Potential Magazine College and Career Organizer 2020 | Page 40

pay the way
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FAFSA
A Step-by-Step
Guide to the FAFSA
There’s always one major thing weighing on every-
one’s mind when applying to college: money. More
specifically, how to find as much money as possible
to fund your education. According to the office of
Federal Student Aid, $120 billion in federal grants,
loans, and work-study funds are awarded annually to
more than 13 million students. Want to be part of that
13 million? The single most important step is filling
out the FAFSA, or the Free Application for Federal
Student Aid.
All high school seniors are eligible to fill out the FAFSA starting on Octo-
ber 1. You’ll want to file as early as possible–financial aid is often awarded
on a first-come, first-served basis. Even if you don’t think you’ll qualify for
aid, file your FAFSA! Seriously. Many schools require it for admissions and
scholarships.
FAFSA FAQs
Q: When

will I get my results?
A: After your FAFSA is filed, your Student Aid Report (SAR) should
arrive within a few weeks. At this point, if you’ve already been admit-
ted to a school (or a few schools), you should start receiving financial
aid award letters.
According to nerdwallet.com,
students missed out on
$2.6 billion
in aid in 2018,
because about 661,000 of the
nation’s graduates who were
eligible for a Pell Grant didn’t
complete their federal financial
aid application.
37 %
Over a third
of 2018 high
school graduates didn’t
complete the FAFSA.
Q: W
 hich year’s tax information do I submit?
A: You’ll need the numbers from your prior-prior year federal income
tax return. For example, for the 2020-21 academic year FAFSA, you
would use your 2018 income tax return.
Q: D
 o I really have to file it?
A: Technically, no. But yes! There is no income cutoff to apply, and it
won’t just affect federal aid; your college may offer you other financial
awards if you have a completed FAFSA on file.
How Financial Aid
is Calculated:
[Cost of tuition, fees, room & board,
and books]
Q: D
 o I have to file it more than once? - [Your EFC]
Q: W
 hat if I'm not a senior? Colleges will award financial aid packages to
help meet the financial need determined by
the equation above.
A: Yes, you’ll have to file a new FAFSA every year you’re in college.
A: If you want to know how much federal student aid you might be
eligible for once you do start applying to colleges, the FAFSA4Cast-
er is what you need. Just fill out some basic information, and it will
estimate your eligibility for federal student aid. Check it out at www.
fafsa.ed.gov!
40 | College Organizer 2020
www.potentialmagazine.com
= Financial Need