Going Back to College as an Adult? What you should know about the FAFSA

Adults over the age of 40 who are going back to school or attending college for the first time should complete a FAFSA in order to determine what types of federal aid are available. There are a number of programs offered by the US Department of Education such as grants, scholarships, loans and work study. Even adults who are returning to school to finish professional degrees and may think they are able to afford to pay for college out of their pockets should reconsider and fill out a FAFSA. This is because it is very expensive to attend college, and there are fees and expenses involved beyond just the standard tuition costs. Books, supplies, equipment, laboratory fees, various membership fees and dues, required software programs, required health insurance, and many other expenses mean that it’s a wise idea to fill out a Free Application for Federal Student Aid.

Filling out a FAFSA will determine eligibility for a number of different programs. The most beneficial- grants, consist of monetary awards that never have to be repaid. There are usually a number of requirements in order to get the grants, and they may be available at many other places besides the school and the federal government: businesses, corporations, foundations, civic groups, charitable organizations, private individuals, and state and local government agencies also offer grants in some cases.

The same groups listed above may also provide scholarships. However, most scholarships available through schools or by filling out a FAFSA are generally for students who are under age 24. As a result, adult students should seek outside sources of scholarships for returning or mature students.

Even adults can qualify via the FAFSA for work study programs. This enables a student to work in a field relative to their degree path while being able to earn money to pay for educational costs. This is especially useful for adults that are returning to school with the intention of being retrained in a new field.

Finally, nearly everyone regardless of age can qualify via the FAFSA for federal loans to cover college expenses. Terms and interest rates are very favorable and allow even the busiest mature student the ability to fund their education and improve the lives of their families and communities.

FAFSA Worst Case Scenario- Unsubsidized Loans

If you’re in the process of filling out a FAFSA, you’re likely wondering what the possible results could be, and what the worst case scenario is. You should know right away that not everyone qualifies for all types of aid that are available by completing a Free Application for Federal Student Aid. The federal forms of educational funding provided by the US Department of Education are offered on a need-basis. This means that the more financial need you have, the more likely you will be to qualify for all types of aid.

The FAFSA seeks to determine eligibility for the following programs: federal work study, federal grants, scholarships, subsidized loans, and unsubsidized loans. Obviously, the most desirable of these forms of aid are grants, as this is money for college that never has to be repaid. Following closely behind grants is scholarships, which also provides money for school that never has to be paid back, but comes with some restrictions and obligations.

Work study programs are often preferred over federal loans. Work study awards are provided once per year. A student is able to “work off” up to the full amount of the award by performing services in a field similar to the student’s field of study, or in a job that serves the public good if no degree-specific jobs are available. However, making the commitment to work is difficult for many students. Nevertheless, students that do take advantage of this program are able to get money for school and valuable training at the same time.

Subsidized loans are available to students with financial need. Interest on these loans is not accrued while the student is still enrolled in school or is in a grace or forbearance period. Once the student graduates or stops attending, loan payments will be due and interest will begin to accrue after a 6 month grace period. However, interest rates are very low on this type of federal loan.

The worst case scenario is that you’ll only qualify for unsubsidized loans. These loans also do not become payable until graduation or when the student stops attending, although interest does begin to accrue at the time the loan is first disbursed. Unsubsidized loans are still a valuable way to obtain money for college. These loans can help prevent a student from having to participate in work study or work a full time job while attending school. And being that the interest rate is extremely low, the cost of the money borrowed is very reasonable. So essentially, the worst case scenario when you fill out a FAFSA is that you will be provided with an excellent, low-cost loan that’s completely managed for you. It’s still a pretty good deal. Unless you’d like to pay for college out of your own pocket, that is.

Understanding the FAFSA: I don’t want to give or can’t get my parent’s information!

When filling out the FAFSA, many students are surprised to find that they must enter information regarding their parent’s financial status. This includes income, capital gains, assets, and tax information. In fact, the FAFSA often requires that supporting documentation to validate parental income be submitted with the application. But not all students or parents are comfortable providing this information, and some of the reason for this may be because they misunderstand or simply don’t know how the information is used or why it is needed.

The FAFSA or Free Application for Federal Student Aid seeks to make determinations for all types of federal educational funding. Information requested on the form is used as part of a formula developed by congress to find out how much aid a student can receive. However, in the eyes of the federal government, parents should be involved in providing funding for their children. This is not to say that if the parents can afford it that the government won’t help. Rather, it’s merely supporting the federal plan that a person’s education costs be shared by the government, and the family.

