Five Tips to Figure Out the FAFSA

If you already havent run into the alphabet soup of financial aidEFC, FFEL, SARwhile figuring out how to pay for college, then you soon will. Especially the FAFSA, which stands for the Free Application for Federal Student Aid. The FAFSA is the federal instrument for determining financial need. This is the basis for applying for federal financial aid.

Whether or not you think that you are eligible to receive money from the government, it is important to complete this form. However, this same form is often used by a schools financial aid office as a basis for calculating need- or merit-based financial aid that are sponsored by other sources that are available through the college or university.

While the following tips to fill out the FAFSA might seem mind-numbingly detailed, theyre essential to filling this critical form out correctly. Take it one step at a time and soon youll be licking that envelope or clicking that mouse and the FAFSA will be sent. Then, all you have to do is wait for the results. To follow are the five important tips to completing the FAFSA form. So, here we go!

1.  Before sitting down to complete the FAFSA form, you will need to gather the following financial records:

• Your parents (or guardians, if they will be responsible for any of your expenses) income tax return for the last year, estimated if necessary
• Your income tax return for the same period, estimated if necessary
• W-2 forms for your parents or guardians and yourself, or the December 31 pay stubs for you and your parents or guardian

2.  A FAFSA form is available from your high school guidance office or career center or through a colleges financial aid office. You can also get a copy by calling 800-4-FED-AID (toll-free) or find it on the Web. Complete the form online or mail it as quickly as possible after January 2. Deadlines vary by college and state and some are as early as February 1. Getting financial aid is a first-come, first-served situation. The sooner you submit the completed FAFSA form, then the more likely a colleges money will be available to you.

3.  You will need to have your parents complete their income tax calculations for your junior year. They do not have to mail their return to the IRS until April 15, but they need to calculate their taxes for purposes of determining your eligibility for aid. You will need to calculate your income tax return as well because the income you earn is used to determine financial need, too.

4.  In order to complete the FAFSA form, you will need to know whether you and your parents used the 1040, 1040A, or 1040EZ form to file your tax returns. The FAFSA directs you to the exact lines on these tax forms from which to take the numbers to fill in the FAFSA.

5.  You must place on the form the federal college code, not the code from the SAT/ACT program, for all the colleges to which you have applied. Ask your guidance counselor for the codes or retrieve them from the FAFSA Web site. The result of your eligibility test will be supplied to your colleges electronically by the federal government.

And the Winner Is

At the same time you receive a response back on a form called a Student Aid Report (SAR) from the government, your results will be sent to your colleges electronically. If you filed electronically, then the results will be available in two to three weeks. If you filed by paper, then it will take four to six weeks for your FAFSA to be processed.

Your colleges will interpret your eligibility, and you will receive an award letter from the financial aid office. Each colleges award package is determined by the extent of its financial resources. This means that money packages may vary greatly from one college to another.