HOW TO APPLY FOR FINANCIAL AID FOR COLLEGE OR GRADUATE SCHOOL (FAFSA)

By Malik Snowden

1. Plan to file the application way ahead of the deadline.

Even though FAFSA opens up every year on October 1st, that’s not when its due, so don’t stress yourself out. The federal deadline doesn’t come until 21 months later. For example, the FAFSA for the 2023-2024 school year will start on October 1st and end on June 30th 2024.

Remember, states and colleges have much earlier deadlines for their own aid, and some states award aid on a “first come, first served” basis. While it's not necessary to fill out the application as soon as it’s available, you do want to file the application early.

2. Create a Federal Student Aid ID and Save Key.

You will have to fill out the FAFSA application online at studentaid.gov (the mobile app is no longer available). Before you can start the FAFSA process, you must make an account with a Federal Student Aid ID, which requires your SSN. It will take up to 3 days to confirm your account, so it is better to start the process early. Your FSA ID is a username and password for your account. It also is your electronic signature when you complete the FAFSA online.

If you’re a dependent student, a parent needs to set up a separate FAFSA ID. The parent’s FSA ID is only to sign electronically, and it requires their SSN, separate email address, and phone number. If your parent doesn’t have a SSN, they can’t get a FSA ID. They should instead insert zeros in place of their Social Security number and print the signature page at the end to sign and snail mail. You will use the same FSA ID every year you fill out the FAFSA. It can be reset if you forget your password or username, but the FAFSA locks you out after 3 attempts. It is best to reset before you try the 3rd and final attempt. Returning users can log in and hit “FAFSA renewal” to autofill the personal information from last year’s form.

You will also be required to create a “save key,” which is a temporary password that allows you to share the document between the parent if you are a student or child. Remember to write down your FSA ID and save key. Everything will be way easier if you don’t lose them. If you’re a parent of a dependent student, you can fill part of the aid application without your student’s FSA ID. On the login page, you should enter your student’s name, SSN, and birth date on the right-hand side along with the save key you created. You will not be able to use your FSA ID to login – it only works on the student’s FSA ID.

3. Add your list of schools

There is a section on the FAFSA for listing up colleges. Your FAFSA gets sent to them free of charge, so list any colleges of interest even if you haven’t applied yet. You can make changes later. You will need to include the federal school code for each school.

If you want to list more than the max amount of schools (which is 10), wait until you receive your student aid report confirming the FAFSA application was processed and sent to the first 10. After the application is processed, you can log back in, change the 10 schools, and add the new ones. To do this, “Make FAFSA Corrections” and go to the schools section.

4. Gather your financial documents before filling out the form

You will need your tax return from the previous year to file for next year. Dependent students will need to provide financial information along with their parents information. Independent students must provide only their own information and if married, their spouse’s information too.

Required documents:

• Driver’s license (if you have one)

• Federal income tax returns (if filed) and W-2s from the previous year

• Nontaxable income records, such as child support and veteran benefits, from the previous year

• Bank statements showing your most recent asset information, including checking, savings, non-retirement investment records, parent-owned college funds, real estate (but not your primary home), business records, investment farms, and student accounts such as UTMA or UGMA accounts.

• If your financial situation has changed because of losing a job, for example, you will still use the same tax return. After filing the FAFSA, contact the Schools to explain your family’s change.

5. Fill out the FAFSA sections

The first thing to do is choose the correct FAFSA year. You will see two options, one for the current academic year and one for the next year. You want to select next year then complete each section. Make sure to check the box that you want to be considered for work study. Doing so gives you the option if available, and you are not required to accept it.

Many families qualify for IRS Data Retrieval, also known as DRT, to autofill the student and parent income sections. You will see a “Link to IRS” button if you qualify to use the tool. The DRT fills tax return information directly from the IRS. I strongly recommend using the tool because it is fast, accurate, and limits the chances of mistakes when filling out information. Take note that the FAFSA form will not display numbers, only the phrase “Transferred from the IRS” so you are not able to verify numbers on your tax return. While the tool to retrieve data from the IRS has been a big help in making the FAFSA application process easier, there are a couple of DRT warnings:

• Divorce: Don’t use the DRT if you’re in the process of divorce or separation. FAFSA only requires information from the parent the child lives with for more than half of the year (even if just by a day or two). That parent should manually enter their income and an estimate of their taxes paid.

• IRA rollover: When you use the DRT, be sure to watch for the FAFSA question asking if you had a rollover. The FAFSA subtracts the value of the rollover from your income. However, sometimes families miss the question, and then your rollover isn’t subtracted. That mistake artificially inflates your income, and consequently the amount a college thinks you can afford to contribute.

6. Watch out for common mistakes

Three common mistakes include listing a parent or student-owned 529 college savings account as a student asset, reporting retirement account balances (money in a 401(k), IRA or Roth IRA, for example), and including the home equity value of your primary home.

7. Check your work before you submit the FAFSA

Making corrections after you submit the aid application can be a pain and may even delay your financial aid notification. Remember to save often as you fill out the form and save at the end. Reread all your information and look for extra zeros. Once you’ve submitted your FAFSA, look for a confirmation screen showing it went through. The confirmation page also allows transferring information to a sibling’s FAFSA.

Additionally, some states have their own financial aid form and partner with the FAFSA to allow you to transfer your information into the state form. Both of these options appear only on the confirmation page and must be used when you’re still in the form, so take advantage of them. If you don’t, you’ll need to fill out those additional forms separately.

8. Review your Student Aid Report and make corrections if needed

If you submit the form electronically as most families do, your Student Aid Report should come back in three to five days — or two weeks for a paper signature page (either process takes longer if you submit without including an email address).

For federal financial aid, your financial need is equal to a college’s cost of attendance minus your EFC. Note that the Student Aid Report is not the same thing as a financial aid award letter, which comes after you’ve been accepted to colleges.

When your Student Aid Report is ready, you’ll receive an email notification to log in, review, and correct or update mistakes if needed.