What the HECK is the FAFSA?

There is a veritable stampede of young people today trying to get into college but few of them seem to really understand the enrollment process.

One of the reasons ABC College Planning exists is because there is a shortfall when it comes to guidance on how to pay for college and this at a time when so many need financial assistance. 

One of the myths of the animal kingdom is that the Ostrich, when sensing danger, will bury its head in the sand to hide from the threat. It’s not true, of course. It’s an optical illusion. These large, flightless birds aren’t sticking their heads in the sand at all. They are merely using their beaks to dig holes, either looking for food or preparing a nest for their eggs. But humans exemplify this mythical behavior when they fail to acknowledge the facts about what is required for their children to attend college. Often, when they should be making plans for this eventuality, they understandably have their heads buried in the ordinary affairs of life, like paying the bills, keeping their jobs.

Many automatically assume that the public school system will do their planning for them. But that’s a little like assuming that someone else will change the baby. Then when they are finally face to face with the situation at hand, it is usually too late -- too late for the student to make an educated career path choice -- too late for the parents to strategize financially. Quite often, when students and their parents attend the free clinics put on by ABC College Planning
Institute, we ask: “What is the FAFSA?” and we receive blank stares from both the parents and their students. Usually one or two in the crowd will know, so we let them explain it.

Simply put, if you want to get a grant to pay for school, then fill out the FAFSA, which stands for “Free Application for Federal Student Aid”. It is the first step to getting grants, federal loans, federal work study and need-based scholarships. Click here and follow the cookie crumb trail to see the form: http://www.fafsa.ed.gov/

 
No, it’s not welfare. And yes, even wealthy people fill these forms out.  Why? To keep from completely shredding their retirement plans just to pay for their kids’ education. The colleges you apply will use information you put down on the FAFSA form to see what aid you qualify for. Colleges have a limited amount of federal aid and need-based scholarship money to award. Often it is awarded on a first-come first-served basis. It’s important to fill out the FAFSA as soon as you can, then because there are deadlines involved. Visit the following website to see what they are according to state and school of choice: http://www.fafsa.ed.gov/deadlines.htm

Another reason that ABC College Planning exists is that filling out the FAFSA form isn’t so easy. It’s like filling out a tax form. It’s confusing for most people. Yes, you can fill it out yourself but, just like a CPA knows his way around the tax laws and their accompanying forms, a college planner knows his way around the FAFSA form and understands how important it is to fill out the form correctly.

You need to know that the form uses a July to June calendar and we are ending the 2011-2012 year and are just beginning the 2012-2013 year. The new form will be available January 1, 2012. (I told you it was confusing)

You will need your 1040 form with you to complete it accurately. But if you are a business owner, or claim expenses on your return, the form will not be simple at all. To compound the situation, not answering a question correctly could cost your family thousands in financial aid. Remember that the form calls for your last year’s income for the household, but is based on your current household and your current assets. You have to fill one out every year to re-qualify for the financial aid package.

Visualize in your mind’s eye a long line of people in front of a building. The line snakes around the corner and up the steps and through a double door and finally ends at a desk below a huge sign announcing: “Free Money For College”. Everyone in the line has a form in their hand. If you made a mistake filling out your form, you can’t ask the person at the desk to correct it for you. You lose your place in line and have to go back to the back. To quote Charlie Brown of “Peanuts” fame, “Aaaaguuuuuughhh!”

But the FAFSA is a complicated form for some. And, unfortunately, if you make a mistake it could kick you out of the virtual line for aid! Before you complain too loudly about the long line of questions on the form, understand that this is the government’s way of trying to divide equally the $200-plus billion in aid among throng (almost 15 million) college students applying for it. The questions provide admissions officers with the information they need to determine what is a fair share for whom.

Years ago, there was no FAFSA. If you wanted to apply for college financial aid, you paid a submission fee. In return for that, the government checked for errors and rendered assistance. But to encourage more to apply for aid, Congress shifted the cost to taxpayers of checking for errors and passing on the applications to the students’ colleges of choice. So the blank form was renamed the “Free Application for Federal Student Aid”. It’s free, but it’s like saying that you can pick up your tax forms at the post office “free” but don’t ask your mailman how to what question 9c on page 25 subsection 17 means.

In short, deadlines for student's wanting to go to college are right around the corner. Get your 2012 form starting January 1st, and contact ABC College Planning to help you fill out the form to get the most free money for college. Some proper planning early on, can save you thousands over your student's four years in college. 

Stop by ABC College Planning's website to get more information about upcoming financial aid workshops.