Navigating the college financial aid process

If your son or daughter is considering attending college next year, there is important information you need to know.

In order to obtain any form of financial aid, each student must complete something known as the Free Application for Federal Student Aid. A student must have a completed FAFSA every year they attend college or graduate school. The FAFSA helps determine how much and what type of aid a student is eligible for.

There are four types of financial aid: grants, scholarships, work study funds and student loans, and the FAFSA is required to determine eligibility for all of them. Even if a student is only planning to receive a merit-based scholarship, states and colleges use the FAFSA information in calculating a student’s total financial aid offer. The FAFSA form uses the information you provide including your most recent tax return to calculate what is known as your Student Aid Index. The SAI is sent to up to 20 schools the student selects during the application process. Schools then use this number to calculate how much financial aid to offer a student.

This year the FAFSA application and the process for completing it have been revised and simplified, according to the federal government, as required by the FAFSA Simplification Act of 2022. The act was designed to make the form and the experience more accessible and user friendly.

As an example the number of questions was reduced from the prior FAFSA from 108 to 36. The questions also are designed to be more aligned with your tax return to make the income questions easier to understand and answer. Also, there is a two-step process by which the student initiates the application in the role of student, and then the student must invite the parent to complete his/her process in the role of parent.

Before you sit down to complete the FAFSA, you will want to have the following information handy: a copy of your 2022 tax return, your household size and the number enrolled in college, and your Social Security number and that of your student. You also need to create what is known as a digital signature for the student and parent.

Although the FAFSA is designed to be a simpler and easier tool for students and families, its launch was delayed as a result of the changes to the application process. The FAFSA is currently in what is known as a soft launch, meaning it is in the testing phase to make sure it is working correctly. The form is available for short periods of time while site performance is monitored, and things may be updated in the coming weeks to provide the user with a better experience.

There are videos available that explain the process and how to complete the application. There also is a chat feature where commonly asked questions can be answered while you complete the application. Don’t wait too long to complete the FAFSA. Many colleges have deadlines for financial aid, the earliest of which is typically March 1.

Visit www.studentaid.gov/h/apply-for-aid/fafsa.