Families of college-bound students can find out how much the federal government thinks they can afford to contribute to their child’s college education. The latest Free Application for Federal Student Aid, referred to as the FAFSA, went live on October 1st at FAFSA.gov. This is the one form that all parents must file if they hope to get any federal money for college in the 2022-23 academic year.
The newest FAFSA uses financial information from a family’s 2020 taxes. Most people are able to make use of a “shortcut” offered on the FAFSA, which is the I.R.S. Data Retrieval Tool. As long as you have already filed your 2020 taxes, you can check off that you want the FAFSA to link into your previously filed taxes and automatically fill in the numbers on all of the financial questions.
A great characteristic of the online FAFSA is that, just a moment or two after it is submitted, it indicates a family’s EFC (estimated family contribution). This is the number that is sent to all of the colleges to which a student plans to apply, letting the schools know what the government believes the family can afford to contribute to the student’s college education. Colleges then make up their financial aid offers based on this figure, typically offering students a combination of loans, grants (which do not get paid back), and work-study opportunities.
It is wise for parents to check “yes” to the question that asks whether they would like their child to be eligible for work-study, which is employment offered by the college. No one will force a student to take on a job. But if an ideal opportunity should arise, such as to do research for a professor, only students already approved for work-study can be approved.
The major drawback for many families this year is that the FAFSA uses data from a family’s 2020 tax year. Due to COVID-19, many families have been negatively impacted economically in 2021 with job losses, catastrophic medical bills, and other financial factors. If this is the case, families still need to file a FAFSA, the sooner the better, but they should follow up by contacting the financial aid office at each college to which their child is filing an application. Colleges can then institute a “professional judgment” review, taking into account a family’s current financial situation and determining a student’s aid package accordingly.
Filing a FAFSA soon after October 1st is extremely beneficial to students in all income brackets. It allows them to receive their financial aid packages in time to compare the costs and weigh their options well in advance of the May 1st deadline date to accept a college offer.
Susan Alaimo is the founder and director of Collegebound Review that, for the past 25 years, has offered PSAT/SAT® preparation and private college advising by Ivy League educated instructors. Visit CollegeboundReview.com or call 908-369-5362
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