The Free Application for Federal Student Aid (FAFSA) is an application that opens doors for college students to receive various types of financial aid, such as grants, work-study programs, and federal student loans. However, many borrowers are confused about the FAFSA, which, according to a new study, could potentially be missing from receiving federal aid.
In fact, about 85% of students said they were not aware that the FAFSA determined their eligibility for more aid than just federal student loans, Study From Student Loan Hero met. Partly because of these misconceptions and a lack of understanding of how the program works, 20% of undergraduates said they have no plans to complete the FAFSA application this year.
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Key things to know about your FAFSA application
When it comes to the FAFSA, there are misunderstandings about how the application process works and what to do once assistance has been determined. Here are some things to keep in mind:
accept the right amount
According to the study, about 43% of students thought they had to accept the full student loan amount after filling out their FAFSA application. However, this is not the case. After knowing what they qualify for, students can choose which programs they want to enroll in or which grants they want to take. They can also choose the amount of student loan that they want to accept.
Some grants available through the FAFSA are on a first-come, first-served basis, so applying early gives students an edge over the competition. The study showed that 41% of students did not know that filing their FAFSA application early would help them receive more financial aid.
To ensure that they receive as much funding as possible, applicants should submit their FAFSA form as close to the opening deadline as possible.
If you have filed your FAFSA but have not received adequate financial aid, you may consider taking out a private student loan. Can the student Visit Credible to Compare Multiple Lenders at Once And choose the one with the best rate for them.
how to pay for college education
According to the study, 27% of the respondents said they believed that the main goal of the FAFSA was to provide assistance to students under a fixed income. However, this is only part of its purpose. for example, Any student in an eligible program Unsubsidized federal students may qualify for loans, which generally have lower interest rates than private student loans.
The study showed that another FAFSA hurdle was that 42% of students thought the application was difficult to complete. However, this is not the case.
To complete the FAFSA, students must have access to personal information such as their Social Security number, income tax return and tax information – which can be entered automatically using the IRS data retrieval tool. From there, their expected family contribution for that school year will be determined and their support packages provided. All students should apply to find out how much aid they are eligible for each year before the FAFSA October 1 deadline.
In determining its financial aid package, the FAFSA will consider factors such as dependency status, child support payments and other financial information. It will ask for items such as a driver’s license, bank statements and property information to approve funding.
Students can also look at private scholarship options to pay for their tuition or contact their school’s financial aid office to discuss their options.
After determining their eligibility for federal aid, students who need more money may consider taking out a private student loan. With today’s low interest rates, they can save on their monthly payments. Get in touch with a trusted student loan specialist to talk to And get all your questions answered.
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