Filling out the Free Application for Federal Student Aid can be a little stressful, but completing this form is one of the smartest moves college-bound students and their parents can make. That’s because the FAFSA is the gateway to federal financial aid, grants, work-study programs and student loans. Every year, approximately 13 million students receive more than $120 billion in aid through FAFSA, making it the single largest source of funding to help families pay for college.
Even if you’re not sure whether you will qualify for need-based financial aid, submitting the FAFSA ensures that you’re considered for every opportunity available. In many cases, completing this one form can make college significantly more affordable.
The good news? Thanks to recent updates, the current FAFSA is streamlined and easier to navigate than in past years, with significantly fewer questions. Many families are able to finish filling out the form in 15 to 30 minutes.
If your family is preparing to tackle the FAFSA, here are some important things to know:
- Don’t Let Anxiety About Savings Keep You From Applying. A common misconception is that having money saved for college automatically disqualifies a student from receiving financial aid. That’s simply not true. Some family assets are factored into the financial aid calculation, but the impact is generally far smaller than many parents fear. Income typically plays a larger role than savings in determining a student’s eligibility.
- Apply Online. Experts say the online FAFSA is easier to fill out than the paper form because it uses skip-logic to ask only relevant questions. Online applications are processed faster because they are found to be more accurate — largely due to the FAFSA website being designed to catch the most common mistakes.
- Create a StudentAid.gov Account for all Contributors. Everyone who is required to provide information on the FAFSA form — including students, biological and adoptive parents, and spouses — needs a StudentAid.gov account before completing their section of the online form. Don’t forget to keep your account usernames and passwords handy.
- Get Started Early. When it comes to applying for federal aid, time is a critical factor. The FAFSA usually opens on October 1 for the following academic year, so mark those calendars. Filing early can only improve your chances of maximizing any available aid. To ensure that you’re fully prepared, take the time to gather all the necessary documents, (e.g., Social Security numbers, tax returns and bank statements, etc.) before starting your application. If you are a dependent student, your parents will need most of these documents.
A 529 Plan Combined with FAFSA Is a Smart Strategy. A 529 plan offers valuable tax advantages when saving for education, and recent FAFSA changes have made these accounts even more beneficial for many families. Grandparent-owned 529 assets and distributions no longer affect federal financial aid eligibility, making it easier for them to help fund a child’s education. While some private colleges may evaluate these accounts differently, these changes have made 529 plans a strong option.
Bonus Resource: For families seeking a 529 plan, Florida offers two excellent options. The Florida Prepaid 529 Plan lets families lock in future tuition and dormitory costs at today’s prices, while the Florida Investment 529 Plan offers flexible savings and investment strategies. From a reliable, risk-free approach to a more customized investment strategy, families can choose the path that works best for them.
Completing the FAFSA as early as possible can open doors well beyond federal aid. Many states and colleges use your FAFSA information to determine eligibility for their own scholarships and aid programs, which can have limited funding and might be distributed on a first-come, first-served basis. Some private scholarship organizations require a completed FAFSA as well. Filing as soon as possible can help families maximize the financial aid opportunities available to them.
Since 1988, Florida Prepaid’s goal has been to help make saving for college affordable and attainable for all Florida families. Build your perfect college savings strategy in minutes!
