Why is the FAFSA so important?

It is that time of year again; when high school seniors across the country complete the daunting task of submitting college applications and waiting anxiously for hopefully welcoming replies. But the applications do not end here, and one of the most important is just around the corner. After the college applications go out, it is time to fill out the Free Application for Federal Student Aid (FAFSA).

If you are a potential college student, or if you are the parent of a potential college student, or if you are in any way related to any of these people -- chances are that you have heard about the FAFSA! But why is so much emphasis put on this one document? To put it simply, we worry so much about the FAFSA before college, so that we do not have to worry so much about debt after college. In more specific terms, the FAFSA is important because:

• It makes you eligible for the most student-friendly aid you will find.

• Nearly everyone who applies will be offered aid of some sort.

• Aid is generally offered regardless of credit history.

• The loans that you may be offered after filing the FAFSA do not require cosigners.

• Federal loans generally are easier to deal with after graduation than are private loans.

The sources to whom one may turn to obtain student loans are numerous, but overwhelmingly the loans with the best rates and most attractive terms and conditions, as well as numerous grants that do not need to be repaid, are provided by the federal government. In general, federal loans offer many advantages over private loans. The one single, simple, easy way to apply for all types of federal financial aid for which you are eligible is to fill out the FAFSA.

Filing the FAFSA to help finance your college education should be your first financial move towards college no matter who you are, where you are attending school, and whether you are a traditional or non-traditional student. In addition to eligibility for federal aid, many states and individual schools determine non-federal aid eligibility with the FAFSA as well.


Students may first submit their FAFSAs beginning after January 1 for the year that they are requesting aid. For example, if you intend to start school in August 2008, then you can submit your FAFSA after January 1, 2008. While the deadline for applying is not until June or July, it is very important that you file your FAFSA as soon as possible after January 1 in order to have the best chances to secure the aid that you need. (Applications submitted before January 1 are not reviewed.)

This is especially important because aid is granted based, in part, on a first-come, first-serve basis. Not only that, but the sooner you apply the sooner you receive your results. When finances are an important consideration for deciding upon a school (and often they are), filing the FAFSA early will give you the most time to decide among your options.

Filling out the FAFSA

You can fill out the FAFSA either online or via paper application. Online applications, as well as renewal applications for students who previously have filled out the FAFSA, can be found at the Department of Education website at fafsa.ed.gov. Paper applications can be obtained at a variety of locations including high schools, public libraries, and universities in which you are interested.

While you should choose to apply however you feel most comfortable, the online application does offer several advantages. If you apply online, you receive your results sooner, you have immediate access to resources designed to help you with your application, there is less of a chance of submitting your FAFSA with an error, and you can be certain that your application is received by the Department of Education.

Not to discourage you of course, but filling out the FAFSA generally is not a quick and easy task -- unless you are sufficiently prepared. In addition to your personally identifying information, including a unique PIN number provided to you by the Department of Education, you will need ALL of your financial information (and most likely your parents’ too). A bit of organization and record keeping is small price to pay, however, for the opportunity to acquire federal student aid in comparison to your other options.

After the FAFSA

After filling out the FAFSA, you will be notified of your Expected Family Contribution (EFC) toward your college education, or the amount of money that is deemed your family’s responsibility to pay. It will be included in your Student Aid Report, which then will be used by your school(s) of interest to determine your financial aid package(s). If you decide at this time that you do not have enough aid to cover your educational expenses, then it is time to look toward other alternatives. To learn more about your other financial aid options and how to apply for them, visit our private loan page.