With college costs increasing every year, families are becoming increasingly dependent on financial aid awards to pay for college education. The main form that students must file for financial aid is the Free Application for Federal Student Aid, or FAFSA. This form determines what aid the student receives from the federal government and also may be used by individual schools to award additional aid.
Put Savings in Parent's Name
Students are expected to contribute about 20 percent of their savings toward college expenses each year on the FAFSA formula, where parents are only expected to contribute 5.64 percent of their assets, according to Smart Money. If the parent holds onto the student's savings, the overall expected family contribution will be lower and the amount of aid will be higher.
Prepare Taxes First
Although financial aid forms accept estimated numbers for the previous year's tax information, you have to go back and revise those numbers after you complete your taxes, which means filing the forms again. Prepare your taxes as soon as possible so you can use the actual numbers on the forms and also to avoid accidentally overestimating your income and potentially losing out on financial aid.
File FAFSA Early
The FAFSA can be submitted as soon as Jan. 1 of the school year for which the student is applying for aid. Even though the forms are not officially due until June 30, submitting them early increases your chance of getting the full aid amount for which you qualify. When financial aid is low, it is often distributed on a first-come, first-served basis. According to Smart Money, most colleges have priority deadlines between early February and the middle of March.
Submit School Forms
Although most of the financial aid process takes place through the FAFSA, some schools require other forms as well. Private schools especially may require supplementary forms or the CSS/Financial Aid Profile, another extensive financial aid application. Contact the financial aid office for each school to which you have applied to find out which forms they require.
Reapply Every Year
You must apply for financial aid every year, and the same rules apply to subsequent years as do for the first year. A good financial aid award for the freshman year does not guarantee good awards in the future, especially if the family's income increases significantly. Take the financial aid application seriously every year for the best results. Filing your FAFSA online will save you time in the future because information pertaining to the previous year is automatically filled in for you.
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