Image via WikipediaIt's that time of year again when dreaded FASFA forms have to be filled out. The form that strikes fear in first year college students parents. FASFA is the Free Application for Federal Student Aid. It's a form that must be filled out so your student can apply for financial aid. It's quite a large multi page form that can be filled out online. We have 3 college students in the house so 3 forms must be filled out.
At first it was a scary proposition to to enter your data concerning income, savings, and a variety of information at first. But we got through it and are receiving a helpful amount of money to help pay for college, now. We couldn't put 3 through college without it. This aid consists of grants paid to the school directly. It is not a loan, its a flat out grant. which is good because there will be no debt after graduation.
A lot of parents have mistaken preconceived notions about this process. Some of the misconceptions are:
1. I make too much money to qualify for financial aid. You shouldn't automatically assume that you won't qualify for need-based assistance. How much income you earn is only one part of the equation. What also matters is the price of a particular college. For example, some families that don't qualify for aid at moderately priced state schools may be in line for considerable help at pricey universities.
You can obtain an early assessment of whether your family might qualify for aid by using a free financial aid calculator. A calculator will produce an estimated Expected Family Contribution, which is what colleges would expect you to pay, at a minimum, for one year of school.
2. My home equity will kill my chances for aid. Most colleges won't care if you own a house and won't count home equity against you if you do. That's because the majority of schools rely on the federal aid application, the Free Application for Federal Student Aid (FAFSA), which doesn't ask parents if they own a home.
3. I have saved to much in my child's college fund. In reality, less than 4% of families are penalized for their savings. Even if you have state pre-paid college plans you don't have to worry because they won't be held against you.
4. Don't think filling out financial forms are a waste of time or your odds of receiving aid is low. You will receive nothing if you don't apply. If you try you may be pleasantly surprised.
The FAFSA will be available beginning Jan. 1 for the 2011-2012 school year. The application should not take long if you gather the necessary documents before you begin. You can find out what information you'll need to complete the FAFSA by checking out the FAFSA on the Web Worksheet.
Also, the FAFSA on the Web Application has undergone dramatic changes for 2011-12, so be prepared for a new look. The changes are positive and the FAFSA Worksheet for 2011-12 can be accessed by using the "Browse Help" button in the header area of the FAFSA.gov website.
You can find College Cost calculators at the College Board and at TuitionCoach.
Other posts related to College Finance:
Here are few videos to check out from US News & World Reports
