Who should complete a FAFSA application?  I get many of these type of questions from other parents.   The Free Application for Federal Student Aid or FAFSA is free in the sense that there is no cost to use it.  It is an aggregation of student and parent finances.  It measures the ability to pay for college.  Colleges use it for financial aid eligibility.  It can be a gateway to grants, loans and possibly scholarships.  Recall The Money Skinny™ mission is to save you time and money.  Let’s review things to consider in making the FAFSA application decision.  Also, school-specific FAFSA requirements.

FAFSA Application Timing

The 2018-2019 FAFSA will open October 1, 2017.  It is available online at fafsa.ed.gov.  For high school Seniors, the FAFSA is mixed with college early-action admittance.  A new FAFSA application is submitted every school year.  Each college student and his/her family decides if it is worthwhile to complete a FAFSA every year.

FAFSA Application Considerations

• Every detail of the student’s and parents’ financial life is included.  Income, assets, debts.  Even grandma’s 529 plan in Junior’s name.  Are you are willing to provide that?  Consider the security risks.
• Completing the FAFSA takes time. Weigh the likelihood of receiving aid against the effort invested.
• A FAFSA is required for a student to receive federal loans.
• Will your circumstances change during the year?  Perhaps you lose your job.  You can update a submitted FAFSA.  However, a new FAFSA can’t be started after the completion deadline.

Merit Scholarships

In addition, there’s another critical point about the FAFSA.  Some schools use the FAFSA as the gateway to all money – including merit scholarships.  Just a minute.  What does a merit scholarship have to do with your bank account?  Plenty, at some schools.

For Example

In my family, Child #2 went to college out-of-state at Big State University (BSU).  She received a merit scholarship without requiring a FAFSA.  Child #3 applied to a different out-of-state BSU.  He got a similar merit scholarship as Child #2.  However, Child #3 had to complete a FAFSA to actually receive the merit scholarship money at that BSU.  Not mentioned on the rah-rah leafy campus tour.  The student guide walked backwards extolling the virtues of the new rock-climbing wall.  Not a peep about scholarships.  Not on the BSU website either.  We assumed schools didn’t required a FAFSA for merit scholarships.  We were wrong.  Some do.

Understand Each School’s FAFSA Requirements

The Money Skinny™ best practice is to understand the FAFSA requirements for a specific school before investing time and money.  Then take a campus tour, send test results and apply for admittance.  Contact the admissions office for FAFSA requirements.  For example  – “Does BSU require a FAFSA to receive merit scholarships?” Know before you go.

• The 2018-2019 FAFSA will open October 1, 2017.
• Consider the pros and cons of completing the FAFSA application.
• Some schools use the FAFSA as the gateway to all money – including merit scholarships.
• Understand the FAFSA requirements for a specific school before investing time and money.