This is the first in a series of articles about the financial aid process.
Are you a senior in high school who is planning to attend college next year? If so, now is the time to complete your financial aid forms. The Free Application for Federal Student Aid (FAFSA) is the main form that is required by all colleges and universities--whether public or private. Since the California deadline for the FAFSA is March 2nd, the time is now. (Note: some colleges will want you to apply by February 15th). After you complete the FAFSA, you will receive an EFC (Expected Family Contribution)--this is the amount that the Federal government determines your family (student and parent) can afford to pay for college, and it's the figure colleges will use to determine what your 'need' is.
It is crucial that the ONLY website you use to access the FAFSA is the official one: www.fafsa.ed.gov. Commercial sites (anything with a .com or .net) will try to charge you for completing the form--so make sure you use the official site. The FAFSA asks questions of both you as well as your parents, since the vast majority of undergraduate students are considered dependent. These questions include income and savings information, most of which are based on your and your parents' tax forms and W-2s. Even if you and your parents have not yet completed your taxes, you should still fill out the FAFSA now, and estimate based on last year's tax information. Then, after you have completed your taxes, you can go back in and make corrections to the information in the FAFSA.
So, now you've completed your FAFSA and received an Expected Family Contribution (EFC)--what next? The difference between the EFC and the college's cost of attendence is considered your "need," and colleges have quite a bit of leeway in deciding how to meet that need and how much of it to meet.
For example, let's say you have an EFC of $10,000, which means that the Federal government says you and your parents can afford to put $10,000 toward your college education this year. If a college has a cost of attendance (tuition, room/board, books, expenses) of $30,000, then you have 'need' of $20,000. The college can determine how much of that need to meet and whether they will offer you grants/scholarships (do not have to be repaid) or loans. Most of the time, colleges will offer a combination of both. Your goal is to have the lowest out of pocket cost (EFC + Loans) possible.
Not all loans are created equal either, so the next article in the series will talk about the different types of student loans.
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