For this reason, information regarding your parent’s income is used to determine how much your Expected Family Contribution should be. Because federal programs such as loans, grants, work study and scholarships are awarded based upon financial need, students from low income families will receive greater aid than those from more fortunate families.

But sometimes, students have been on their own for years already, or they are estranged from their parents and cannot get the information. Additionally, some parents may simply refuse to provide such details. In these cases, students are strongly encouraged to contact financial aid officials at their school, as there are exceptions that can be made, including allowing a dependent student to be listed as independent in the event that they cannot obtain their parent’s information, or if the student is genuinely under an independent status even though they are under the age of 24.

Can I get Help Filling out a FAFSA?

The FAFSA is a comprehensive form used to determine student’s eligibility for certain types of federal aid. For freshman students especially, some of the information on the application may be completely foreign. For this reason, some students may not be able to simply fill out the FAFSA online, and instead may need assistance in order to complete the form accurately.

Can Parents fill out a FAFSA for Direct Plus Loans?

A FAFSA is not required for parents who wish to make use of federal funding to pay for their child’s education. Instead, a parent will need to contact school financial aid officials that participate in the Federal Direct Student Loan Program. Under this program, parents can be offered low interest rate loans to fund their child’s tuition, books, and other educational expenses at more than 4000 colleges and universities nationwide. Applications should be made directly with the school.

In order for a parent to qualify for a Direct Plus loan, the must meet certain eligibility criteria. First, the child whose education they wish to fund must be a full biological or legally adopted dependent. The student must attend classes at least half-time. In most cases, a student must be under the age of 24, have no dependents of their own, and not be married.

Parents must be able to demonstrate creditworthiness in order to apply for a Direct Plus Loan. Because of this, parents are strongly encouraged to review their credit reports prior to applying for a loan. Individuals who do not have sufficient credit may still be able to get a Direct Plus loan if they can provide suitable cosigner or guarantor. In cases where a cosigner or guarantor is not possible, a parent may still be able to get a Direct Plus loan if they can prove that their adverse credit rating was as a result of unusual circumstances that have since been resolved.

While parents do not need to fill out a FAFSA in order to apply, they should understand that loan amounts cannot exceed the total educational expenses as would normally be determined by a FAFSA form. Loan amounts are also reduced by the amount of other aid a student receives, such as grants and scholarships.

The FAFSA: What Happens if I don’t pay a Loan Back?

When you fill out a Free Application for Federal Student Aid, or FAFSA, you’re required to submit an MPN every time you borrow new funds or change schools. While few students consider what an MPN consists of, it’s vital to understand exactly what it is that you’re signing when you fill out this document.

An MPN is a Master Promissory Note. To summarize very briefly, the MPN is a legally binding document where your signature guarantees, or promises, to repay finds lent to you under the FAFSA or the Federal Direct Student Loan Program. In the event that a student defaults or refuses to pay back student loans when they are due, the MPN will be used against the student in a court of law.

When you fail to make timely payments on your student loans, your account will begin to show on credit bureaus as past due. Each stage of delinquency hurts your credit more. By the time your bill is 90, 120, or 150 days past due, chances are high that your account will be sold to outside collection agencies.

Collection agencies are not held to the strict collections practices standards set forth by the Fair Debt Collections Practices Act. They have much more leeway when collecting, and can call you repeatedly every day for years. They may aggressively attempt to collect the debt by contacting you via email, letters, and phone calls, and they may contact your employer, your neighbors, and other people that you associate with. This can become extremely embarrassing, especially considering that information you provided on your FAFSA may be used to make these contacts.

Unlike most other types of debt, student loans cannot usually be included in a bankruptcy. This means that regardless of your financial situation, you’re going to be forced to pay these loans back eventually. Letting them go delinquent will only result in severe damage to your credit standing and the accumulations of fees and interest. It’s much cheaper to pay student loans when they are due- not when they are past due.

Additionally, if you have student loans that are past due, you will not be able to use the FAFSA at any other school in the country to obtain student aid until you have made suitable arrangements to pay your debts back. This can prevent you from finishing your education, and can have serious long term credit ramifications; including the inability to purchase a vehicle or a home.

Nearly all student loans are offered at very low rates of interest, and with low payment amounts. If you find yourself struggling, contact your school’s financial aid office and advise them that you need help. Forbearances or reprieves in payment may be available until you are able to get back on track.

How Much Money for College can the FAFSA Provide?

