Critical College Financial-Aid Deadlines Approach

Families must file FAFSA to claim share of $50 billion in federal aid for college

Critical College Financial-Aid Deadlines Approach

INDIANAPOLIS—Congress recently approved a $1.3-billion increase in funding for financial-aid programs to help college students. To qualify for this federal assistance, as well as for many scholarships and grants offered by state governments and individual colleges and universities, students and their parents must complete the Free Application for Federal Student Aid (FAFSA).

USA Funds^®, the nation's largest guarantor of federal education loans, recommends families that are sending children to college during the 2001–2002 academic year complete the FAFSA as soon as possible to ensure they qualify for financial aid.

"Completing the FAFSA is one of the most important steps families can take in preparation for college," said Carl C. Dalstrom, president and CEO of USA Funds. "Families also should be aware of any deadlines set by their state scholarship agency or college for filing the FAFSA," added Dalstrom, who is a former college financial-aid administrator.

The federal government annually supplies more than $50 billion in federal financial aid; state governments, colleges, and other organizations supply an additional $20 billion in annual student aid. The distribution of much of this financial aid is based on information supplied on the FAFSA.

The application collects information on a family's income, assets, and the student's college-enrollment plans. A federal formula is applied to determine the amount the family is expected to contribute toward the cost of the student's education. Colleges selected by the student compare the family's expected contribution against their costs of attendance to determine the student's financial need. The colleges then tailor aid packages, which typically include grants, loans, and work-study, to meet the student's financial need.

USA Funds offers the following advice for families in completing the FAFSA:

The quickest and most accurate way to file the FAFSA is over the Internet using the U.S. Department of Education's "FAFSA on the Web" at the following address: www.fafsa.ed.gov. Alternatively, paper applications are available from many high-school guidance offices, public libraries, and college financial-aid offices.
Students and parents who need help in completing the form have several options. High-school guidance and college financial-aid offices are important sources of information. Many state financial-aid associations sponsor programs to help students and parents complete the FAFSA. In addition, the U.S. Department of Education offers a toll-free telephone resource, (800) 4-FED-AID (800-433-3243), where questions about the FAFSA, and financial aid in general, are answered.
Completing the FAFSA is easier if students and parents already have completed their federal income-tax returns for 2000; however, families are not required to have submitted their tax returns before filing the FAFSA. Because many state and college deadlines are earlier, families should not wait until after the April 16 federal income-tax-filing deadline to submit the FAFSA.
As the name implies, there is no charge for filing the Free Application for Federal Student Aid. Some firms offer to prepare the FAFSA for families for a fee. Families considering these services should be aware of the significant information and assistance that is available free of charge to help them in completing the FAFSA.

"Tens of billions of dollars of financial aid are available from federal, state, and private sources to make college possible for every qualified student, regardless of the student's economic means," Dalstrom notes. "Completing the FAFSA is a key step to opening the doors to higher education."