What's the FAFSA?

For high school seniors applying to college right now, you might have heard your parents and college counselor telling you “Do your FAFSA right now.” They’re not wrong, but what exactly is the FAFSA?

FAFSA stands for “Free Application for Federal Student Aid.” The Federal Student Aid is a part of the U.S. Department of Education that gives financial aid to those who are eligible and qualify. It’s best to apply early so you could get higher chances of getting more money. Make sure to create your account and save the login information as you’ll go back to it every time you reapply. After that, follow the steps and complete your FAFSA. Reminder to also be prepared with your parents’ tax information. 

Types of federal aid that could be shown in your financial aid package include grants, loans, and work-study. Grants are FREE money that you don’t have to repay. Student loans are loans that you have to pay with interest. There are two types: unsubsidized and subsidized. Subsidized loans don’t add on interest while you are still in school and are only available to those who demonstrate financial need. Meanwhile, unsubsidized loans are available to everyone but have higher costs because the interest increases over time, even while you are still in college. Lastly, there’s federal work-study, where you’re given the opportunity to get a job on campus to help with your costs. 

After you submit your FAFSA, make sure to check back on your account and emails because it will give you your Student Aid Report (SAR), which tells you how much is your estimated family contribution (EFC). Aside from your financial aid, also make sure to look for scholarships, locally and nationally. 

We know that the costs of college are really expensive so do your FAFSA now and let it help you and your family relieve that burden. The Federal Student Aid site created an infographic, shown above, on the financial aid process, telling you everything you need to know. 

Look out for another blog coming soon, talking about more of the financial aid process, especially for students applying to private schools!