If you qualify for all forms of federal aid available on the FAFSA, chances are that you can receive a lot of money for college. While some of this will likely come in the form of low interest loans, a great deal of it can also come from grants and scholarships, which never have to be repaid. Additionally, work study awards can be earned in addition to other forms of aid, thereby increasing the overall amount of money you can receive by filling out a FAFSA.

Each part of the FAFSA makes different determinations concerning what type of aid you can receive. For undergrad students, most funds will come in the form of unsubsidized and subsidized loans. For each academic year, total loan amounts will depend on student status: dependent students can get up to $3500 in subsidized loans and $2000 in unsubsidized loans. Independent students can be loaned up to $3500 in subsidized loans and $6000 in unsubsidized loans.

Students using the FAFSA can also get Perkins loans up to $5500 per year. The Perkins loans features a low 5% rate of interest and is managed by the school- not the US Department of Education.

There are several grants available to students by filling out a FAFSA:

Pell Grant: Can be awarded up to $5550. In some cases, students can be awarded this twice per year.

Federal Supplemental Education Opportunity Grant: Usually awarded in conjunction with the Pell Grant, the FSEOG maximum award is $4000.

Academic Competitiveness Grants: Usually awarded through the school, officials will use information on your FAFSA to make ACG award determinations, up to $1300.

The Teacher Assistance for College and Higher Education Grant, awarded up to $4000, is for students that make a commitment to teach for 4-5 years in an elementary or secondary school that services children from low income families.

Scholarships available by filling out a FAFSA vary wildly in type and amount, but in general range from $500 to $3500 and more.

As you can see, it’s easy to get all the money you need- and then some- simply by filling out a FAFSA.

Understanding the FAFSA: Can it be used to get funds to attend international schools?

The Free Application for Federal Student Aid or FAFSA is used frequently by American students wishing to study abroad. While there may be many students and taxpayers alike that decry this federal policy, it makes perfect sense in the eyes of the US Department of Education, who is the managing authority when it comes to the FAFSA. The USDE provides funds for students with financial need to use for educational purposes. The goal is to create an American public that is highly educated, so in that sense the USDE isn’t concerned about where that education is obtained. The general idea is that most US students who study abroad are not likely to move there permanently, and therefore will eventually bring their higher level of education back to the United States.

Those that oppose students using the FAFSA to receive federal aid state that the money provided by the federal government should only be given to American schools, thereby boosting the economy and reserving federal funds for domestic uses only. However, this logic is flawed when the high number of international students studying in this country is considered. To clarify, if we should not use federal funds to allow US students to attend foreign schools, what if every foreign country adopted this same policy? The answer is that the US would have thousands less students every year, as international students make up a significant percentage of US college populations.

If you wish to study abroad, you will be required by most schools to fill out a FAFSA if you are American. The best practice is to fill out the FAFSA online, then wait 48 hours for the SAR or Student Aid Report. When you receive this report, you should contact FAFSA administration officials and ask for the full report- not just the summary. The full report and all FAFSA information should then be mailed to the international schools you wish to attend. From there, school officials will instruct you as to their individual policies.

Don’t forget- international schools accept thousands of American students each year, so most will be very familiar with the FAFSA and the process to apply for federal student aid.

Filling out the FAFSA: How Long does it Really Take?

Depending on which student you asked, you’d probably get wildly differing answers when it comes to how long it takes to fill out a FAFSA. Some students are able to complete a FAFSA in 15 to 20 minutes, while others require several hours. The reason for these startling time differences is because the FAFSA is different for everyone. The form is the same from school to school and even from year to year, but not every question applies to every student, and not all students are seeking the same level of aid.

If you are pressed for time, there are a number of things you can do to speed up the FAFSA process. First, you should read the entire application from front to back, taking notes of information and documents that you will need to submit the FASA correctly. Only after you have gathered all of this information should you begin to actually fill out the Free Application for Federal Student Aid. This is because mistakes or omissions on a FAFSA can be costly, resulting in a rejection of aid or a delay in processing. Essentially, delays in processing means more time spent dealing with the FAFSA.

In general, students who fill out the FAFSA online are able to complete the process much more quickly than students who do not. Completing the FAFSA with all necessary documents and information at hand can often mean only spending 20 minutes or so on the form. Students who have never filled out a FAFSA and are totally unprepared can expect to spend an hour or two to accurately complete the form. In fact, when time spent gathering information and documents is added together, the FAFSA may take some students days or even weeks.

