It’s January and as you know FAFSA season is upon us.  You may question whether or not you should file the form if you think you may not qualify for free money from the government.  So should you?  Absolutely!  But don’t just take my word for it, here is an article that outlines the top reasons that every family should apply for financial aid.

One big reason every student should complete a FAFSA application is to qualify for the Stafford Direct Loan.  This loan is a government loan that a student can receive in his or her own name at a fixed interest rate without a co-signer.  Financial need is not a factor in receiving this loan, however whether or not a student receives a subsidized portion (meaning it’s not accruing interest until the student graduates or falls below half-time status) is based on the family’s finances.  Another benefit to filing the FAFSA?  If you are planning to take a parent PLUS (Parent Loan for Undergraduate Student) loan, your student will need to have filed the FAFSA.

It’s important to file the FAFSA because a student’s financial need can vary from year to year.  For instance, let’s say you filed the FAFSA last year for your student and their EFC (expected family contribution) came back at $30,000.  If your student was attending one of our 4-year public colleges in the state of New Hampshire he or she would not have a financial need as they cost less than that amount (although he or she could have received a scholarship based completely on merit).  But now let’s say that you have 2 children in college for the 2012-2013 academic year.  You would file a FAFSA for each of your children and you would find that the EFC drops roughly by 50% (it will vary based on how much each of your children earned from working and what they have in assets).  For easy numbers, let’s say that each of your children has an EFC of $15,000.  In this case, they may receive some financial aid based on need from their college if this number is less than the school’s yearly cost.  You never know, and it’s definitely worth it to find out.  Any free money, no matter what amount, is good money!

Want some help filing your FAFSA?  Call the Center for College Planning at 888.7.GRADUATE ext. 119 to schedule your FREE 60 minute FAFSA appointment today.

Be financial aid savvy,
Val