Financial aid can be a great way to help fund your child’s college education. But what steps do you need to take in order to determine your child’s financial aid eligibility? To get the most out of the financial aid process, it’s important that you understand how and when to apply for financial aid and the types of financial aid available. Let’s break down everything you need to know about financial aid requirements.
When To Apply For Financial Aid
The best time to start thinking about financial aid is during your child’s junior year in high school. This will give you plenty of time to gather all the necessary documents, research your options, and create a plan for applying for financial aid. It’s also the best time to make sure you child has formulated a list of schools and potential major he/she is planning to pursue. In addition, this gives your student ample time to complete any standardized tests necessary for their application.
Your student should begin researching colleges and universities as early as possible so that he or she can find out which institutions offer the best combination of cost and quality. Many schools require students to file a Free Application for Federal Student Aid (FAFSA) by April 1st of their senior year in order to be considered for federal student loans and other forms of federal assistance. You can file the FAFSA as early as October 1, and it is highly recommended that you do so. The earlier you file, the better chance you’ll receive aid you are likely eligible for by schools that offer merit aid. If a school requires additional documentation or has its own application process, then make sure you also meet those deadlines.
What do I need to gather?
To complete the FAFSA, you’ll need the following information:
- Social Security number (or Alien Registration Number, if not a U.S. citizen)
- Federal income tax returns, W-2s, and other records of money earned for the “prior, prior year.” (aka – if you’re completing the FAFSA for the 2023-2024 school year, you’ll need the 2021 tax return).
- Bank statements and records of investments (this does not include qualified retirement accounts or home equity, though.)
- Records of untaxed income (if applicable)
- Your Federal Student Aid ID (FSA ID), which is used to sign the FAFSA electronically.
Note that the student and one parent should complete the FAFSA. Both the student and spouse should provide financial information if the student is married. If you need any help completing the FAFSA, a step by step guide can be found here.
What about the CSS Profile?
“Selective colleges and universities use the CSS Profile as an additional financial aid application to determine a student’s eligibility for non-federal aid including scholarships, grants, and work-study programs. Unlike the FAFSA, the CSS Profile typically asks for more in-depth information about the student’s and their family’s finances, including assets, liabilities, and other sources of income.
Private institutions and colleges with large endowments often use the CSS Profile to distribute their own funds. It’s important to note that not all colleges require the CSS Profile and the requirements and deadlines vary. A free resource you can use to determine if your school will require the CSS Profile or not is www.collegedata.com.
Types Of Financial Aid
When it comes time to apply for financial aid, there are several different types available. The most common include grants, scholarships, work-study programs, and loans. For a great resource and more detail – check out this prior post. The award of grants typically considers need and they don’t require repayment. Merit usually determines scholarship awards, which also don’t require repayment. Work-study programs offer students part-time jobs on campus. After graduation or when enrollment drops below half-time, students must repay loans with interest. It is important to research all these different types of funding sources before deciding which one is right for you.
Conclusion
There’s much to unpack when it comes to understanding everything you need to know for financial aid requirements. This is a great place to start learning – but it’s worth checking out my webinar or booking a call to learn more. Maximize your knowledge while minimizing your expenses!