The reality of the situation is that filling out a FAFSA takes as long as you make it. If you’re not too busy and don’t have much else going on, then you can relax and get around to the FAFSA process whenever you feel like it. But if you’re like most students working against FSEOG deadlines and the many pressures of a full school load, you’ll want to be as efficient as possible and approach the FAFSA from a prepared and diligent angle.

Is it really necessary to fill out a new FAFSA every year?

Many students dread the yearly filing of the Free Application for Federal Student Aid, or FAFSA. For some students, nothing changes from year to year, so the form really becomes more of an annoyance than anything. Other students may simply forget to fill out a new FAFSA, which can result in serious educational funding complications. But in both cases, filling out the FAFSA is not only required in order to be awarded federal aid, it’s also usually quite fast and can be done entirely online.

The United States Department of Education asks for student’s financial information each year in order to re-evaluate a student’s financial need. So even if nothing has changed for a student, filling out the FAFSA is the only way to be processed for loans, grants, work study, or scholarships. For many programs, award money is only disbursed once per year, which means the USDE needs applications in order to determine how much money to budget for that year.

But even if a student thinks that nothing has changed for them financially, they might not be seeing the whole picture. Students who have changed the number of hours they work or their total class load may be eligible for additional federal aid. Additionally, students who have changed their major or concentration, or students at different stages of education may be eligible now for aid that was not available to them previously.

Students who experience the death of a parent may not be thinking about how that relates to the FAFSA, but the fact of the matter is that this information is vital for award determinations. For those students under age 24, financial need is always assessed with the “expected family contribution” in mind- even if there is no direct contribution made. Therefore, when a student loses a parent, it’s vital to update this information on the FAFSA.

Ultimately, students that are well prepared can complete a FAFSA online in a matter of minutes. It’s a small price to pay once each year for the generous amount of aid offered by the federal government.

Can Foreign Students use the FAFSA?

The short answer to this question is yes; international students can use the FAFSA. There is no special FAFSA for International Students. However, there are a number of exceptions and things to consider, and not every international student who applies will receive aid. Because the FAFSA is used to award federal educational aid, most programs available on the FAFSA are only awarded to US Citizens or permanent residents. In most cases, if you don’t have a social security number, you can’t use the FAFSA or Free Application for Federal Student Aid.

International students may not qualify for federal aid, but there are other forms of aid available and in most instances the FAFSA is the best way to apply for them. Colleges, trade schools, universities, and other schools sometimes have “in house” grants, scholarships, and work study programs that are not federally funded. In many cases, international students can qualify for these forms of financial aid. But in order to apply, a FAFSA should still be used. A foreign student can go about this one of two ways:

1.) Obtain a social security number. The federal FAFSA processing center will not process any submitted FAFSA’s that do not include a valid social security number. Foreign students that have SSN’s will probably still not be eligible for aid, but the school can use the information on the FAFSA to make in house determinations and awards

2.) Find a school that processes applications “in-house.” Some schools will have an international student fill out a FAFSA, but not send the completed FAFSA to the federal processing center. Instead, the form is processed by school officials whose specialty it is to award foreign students with various types of aid. Filling out the form does not automatically make you eligible for aid.

Because the reality is that most international students will have a difficult time finding educational aid, it’s important for foreign students to look at other, non-governmental resources. Many private financial institutions in the US will make loans to international students if the student has a co-signer who is a US citizen with good credit. Foreign students are also urged to contact businesses, associations, charitable organizations, and private individuals who award scholarships and grants for academic excellence, ethnic or religious affiliation, foreign language proficiency, and many other considerations.

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The History of the FAFSA

The history of the FAFSA is directly tied to that of the Federal Direct Loan Program, or FDLP. The FAFSA form that college students fill out today has evolved from decades of public policy and federal lending requirements that sought to determine which students had the most financial need, and how federal funds could best be applied for them. In general, the FAFSA is used to apply for all types of federal aid, and most often does not qualify a student for state, private, charitable, or other forms of educational assistance.

Many students remember the FFEL program, or Federal Family Education Loan program. This program utilized the FAFSA, but the questions, content, and amount of aid that was available on the form at the time was quite different from the FAFSA of today. In fact, due to abuses, waste, and mismanagement by lenders and school officials of the FFEL program, the federal government stepped in, obliterated the program and instituted the Federal Direct Loan Program. This program is now the sole source of federal education aid, although students who have existing FFEL loans can continue to pay them as agreed, or consolidate them into a Direct Consolidation loan.

