Confused about the FAFSA? Read this.
Even on a good day, figuring out your financial aid can be daunting. With the FAFSA Simplification Act, there’s a lot up in the air and changes that are confusing. We’ve scoured the internet* for all things FASFA so you don’t have to. Check out the key points of what you need to know to successfully complete your FAFSA!
(I’ve provided as many definitions and descriptions as possible, but be sure to check out all the hyperlinks included throughout to learn more about any parts that may still be confusing)
First off, what is the FAFSA?
The Free Application for Federal Student Aid (FAFSA) is a federal program and application that allows colleges and universities to determine the amount of aid (scholarships, loans, work-study opportunities, and grants) a student is eligible to receive. I consider the FAFSA to be the one-stop-shop for all things student financial aid. It’s where you should always start, and it is important to complete it every year you’re in school. Colleges and universities look at FAFSA when determining a student’s financial need and how much they can offer in aid. Even if you don’t accept federal funding (IMPORTANT: you don’t have to accept any offers from the federal or state government. They’re just offers until you officially accept them), schools use your FAFSA information to determine whether you qualify for financial need-based scholarships. ALWAYS apply for the FAFSA!
When should I submit my FAFSA?
In normal years (oh how I miss the days of precedented times), FAFSA opens in October each year, and you should submit it as soon as possible. The earlier, the better. I recommend students don’t wait any longer than December to submit your FAFSA, for two reasons: 1) the longer you wait the more you decrease your odds at receiving a robust aid package, and 2) the longer you wait the more likely you are to forget to do it until it is too late. Different states have different priority deadlines (click here to learn more!) but you’re always safe to submit it in October.
Why’d you say normal times? Is the application not open?
The FAFSA Simplification Act has required the Office of Federal Student Aid (FSA) to implement some major overhauls to the financial aid system. While these changes are GREAT (many schools are projected to be able to give out more aid to their students), this has also required the FAFSA to change. The original projected release date was December 1st. Then it was December 31st. Now, the Office of Federal Student Aid has “soft launched” the application while so students and families can work on applying while FSA is working out the system kinks. It is open to receive applications, but it is not the FAFSA we know and (begrudgingly) love.
So can I go ahead and submit the FAFSA?
Yes, and no. The system is experiencing intermittent blackouts while they update and fix the glitches in the system. You can begin your application, but you may experience a glitch or it might be offline for a period of time. I still recommend trying to submit your application ASAP (I’ll be submitting mine this weekend) but be prepared for it to not go smoothly. If you run into issues, you can submit a ticket request, talk to FSA’s virtual assistant, Aidan (get the pun?), or try again later. Fingers crossed, the application should take about an hour to complete, but be ready for it to take longer or need to be completed in multiple sittings.
What do I need to submit the FAFSA? What information do they pull?
FSA uses the tax information you submit to the IRS from the previous year. For example, if you apply this year, you’re submitting an application for the 2024-2025 academic year. The FAFSA will use the 2022 tax information (and you may have to report untaxed income depending on your specific situation). What information provide depends on if you’re an independent or dependent. If you’re an independent, then you’ll provide your own tax information. If your parents or guardians claim you as a dependent on their IRS information, then you’ll provide their tax information.
FASFA calls parents or guardians who claim you as a dependent a “contributor.’ This graphic provides a good explanation of whether you need to include both parents or just one of them, depending on your situation. If you’re an independent, then you’re the only contributor needed to be listed. The new FAFSA should have some prompts in the beginning of the application that will help you identify how many contributors you need to list.
One exciting change with the new FAFSA is that it is even easier to report your IRS information. In previous years, applicants thought you had to manually enter your tax information. With the new FAFSA, everyone is able to automatically transmit your IRS information to be auto-populated into the FAFSA form (saving you time!). The one major caveat is that to transmit that info - and then have it shared with your relevant university - you have to provide consent and approval to having that information disclosed to FSA and your university. If you don’t consent, even if you complete your FAFSA, then your university won’t be able to offer you federal student aid.
(For parents and guardians: providing consent and approvals does NOT mean you are agreeing to be responsible for paying for your student’s education or federal loans. It just means you’re agreeing to have your information shared with the FSA and the relevant university. If you don’t provide consent and approval then your student won’t be able to receive federal student aid)
This year you’ll need something new, called an FSA ID. An FSA ID is your login and credentials to access all federal aid websites and systems, especially the FAFSA. In the new FAFSA, every applicant and contributor must have an FSA. That means students AND parents/guardians need their own FSA IDs to successfully complete the FAFSA. IDs are easy to create, but you’ll need to provide your Social Security Number (if applicable) and a personal email address.
(IMPORTANT: Students - don’t use your college email! Use your personal email that you’ll continue to have access to even after you graduate college)
Anything else I need?
Finally, you need to provide a list of the schools you would like your student aid information shared with! You can’t receive aid offers if you don’t share what schools you’re interested in. For current college students, just list the university you’re attending. For graduating high schoolers, list EVERY school you are interested in attending/applying to. You can find the school codes here. Some states require that you list your schools in a specific order if you want to qualify for state student aid. You can learn which states have those requirements here.
I applied and got my offer, but it isn’t enough. What should I do?
The FAFSA is a great tool, but it should not be your last stop in applying for student aid. You should also be applying for scholarships, grants, fellowships, and any other student aid you can find! Check out my favorite scholarship search tool here. You are also able to submit an appeal to your university to see if they will increase the amount of aid they can offer. Financial aid appeals are at the discretion of the specific university, so you should start by contacting your student’s financial aid office.
The FAFSA is just one tool in your arsenal to affording college, but it is one of the most important ones! It can be confusing, a bit of a headache, and daunting. But you should submit your FASFA every year you are going to be in college.
Ready to apply? Start working on your FAFSA now!
Have questions, want to learn more about other financial aid tips and tricks, or just want to talk about how confusing college admissions are? I’m here to help! Let’s connect - email me at coleman@simpsoneducationconsulting.com or sign up for our newsletter.
