The State of New Jersey has now made the filing of a FAFSA a graduation requirement. This has resulted in the proliferation of myths and undue stress on many families.
First of all, there is no cost to file a FAFSA. The first “F” stands for “Free.” FAFSA is an acronym for Free Application for Federal Student Aid. The State of New Jersey is requiring it because so many graduating students miss out on scholarship money by not filing this form. (There is the ability to “opt out” for those who refuse to participate.)
The FAFSA has been greatly simplified, with the number of questions reduced from 108 to 46. The streamlined version is considered to be user-friendly, and many financial questions can be answered by linking to a previously filed tax return. It is currently available online for the families of students graduating and starting college in 2025.
While many states and colleges use the FAFSA to award scholarship funds, it’s also an application for federal student loans. It’s important for families to realize that there is no such thing as having too high an income to file a FAFSA. Financial need is not a requirement for an unsubsidized student loan or a Parent Plus loan.
Undocumented parents are not disqualified from filing a FAFSA and a Social Security number is not a requirement.
When filing a FAFSA, students list all the colleges to which they are applying. Once the FAFSA is completed, they are assigned an “SAI,” which stands for Student Aid Index. This number is sent to each of the colleges, which use it to create an aid offer. Students and parents can compare the financial offers from different colleges, which may impact their ultimate college choice. They can also choose whether or not to accept any or all parts of an aid offer. For example, it’s possible to accept the grants that are offered (which do not get paid back), but not the loans (which do get paid back).
In signing a FAFSA, parents are simply stating that the information they provided is accurate, to the best of their knowledge. They are not signing a bill or agreeing to anything. Thus, there is no downside to filing a FAFSA, and families may be pleasantly surprised by the financial opportunities that it provides.
Susan Alaimo is the founder & director of Collegebound Review, offering PSAT/SAT® preparation & private college advising by Ivy League educated instructors. Visit CollegeboundReview.com or call 908-369-5362
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