Unlocking Educational Opportunity: FAFSA for College Financial Aid

The Free Application for Federal Student Aid (FAFSA) is the gateway to financial assistance for millions of aspiring college students. When a student completes their FAFSA, they are taking the next step in securing grants, scholarships, work-study opportunities, and federal student loans.

Understanding the FAFSA

Determination of Financial Need

The FAFSA calculates your Student Aid Index (SAI), which helps schools determine your financial need and the aid you qualify for. The SAI is calculated based on a formula using various financial factors, including income, asset information, and family size. 

Income: The FAFSA collects financial information from both the student and their parents (if the student is considered dependent). This includes income from sources like wages, salaries, business income, and investments. Certain untaxed income and benefits are also included.

Asset Information: The FAFSA considers assets such as savings accounts, investments, and real estate (excluding the family's primary residence). The value of these assets is assessed at a certain rate to determine their impact on the SAI.

Family Size: The number of people in your household is a factor in the SAI calculation. This typically includes the student, parents, and any other dependents living in the household.

Timing Matters

Many forms of financial aid, particularly grants and scholarships, are awarded on a first-come, first-served basis. Submitting a FAFSA early increases the chances of securing maximum aid.

Application Process

Complete the FAFSA online before March 1 to be considered for all federal, state and Capital University assistance. The FAFSA has to be filed annually. The amount of financial aid that comes from the FAFSA is evaluated yearly and it can change if a student has some personal changes in their lives.

Gather Necessary Documents: Collect your Social Security number, bank statements, and records of investments.  Your federal tax information will be transferred to the FAFSA from the IRS – correct values into the correct questions.

Create an FSA ID: Both you and one of your parents (if you are considered a dependent student) need to create a Federal Student Aid (FSA) ID. The FAFSA ID is connected to the last name, date of birth, and the social security number so it’s very specific to the person. The student will log in using the ID or electronically sign with their username, password, and ID.

Complete the FAFSA: Visit the official FAFSA website and follow the step-by-step instructions. You can fill out the FAFSA online. The application is free, and you can list up to 20 colleges to receive your information.

Review Your Student Aid Report: After submitting your FAFSA, you'll receive a Student Aid Report by email. Review it carefully for accuracy and make any necessary corrections.

Follow Up with Colleges: Each college you list on your FAFSA will use the information to create a financial aid package for you. Be sure to follow up with each institution to ensure they have all the required documents and information.

Each year, more than 13 million students receive aid from the Department of Education. The FAFSA is a critical tool that opens doors to higher education by providing access to financial aid. Understanding the process and taking the time to complete it accurately can make a significant difference in your ability to afford college.

Questions? Reach out to Capital University's Office of Financial Aid. We're here to help!