Does Doing FAFSA Early Make a Difference?
Navigate the FAFSA process effectively. Understand the impact of submission timing and prepare to maximize your financial aid opportunities.
The Free Application for Federal Student Aid (FAFSA) serves as the gateway to various forms of financial assistance for higher education. This includes federal grants, work-study programs, and low-interest federal student loans, alongside many state and institutional aid opportunities. The FAFSA collects financial information from students and, if applicable, their parents, to determine eligibility for these programs.
The Impact of Early FAFSA Submission
Submitting the FAFSA early can significantly enhance a student’s opportunities for financial aid. Many aid programs, particularly grants and certain scholarships, are awarded on a first-come, first-served basis. Students who file the FAFSA closer to its opening date in October often receive more grant money compared to those who submit later.
Colleges and universities frequently establish their own priority deadlines for FAFSA submission, which may be earlier than federal or state deadlines. Meeting these institutional deadlines can increase a student’s eligibility for aid directly from the school. An early submission also provides a buffer of time to correct any errors on the application or respond to requests for verification. Receiving aid offers sooner allows families more time to compare financial aid packages from different institutions and make informed decisions about college enrollment.
Information Needed for FAFSA Preparation
Before beginning the FAFSA application, applicants must gather specific documents and information.
- A Federal Student Aid (FSA) ID is required for both the student and, if applicable, a parent, serving as a username, password, and legal signature for accessing federal student aid websites and signing the FAFSA. This FSA ID should be created well in advance of starting the application.
- Social Security numbers for themselves and their parents, if dependent.
- Tax information from the “prior-prior year,” including Forms 1040, W-2s, and other income records. The IRS Data Retrieval Tool (DRT) can securely transfer tax information directly from the IRS into the FAFSA, simplifying data entry and improving accuracy. If the DRT cannot be used, manual entry of tax data will be necessary.
- Records of untaxed income, like child support received, interest income, or veterans’ non-education benefits.
- Current balances of bank accounts and investment assets for both the student and parents. If applicable, records for businesses and farms are also needed.
- A list of all colleges to which the student wishes FAFSA information to be sent.
Navigating the FAFSA Application
Once all necessary information is assembled, the FAFSA application can be completed. The official FAFSA website, StudentAid.gov, is the designated portal for submitting the application. Upon accessing the site, applicants will log in using their FSA ID.
The application guides users through various sections, starting with student demographics and progressing to school selection, dependency status questions, and detailed financial information. The IRS Data Retrieval Tool (DRT) can securely transfer tax information directly from the IRS into the FAFSA, which helps ensure accuracy and can reduce the need for further documentation later. After all data is entered, review every section for accuracy before providing electronic signatures and submitting the form. The FAFSA is not considered complete until all required contributors have provided their information and signatures.
Post-Submission Procedures
After FAFSA submission, several steps occur. Within a few days of electronic submission, students receive a FAFSA Submission Summary. This summary provides an overview of the data submitted and includes the Student Aid Index (SAI), a number used by financial aid offices to determine eligibility for federal student aid. The SAI has replaced the Expected Family Contribution (EFC) as the key metric for assessing financial need.
Students should review their FAFSA Submission Summary for any errors and, if necessary, make corrections promptly through the StudentAid.gov website. Some applications are selected for a process called verification, which requires providing additional documentation to the schools listed on the FAFSA. Schools will notify students directly if their application is selected for verification and outline the specific documents required. After the FAFSA is processed and any verification is complete, colleges will begin sending out financial aid offers.