Before you can receive any
financial aid from the federal government, you have to submit the Free
Application for Federal Student Aid (FAFSA). If you haven’t filed your FAFSA yet
for the 2007-2008 school year, DO IT NOW!
Since
financial aid is awarded on a first-come-first-served basis, filing early can
boost your chances for a better financial aid package.
The U.S. Department of
Education reviews the information provided by you and your family
to determine your eligibility for federal student aid programs. However, you
should also realize that most states and colleges rely on FAFSA data to award
millions of dollars in aid from nonfederal programs.
The
fastest way to file your FAFSA is online at
www.fafsa.ed.gov. As you fill out your online FAFSA application, the system
will save your information so you can work on it over several days. Your answers
are checked automatically before you submit your application, reducing the
chance for delays caused by errors. If you cannot file online, get a paper FAFSA
form from your high school counselor, any college financial aid office, or ask
someone to print one off the FAFSA web site.
After
filing, your Student Aid Report (SAR) arrives in the mail within
four weeks (often sooner if you file online). Your SAR is also available online
at the FAFSA web site. Your report is then sent to the colleges you listed on
your FAFSA application.
The SAR
itemizes both the federal financial assistance for which you are eligible and
your expected family contribution (EFC), the amount your family is
expected to pay for one year of college. (Note: A FAFSA is required for every
year a student is in school.)
Each
college that accepts you prepares a financial aid package that may be composed
of federal, state, and direct aid from the school, which is communicated to you
in an award letter. To establish a student’s financial need, all schools follow
a basic formula: a school’s official cost of attendance (COA) minus the EFC
equals your financial need.
When your SAR arrives,
you will likely find Stafford Loans—the most common student loans—on the list.
Stafford Loans are low-interest, federal loans for students which—when accepted
through Nellie Mae, Massachusetts’ leading student loan provider—offer
money-saving borrower benefits. Stafford Loans have annual borrowing limits, so
there will probably be a remaining cost gap. That’s where Nellie Mae’s
ParentPLUS Loan and private EXCEL Loans can help students and parents close
college funding shortfalls.
Need help completing
the FAFSA? Talk
to your guidance counselor,
visit the excellent FAFSA web site
at www.fafsa.ed.gov, or
call the
Federal Student Aid Information Center at 1-800-433-3243.
Don’t delay
filing your FAFSA because your
2006 taxes and your family’s aren’t ready.
The FAFSA allows you to estimate those taxes then update your application
online. Better yet, why not file your taxes early to support your FAFSA
application.
Visit
www.nelliemae.com to learn
more about the
financial aid process. You can
also download useful brochures and worksheets to help you prepare for college.
