The FAFSA:
2. Next, complete the FAFSA online at: www.fafsa.gov. Click the green button that says: Start a New FAFSA and follow the directions. Look to the right margin on each page for helpful tips as you go.
If you are considering more than one college, list each school's code on your application. If you need to make changes to your FAFSA later, you can file a correction (until September 24th). After your application is submitted, you will receive a summary report that lists something called the EFC (Expected Family Contribution). The lower the number, the more aid you are likely to receive, although there is no way to really know until the school decides how much to award based on your need. Always complete the FAFSA, because some help is better than nothing!
3. The FAFSA is available online starting in January of each year. Completed FAFSAs are sent to the school(s) you are interested in attending. There, they are processed in the order they are received. So, the sooner you submit your FAFSA the better. Waiting can cause delays and you may not receive financial aid for the upcoming term/semester. Also, you may miss out on grant money if it has already been given all away.
While it is better to apply early, you can submit your FAFSA up until June 30th and still receive some federal aid. However, some states have earlier deadlines for wanting the FAFSA turned in. Check state deadlines here. So, go for the earliest deadline in order to get state financial aid.
When I made the decision to go back to school, it was in March. I didn't get any financial aid for Summer term, but I did get it starting in Fall term. So, if you have any inkling that you may want to go to college in the coming school year, go ahead and fill out the FAFSA in January. If you then decide not to go to school, it's OK -- you don't have to accept the aid. But if you do decide to go, you'll be glad you already filed! This goes for high school students, too. Remember to complete the FAFSA in January before you graduate from high school.
4. The FAFSA is based on financial information from your last federal taxes (IRS form 1040 or 1040EZ) or your parents' taxes, if you are a dependent. Your financial aid is then awarded for the upcoming school year. For example:
- Complete FAFSA in January 2013 -- using 2012 taxes -- for the Fall 2013 to Summer 2014 school year.
- Complete FAFSA in January 2014 -- using 2013 taxes -- for the Fall 2014 to Summer 2015 school year.
5. I always start my FAFSA in January, as soon as I have my taxes completed. You can wait to file your FAFSA until your taxes are submitted and processed by the IRS (but this could be April!), or you can complete your FAFSA using information on your tax forms -- or an estimate -- and then finalize your FAFSA later. Either way, FAFSA lets you import your tax information from the IRS after it has been processed.
6. A new FAFSA application must be completed every year you plan on attending school. You will use the same log in information and pin number each year.
Financial Aid Facts:
1. Your college will communicate with you about your financial aid either by mail, email, or through your online student account. Be sure you know how they plan on contacting you and then frequently check for any updates. Once you are offered financial aid, you will need to accept or decline it as soon as possible or you will lose it.
2. Your college may also require you to complete other paperwork before awarding financial aid, especially if it is your first time. This may include a verification worksheet to help them further evaluate your financial need, such as: your income, assets, dependents you care for, whether you receive food stamps, etc.
3. Financial Aid may include grants and scholarships (which don't have to be paid back) and loans (borrowed money which has to be paid back, with interest). By completing the FAFSA, you will be applying for federal aid, such as the Federal Pell Grant, and Stafford Loans, such as the Federal Subsidized Direct Loans and Federal Unsubsidized Direct Loans, and Perkins Loans.
4. Financial Aid is based on whether you are attending part-time or full-time. To keep your financial aid you must enroll in the number of credits required. If you decide to go part-time instead of full-time, your aid will be decreased. Notify the school's financial aid office of any changes so they can increase or decrease your aid accordingly. If you are enrolled less than part-time, you may not be eligible for financial aid, but check with your school.
Financial aid is divided amongst each term/semester. If you are going to school year-round, you may find you have less aid available for summer term, so plan accordingly.
Example #1:
You are awarded a Pell Grant for $3,295.
Fall semester they disburse $1,236.
Spring semester they disburse $1,235.
Summer semester they disburse $824.
Example #2:
You are awarded a State Grant of $2,000.Fall semester they disburse $1,000.
Spring semester they disburse $1,000.
Summer semester they disburse $0.
5. If it is your first time receiving aid, there will be a required waiting period (7-30 days) before funds are disbursed. This can be a little tricky if you need money to buy books, etc.
Federal Loans:
1. If you are awarded any federal loans, you can accept or decline them. If you accept them, you can choose to borrow the entire amount or you can borrow less. Only take what you will need, as borrowing more will put you into greater debt. You can also change the amount you borrow (up to the awarded amount) each term/semester. If you accept the whole amount one term and then decide you don't need as much later, you can borrow less the next term/semester. You will have to file a change request with your financial aid office at school.
2. In order to receive student loans, you have to complete a one-time Financial Awareness Counseling and Entrance Counseling online to help you better understand borrowing and interest. Once completed, your school is notified. Go here: https://studentloans.gov/myDirectLoan/index.action. You will then sign an Electronic Master Promissory Note -- a legal contract. If you transfer colleges later, you will have to sign another Master Promissory Note and have your Entrance Counseling report sent to the new school. Loans can be combined between more than one school.
3. Once you accept a federal loan, your account will be assigned to a federal loan service. They will contact you by mail and/or email. You will be able to create an account online to manage your loan, make payments, and check your balance and interest.
4. Be aware that Federal Unsubsidized Direct Loans offer more money to borrow, but also at a much higher interest rate. Plus, the interest starts accruing right away -- while you're still in school. Federal Subsidized Direct Loans have lower interest rates and the federal government pays the interest while you're in school. However, they offer less money to borrow.
5. You can always pay money towards your loans or accruing interest while you are in school, if you are in a position to do so. Otherwise, you have to start paying on your loans 6 months after you graduate, stop school, or drop below part-time enrollment. It is possible to defer or postpone loan payments in some circumstances, but the interest continues to build. In the end... you will have to pay your loans back, even if you don't finish school or can't find a job. However, some loans may be forgiven if you work in certain public sector professions.
For more information about federal loans: http://studentaid.ed.gov/
6. Loans can also be borrowed from financial institutions, such as U.S. Bank, Bank of America, Discover, and others. Just be sure to compare interest rates, lending terms, etc. Make sure you go with a reliable, well established company. Do a search online and see if there have been any complaints about the lender.
Scholarships & Grants:
1. Scholarships are based on financial need or merit. Scholarships are available through your college or other organizations. New ones become available year-round and the deadlines vary. So, keep watch for new ones!
2. To apply, you may have to write an essay, submit transcripts, financial information, or letters of recommendations. They may require you enroll part-time or full-time. Some awards are limited to students attending a four year school or a state college rather than a private college. Some require you to have completed the FAFSA.
3. There are several sites online to help you search for scholarships. Some of them are more helpful than others. Some are just fishing for your information. NEVER give out your social security number.
4. There are usually a lot of people applying for a single scholarship on a national level. If you look for local or smaller organizations, you may have less competition. Ask charitable or humanitarian organizations, like the Elks or Rotary. Also, check with your local credit union, grocery store, electric company, hospital, insurance agency, fast food chain, etc. Ask if your employer, parent's employer, or former employers offers scholarships.
4. You can also find scholarships for students going into particular majors. Other scholarships are designed specifically for high school graduates, adult students, women, veterans (and descendants of veterans), students with medical or physical conditions, foster children, certain ethnicities, and more.
5. Check with your college for scholarships provided by alumni, memorial scholarships, and other opportunities. To apply for federal and state grants, first complete the FAFSA and check with your school.
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Whew! Hopefully that gets you started and answers some of your questions. Let me know if you have any smart tips to add! 
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