Did you know that the average yearly cost of college is nearly $30,000? Many families aren't prepared for all that's involved in the cost of higher education, yet nearly 70 percent of high school graduates will attend college for at least some sort of degree.
Although it seems hard to believe, the window to file your child's 2021-2022 FAFSA is right around the corner. However, many parents of high school seniors have no idea what's involved in filing this important document for federal student aid, which means that many families miss out on important grants and student loans that could help their soon-to-be college freshman pay for their education.
What You Need Before Filing
Although many families feel like the FAFSA is a pain, it's much easier to fill out the form if you gather all needed information ahead of time. Before you can do anything else, you'll need an FSA ID for the student applying for aid and one parent too. Luckily, applying for an FSA ID is fairly easy and only requires a Social Security number and a phone number or email address. However, waiting until the last minute to obtain this ID can delay your FAFSA application process.
In addition to your FSA ID, the U.S. Department of Education says that you'll need several important documents to complete your actual FAFSA. These documents include Social Security number for the student applying (or Alien Registration number for non-citizens), previous year tax records for both the student and all parents (i.e. 2019 tax info for the 2021-2022 school year), records of all assets, and records of any untaxed income.
Finally, you'll need to know what schools your child is interested in attending and even possibly rank them in order before you apply for financial aid. You can list up to 10 schools at a time on your FAFSA form, but there are some steps you can take if you're applying to more than 10 schools.
The Steps To File Your FAFSA
Once you've acquired all of the needed documents and information, you just need to wait until October 1 rolls around so that you can file your child's FAFSA. The portal opens for applications for the next school year every October 1, but you often have until April 15 or even later to file if needed. Although most schools won't look at your FAFSA to offer any income-based scholarships until after you've applied and been accepted, many schools offer financial aid on a first come, first serve basis -- which means applying early pays off.
When you're ready, go to FAFSA.gov and start filling out all of the required information. In many cases, this process can be pretty easy if you use the The IRS Data Retrieval Tool (DRT) to transfer your income information from the IRS directly to the FAFSA form. However, not all families will have luck with this depending on how you filed tax returns, so always make sure you have tax returns handy just in case.
Once you've filled out everything else, you'll also need to enter the six-digit code for any school you're applying to. You can use Federal School Code Search to look up your school and get their six-digit code.
Then, once you're done with everything, you "sign" your application using your FSA ID.
Common Mistakes That Cost Students Money
Unfortunately, many families simply don't know how to handle the college aid application process. In fact, college research website Cappex says that many parents make the same simple mistakes.
First and foremost, many families don't fill out the FAFSA at all. While the FAFSA may not help middle class families qualify for grants or need-based financial aid, even students who plan to take out student loans or obtain other scholarships.
However, even when families do apply for the FAFSA, many wait until the last minute to do so. Students who file the FAFSA in the fall receive, on average, as much as double the financial aid as those who wait until the spring. This same process applies to private scholarships, especially since most of those have deadlines in the fall or winter of your child's senior year.
Finally, students and their parents always have the right to file an appeal for more financial aid -- but many families fail to do this. If your family has any special circumstances that aren't reflected on tax returns or if your family has experienced any significant financial changes since the tax returns used on the FAFSA, it's always worth contacting the school(s) your child is considering and asking them to help make amendments to your child's FAFSA or even just providing a professional judgment review.
Although you may feel intimidated by the FAFSA, there's nothing to worry about. Just make sure to collect all the information you need in advance and apply early. These tips will help you (and your child) save a lot on college tuition.
Sources: Federal Student Aid, U.S. Department of Education, Cappex