What is the FAFSA, and Why is it Important?

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The FAFSA (Free Application for Federal Student Aid) is the key to unlocking maximum financial aid for college. Think of the FAFSA as your gateway to paying for college. The FAFSA determines how much financial aid you can receive based on your financial situation.

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If you don't fill out the FAFSA, your college and the government won't know that you need financial help. You can submit the FAFSA to as many schools as you like—all free of charge. Completing the FAFSA qualifies you for aid from the federal government, state governments, and colleges.

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There are many misconceptions about the FAFSA. Some people believe they won't qualify for aid or that it is too difficult to fill out. However, anyone can apply for financial aid. The FAFSA has been simplified and streamlined, making it easier than ever to apply. The sooner you fill out the form, the sooner you will be in line for funding.

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What You Need to Apply for Financial Aid via the FAFSA

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Key Documents and Information. You will need to gather some documents and information before you begin the FAFSA. These include:
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• Your Social Security number and driver's license
• Your parents' Social Security numbers (if you are a dependent student)
• Your Alien Registration number (if you are an eligible noncitizen)
• Your federal income tax returns (and your parents' returns if you are a dependent student)
• W-2 forms (and your parents' W-2s if you are a dependent student)
• Records of your untaxed income (and your parents' untaxed income if you are a dependent student)
• Information on your assets (such as bank accounts and investments) and your parents' assets (if applicable)

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Common Mistakes. Here are some tips to help you avoid common mistakes when completing the FAFSA:
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• Start early and gather your information in advance.
• Read the instructions carefully and answer all questions honestly and accurately.
• Double-check your work before you submit the form.
• Create a Level All account and use our step-by-step FAFSA tutorial.

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4 Main Types of Financial Aid. There are four main types of financial aid:
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• Grants: Grants are free money that does not need to be repaid.
• Scholarships: Scholarships, like grants, are free money.
• Work-study: Work-study jobs allow you to earn money to help pay for college.
• Loans: Loans must be repaid with interest.

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Eligibility. To determine eligibility for financial aid, the Department of Education uses your FAFSA to calculate your Student Aid Index (SAI). Your SAI is a number that colleges use to determine your eligibility for federal student aid.

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Maximizing Your Eligibility for Financial Aid

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Key Strategies. There are several strategies for maximizing your financial aid, including:
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• File the FAFSA early. The earlier you file, the better your chances of receiving aid.
• Apply to a variety of schools, including some that are less selective.
• Negotiate your financial aid offer with the schools that accept you.
• Search for outside scholarships.

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Income and Assets. Your income and assets affect your financial aid eligibility. If you have a low income and few assets, you will be eligible for more need-based aid. Need-based aid is aid that is awarded based on your financial need.

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Important Deadlines and Changes for the FAFSA

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FAFSA Timing
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• The FAFSA opens on or before December 1 each year. The federal deadline to submit the FAFSA each year is June 30, but each state and college may have earlier deadlines.
• You can submit your FAFSA to be considered for federal aid at almost any point before the federal deadline. Check each school's deadline for institutional grant aid, as many states distribute aid on a first-come, first-served basis.

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Key Updates. In 2023, the FAFSA was updated and simplified. It now includes several new features, including:
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• The Student Aid Index (SAI): This number has replaced the Expected Family Contribution (EFC) and is used to determine your eligibility for federal student aid.
• Direct Data Exchange (FA-DDX): This feature allows you to transfer your tax information directly from the IRS to your FAFSA.

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It is important to submit the FAFSA on time. If you miss the deadline, you may not be eligible for financial aid. You also won't be able to make corrections or updates to your FAFSA after the deadline has passed.
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Save thousands of dollars on college and never miss a deadline again by joining Level All today!