The federal government is a major source of financial aid. I was clueless about the FAFSA. (Free Application for Student Aid) I assumed my husband and I made too much money and would not get much from the government. It wasn’t until I spoke with a financial aid counselor at the University of Illinois that I became aware of the fact that since we were guardians of the boys we would not have to give our income because they were considered “wards of the court”. David was 8 and Mike was 3 when we became their guardians.
We never considered adoption because we wanted both boys to keep their father’s name. Had we adopted them, we would have had to give our income on the FAFSA. That also meant that David would be considered an independent student which also made him automatically eligible for the Pell Grant. The Pell Grant is the major grant that opens the door to other grants. The Financial Aid office as a part of their verification process may ask for proof of guardianship. It has to be a legal document signed by a judge. So, if you are in a situation where you are raising someone else’s child, for purposes of financial aid you need to have legal documentation.Use the Federal Student Aid Estimator to determine what you might be able to get from the federal government. You no longer have to be in the dark about what you can expect. You should be aware that if you were to qualify to get the maximum benefit, the amount in most cases would be far less than what you would receive from getting a full tuition scholarship based on academic merit. The government basically makes available the opportunity for you to go into debt by offering loans to students in Freshmen year. Freshmen will be offered $5500 in student loans and more as they go forward. It is important that students continue to look for scholarships while in college.
File as soon as you can after October 1st of your senior year. You and one parent will need to apply for a FSA ID prior to filling out the FAFSA. Keep your personal information in a safe place. This will be your ID for your entire academic life. You do not need to wait to file your taxes. You can use information from the previous 2 year’s returns. The important thing is to get into the system as soon as possible. The Financial Aid office at your school will specify the deadline date for submission which varies by school. The reason you want to file early is that some colleges process aid applications on a first-come-first-served basis. The day you complete the FAFSA and hit the send button you will get an email verifying your submission, with the time and date of your submission. This information is sent electronically to the schools you have specified on the application. This is very important because your financial aid awards are processed according to date and time. You want to get an early number and be in front of the line and not behind because schools have a finite amount of money to pay out. Approximately 3 days after receipt of the email confirmation the student will receive an email confirming if the FAFSA was processed successfully or not. If it was processed successfully, you will have access to your SAR (Student Aid Report) which should be printed and reviewed for errors.
EFC-Expected Family Contribution
As mentioned before, once the FAFSA is submitted the student will receive an email confirmation. Make sure you read the email in its entirety and print. Look for the letters EFC (Expected Family Contribution) and a number. This amount is what the government has determined you may have to pay out-of-pocket, based on the income you submitted. This is the amount deducted from the total cost of attendance to determine financial need, the amount processed for your award. For example: If your EFC is $5,000 and the cost of attendance for a year is $20,000, your financial need will be based on $15,000 ($20,000 – $5,000) and your out-of-pocket expenses would be $5,000. David’s EFC was zero which meant he had no out-of-pocket expenses and was eligible for everything the government had to offer. He was able to tap into aid based on merit and financial need. If your income is $26,000 or less then you most likely will have an EFC of zero.
- Apply for a FSA ID prior to filing the FAFSA and keep youe information in a safe place.
- Seniors should file beginning October 1 and strive to have it completed by mid to late October.
- You can submit your FAFSA using tax information from the previous 2 years and make a correction if needed.
- Attend Financial Aid workshops provided by your school or community.
- Research and educate yourself on the financial aid process beginning freshman year of high school.