By Dave Coen
For those families who have seniors applying for college, and those with students in college, the Free Application for Federal Student Aid (FAFSA) is a form most families dread filling out every year. It’s notorious for being time-consuming and tedious. But it may not be as scary as you think as long as you avoid these 5 common FAFSA mistakes.
1. Waiting To Fill Out The Form
Some state schools award financial aid on a first-come, first-served basis. If you delay filling out your application, you may miss out on aid from these institutions (even if you qualify for it). To ensure you have the best chance of getting the most aid, fill out FAFSA ASAP, even if your college’s deadline isn’t for a few months.
2. Entering In Financial Information Manually
Everyone dreads typing in a never-ending list of financial data. Once you enter all the information, you spend even more time verifying that it’s correct. Thankfully, there’s an IRS Data Retrieval Tool (IRS DRT) that lets you automatically import information from your tax return into FAFSA.
This feature isn’t available to everyone, but if you see an option to “Link to IRS,” take it! It guarantees your information is accurate and it saves a ton of time.
3. Not Listing All Schools You’re Interested In
Schools don’t know to consider you for aid unless you list them on FAFSA. And as we mentioned in #1, some state schools award aid on a first-come, first-served basis. So, instead of listing your top pick on FAFSA and leaving it at that, enter school codes for every institution you’re applying to. This holds your spot in line and guarantees you have the best chance of receiving aid if you qualify.
4. Not Filling Out The Form At All
You may think you shouldn’t fill out FAFSA if your parents (or you) have a high income, but this is a myth. FAFSA uses a complex formula to determine your Expected Family Contribution (EFC), which then determines how much aid you receive. Income is a small part of this formula.
FAFSA is also used for way more than federal aid. Some grants, loans, and scholarships use it to determine your eligibility. The bottom line is, you should still fill out FAFSA every year (regardless of income) to ensure you receive as much financial support as possible.
5. Using The Wrong Website
The official website for filling out FAFSA is studentaid.ed.gov (.gov is the key indicator here). There are dozens of sites out there that look like the official FAFSA site (they may end in .com or .org), but they’re not legit. These sites typically walk you through the entire process, just to ask for your credit card information at the end.
At this point, you have two decisions: fork over money for payment or start the whole process over again on the official site. Do yourself a favor…save your money and your precious time by going to the correct website first.
How We Help
College planning is a huge expense, and filling out FAFSA is one way to reduce costs. At College Planning America, we specialize in helping families avoid costly mistakes that could unintentionally drain their nest egg. If you’re wondering how you can maximize your financial aid eligibility, you’ve come to the right place. Get started today by emailing me at dcoen@sageviewadvisory.com or calling 800-814-8742.
About Dave
Dave Coen is a Financial Advisor with SageView Advisory and the CEO of College Planning America. Along with his retirement financial industry experience, he is a College Planning Specialist. He works closely with individuals and families to provide comprehensive financial planning that addresses all elements of their financial picture. Learn more by connecting with Dave on LinkedIn.
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