With the eradication of the FFEL came the overhauling of the FAFSA. Redundancies were eliminated, the form was streamlined, and the application became more comprehensive in the amount of aid that a student could apply for all in one place. The form’s questions were also re-developed to more fairly establish financial need and distribute federal aid accordingly.

Because the Federal Direct Loan Program has aggressive goals that stretch into the next decade, it’s likely that that FAFSA will continue to be the sole application method for all forms of federal educational aid for some time to come.

Filling out the FAFSA: What Happens if I “alter the truth”?

The FAFSA is not a joking matter. This questionnaire to determine eligibility for all types of federal aid is comprehensive and asks a lot of probing questions that some people might find personal. However, federal student aid is awarded to students with financial need, so the information is required in order to fairly determine who should receive what kind of aid. If students lie or distort the truth they are really doing a great disservice to other, less fortunate students and to the country’s education system in general. Don’t forget that it is taxpayer dollars that fund the federal student aid program in the United States, so students that manipulate the system are essentially stealing from everyone around them.

Besides, unless you are a financial genius, how do you know how your answers will impact your financial aid award? If you’re that smart, chances are that you probably don’t need to fill out a FAFSA anyway. Distorting the truth can in many cases result in a student receiving less aid than if they had simply been honest. Answer the questions truthfully in order to find out what type of aid you are eligible for. The worst case scenario is that you’ll only be entitled to unsubsidized loans. However, even unsubsidized loans are a great resource- requiring no payments while you are enrolled in school, and featuring low interest rates.

If moral issues are not enough to convince you not to alter the truth on the FAFSA, then it might help you to know that your information is cross-checked in a number of ways. First, financial aid officials might use your credit report to verify what you reported on the FAFSA. If the numbers don’t match, expect resistance. Second, tax officials, education officials, school officials, public records, credit companies, unemployment bureaus, and many other organizations all consolidate and share their information. This makes it fairly easy to spot a student who is lying on their FAFSA. If it is determined that you falsified information on a FAFSA, you could be fined, imprisoned, or both. Not to mention, you’ll most likely never be eligible for any type of federal aid again.

It’s not worth it. Tell the truth. Get the aid you require and deserve- fill the FAFSA out correctly and truthfully.

Is the FAFSA used by “untraditional schools”?

The FAFSA, or Free Application for Federal Student Aid, is used by all schools that participate in the federal direct loan program. The United States currently has more than 4,000 schools that use the FAFSA. The web is loaded with resources to determine which schools use it and which don’t.

The FAFSA can be used by practically any type of school. This includes state colleges and universities, community colleges, trade schools, technical schools, art schools, health services schools, automotive education centers, online colleges and universities, and many other types of schools and programs. In fact, there are even equestrian/farrier schools and massage therapy schools that now participate in the federal direct loan program, and therefore will also use a FAFSA. There are comprehensive lists available both on the Department of Education' web site and on tons of web-related sources, but these are all sort of redundant. Chances are great that the school you will be applying to uses the FAFSA to determine eligibility for certain types of federal student aid.

The easiest and fastest way to find out is to simply go to the website of the school/s you wish to attend. Click on each school’s financial aid link, and you’ll quickly discover whether that school uses the FAFSA or not. Remember that federal student aid is only available by filling out the universal Free Application for Federal Student Aid. Besides, chances are that if you’re looking to fill out a FAFSA, you wouldn’t want to attend the schools that don’t utilize this form anyway.

Filling out the FAFSA: The Differences between Loan Types

Being a student is often the busiest time of a person’s life, and when FAFSA season arrives, it’s easy to find yourself preoccupied. You might stare at that FAFSA document and not even know what type of loan you need to apply for this year. If you require a little help to clear the cobwebs and figure out what direction to go in, the following are the basic definitions of the major loan types available by filling out the FAFSA, or Free Application for Federal Student Aid. All loans under this program are referred to as direct loans, as they are part of the Federal Direct Student Loan Program.

Subsidized Direct Loans: These federal loans are granted to students with the most financial need- although a student may be awarded a combination of different loans. Subsidized loans are those where the interest is paid by the government while a student is enrolled at least half-time. Therefore, no interest accrues on these loans until the student has graduated or drops below half-time status. When the loan enters repayment, the interest rate will be very low- 4.5% for loans disbursed prior to June of 2011, and 3.4% for any loans obtained after that time.

Unsubsidized Direct loans: Students with less financial need will often be awarded unsubsidized loans. On this type of loan, interest accrues from the day the loan is issued. However, the rate is still low: only 6.8%. Students utilizing this type of loan are advised to pay at least the interest on the loan while they are still enrolled in school.

