For many families, the cost of college can be overwhelming. Between tuition, room and board, books, fees, and other expenses, higher education represents a significant financial commitment. Fortunately, financial aid can help make those costs more manageable.
The first step in determining eligibility for federal financial aid is completing the Free Application for Federal Student Aid (FAFSA). While the federal FAFSA deadline is June 30, many states and colleges have earlier deadlines, so it's important to verify the requirements for each school your student is considering.
Gather These Documents Before You Begin
Having the necessary information ready can make the application process much smoother. Before starting the FAFSA, gather:
- Federal income tax returns and W-2 forms
- Records of untaxed income, such as child support or interest income
- Information on assets, including savings and investment accounts
- Social Security numbers for the student and parents
How to Complete the FAFSA
Once you have your documents organized, follow these steps:
- Visit the FAFSA website.
- Create an FSA ID for both the student and a parent, if required.
- Complete all application questions carefully and accurately.
- List the colleges, universities, or technical schools your student may attend.
- Review the information and submit the application.
Although the federal deadline is June 30, families are often encouraged to file as early as possible. Some forms of financial aid, including certain grants and state-based programs, may be awarded on a first-come, first-served basis.
Next Steps
After submission, the Department of Education processes the FAFSA and shares the information with the schools you selected. The financial aid office at each institution will review the information and calculate potential aid based on several factors, including:
- The Cost of Attendance (COA) - estimates tuition, fees, housing, meal plans, books, supplies, and other educational expenses.
- Student Aid Index (SAI) - SAI is calculated using information about your family's income, assets, and financial circumstances. Schools use this figure when determining financial aid eligibility.
- The financial aid office will subtract the SAI from the COA to determine the amount of need-based financial aid your student needs and how much they may receive.
Once the review process is complete, your student will receive a financial aid offer outlining the assistance available from each institution.
You Can Make Corrections If Needed
If you discover an error after submitting the FAFSA, or if your family's financial circumstances change significantly, you may be able to update or correct your application. It's important to review all information carefully and respond promptly if additional documentation is requested.
Planning Beyond Financial Aid
Completing the FAFSA is an important step, but it's only one part of a larger college funding strategy. Understanding your options for savings, scholarships, financial aid, and long-term planning can help reduce financial stress and create greater confidence as your student prepares for college.
As families navigate the college planning process, working with a financial professional can help ensure educational goals remain aligned with broader financial priorities, including retirement, tax planning, and long-term wealth management.
The college years arrive sooner than many parents expect. Taking action now can help position your family for greater flexibility and opportunity in the years ahead.