first-served basis.
The quickest, easiest way to submit the FAFSA is to go online and fill it out electronically. To do so, go to www.pin.ed.gov and obtain the required PIN. Submitting your forms online provides you with a neat and clean view of the information you are supplying so that mistakes will be seen and corrected more quickly. There are other facts regarding the FAFSA that are important to understand:
For example, Selective Service, otherwise known as the draft, is a required field for all males submitting a FAFSA. Any male between the ages of 18 and 25 who fail to register for Selective Service will find their FAFSA automatically rejected.
Never supply false information on your FAFSA forms. There is a risk of being caught by the government, who audits a specific percentage of all FAFSAs submitted. If you have submitted false information on your forms, and it is discovered by the government, you will be rejected for financial aid and could possibly end up in jail.
In cases where a student is the dependent of his or her parents, and that student’s parents are divorced, the parent who retained the greater amount of custody during the previous tax year will be the one whose income information is used. Keep in mind, however, that the terms for “dependents” on FAFSA forms differ from those of income tax regulations.
For instance, in regards to the FAFSA, you are considered a dependent of your parents if you are 24 years old or younger; unmarried; and are not an honorably discharged veteran or under the custody of the court. So what happens after you submit your forms?
First, the FAFSA is entered into the CPS, or “Central Processing System.” Here, the results of your submitted information are calculated using the Federal Methodology, which ultimately determines how much you or your guardians can contribute to your loans.
From there, your Student Aid Report is created, and a copy is sent out to you, any and all schools which you have applied to, and your state’s financial aid office. Do not discard your copy of your Student Aid Report! Qualifying students have several financial aid options to choose from, including Pell Grants, Federal Family Education Loans, and Direct Loans, all of which are available no matter which school you would like to attend.
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