Direct Plus Loans: These loans are granted exclusively to parents who wish to pay for their children’s education but don’t have the immediate funding to do so. Loan amounts are equivalent to a student’s educational expenses, minus other forms of aid such as grants and scholarships.

Direct Consolidation Loans: For students that have attended multiple schools or have multiple loan servicers, this type of loan allows you to roll all loans into one federal loan at a low rate of 7.9%

Don’t forget that these are just loans- you can also apply for grants, scholarships, and work study by filling out a FAFSA.

College after 30: How the FAFSA Applies to You

Attending college at any age begins by filling out a FAFSA, or Free Application for Federal Student Aid. If you are over the age of 30, the primary difference for you versus any other student is that you’ll know right from the start that your student status is independent. You won’t be required to provide information on the FAFSA concerning your parent’s income, assets, or their education history. Instead, the FAFSA will utilize your income information alone to make award determinations.

For students 30 years or older, your status will always be independent, but there are some conditions where it might be important to report on the FAFSA that you are an “independent with dependents.” This would occur if you have children that depend on you for more than ½ of the cost of their care. It can also happen if you have dependents that live with you, such as children or dependent adult parents or grandparents.

In general, being an independent with dependents will result in more aid being awarded. However, if you are simply an independent, but have very low income, you may qualify for just as much aid. Regardless of your situation, the FAFSA will be used to determine all aid. Your income and asset information, education history, and dependent information will all be taken into account, and loans, grants, scholarships, and federal work study will all be awarded accordingly.

Many students over 30 prefer to take classes online. This does not pose any problem whatsoever. In most cases the FAFSA makes no distinction between traditional classes and online classes. As long as you are enrolled in an accredited school at least half-time, chances are that you can qualify for a great deal of aid.

Work Study and the FAFSA

The FAFSA not only allows you to apply for subsidized and unsubsidized loans, it also allows you to apply for the Federal Work Study Program. Under this program, students who demonstrate financial need can be awarded a federal work study program allotment. A student is permitted to work in a field relative to their studies and earn up to the amount of the award. The award amount and conditions are all determined by information provided by the student on the FAFSA.

Most federal work study awarded by the FAFSA allows a student to be networked into the work study system and apply for a job related to their field of study. When this is not possible, a student may be able to work in a related field, or in a position that serves the public good. By doing so, a student is able to earn money to pay for educational expenses, and gains valuable experience at the same time.

Students wishing to apply for the federal work study program must fill out the FAFSA as early in the year as possible. This is because the federal government only awards each school so much money each year for work study programs. When that money has all been allotted, there is no more available until the following year, and the application process stops. Even if this is the case when you are filling out a FAFSA, you may still be able to get the money you need to attend that year if you are awarded scholarships, grants, or loans.

Be certain when you fill out the FAFSA to ensure the program you are enrolling in is at least half-time, and that you have all documents required by the FAFSA to prove income and eligibility conditions.

The Hard Facts about Establishing Financial Need through the FAFSA

In order to qualify for any type of federal student aid, you must fill out a Free Application for Federal Student Aid, or FAFSA. All programs available on the FAFSA use financial need as a basis for awarding different types of aid. Many students question how financial aid is established. The following lists the general information that is used to determine how much “financial need” you have.

Independent students are usually judged according to their income. Full or part time jobs, baby sitting, gifts, investments, and all other sources of income must be reported. Because federal student aid seeks to help those that cannot help themselves, your income information is crucial to determining how much aid you need. Obviously, the less reportable income you have, the more financial need will be established on the FAFSA.

If you have scholarships coming in from private citizens, businesses, charitable organizations, or scholarship establishments, these amounts will be used to reduce the amount of federal student aid you might otherwise qualify for. Outside grants will also be applied as an offset on the FAFSA.

If you are a dependent student, then your parent’s income and assets will be used in conjunction with your own income (if any) to determine how much aid to award you. This is called the “expected family contribution.” Low income families and families that are on different types of federal or state aid, welfare, or other public assistance programs usually qualify for the most aid.

It might be tempting to “fudge the numbers” on the FAFSA in order to get more aid; but you shouldn’t do this. Federal aid officials will seek to verify the information provided to them using various resources, and the FAFSA will instruct you to provide documentation to support your position. In any case, almost everyone will qualify for subsidized or unsubsidized loans, making college within the reach of most Americans.