How the Fafsa Unlocks College Financial Aid
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What is the main topic discussed in this episode?
Here's your money briefing for Monday, January 4th. I'm J.R. Whelan for The Wall Street Journal.
What is the FAFSA and why does it matter for paying for college?
Millions of families with high school seniors are starting the new year figuring out how they're going to pay for college. The Free Application for Federal Student Aid, or FAFSA, is a gateway to a wide range of financial aid packages, grants, and scholarships. Yet many families don't complete the application.
And it's really, really unfortunate because you're just leaving so much potential money on the table. Pell grants, grants are money you don't even have to pay back. You know, if you fall into the category where you get those grants or even aid from the college, need-based aid from the college in addition to the federal government, it's just so unfortunate to miss out on an opportunity for money.
Our contributors Cheryl Winokur-Monk will sort through some of the more intimidating aspects of the FAFSA that keep many families from completing the form and go over free services available to help families pursue financial aid. That's after the break.
College is one of the largest expenses a family will take on, and the Free Application for Federal Student Aid, or FAFSA, can open up doors to a wide range of financial aid opportunities. Wall Street Journal contributor Cheryl Winokur-Munk is here to talk about the importance of the form and help that's available to families. Cheryl, thanks for being here.
Thanks for having me.
So what kinds of financial aid opportunities are available through the FAFSA?
What types of federal and college financial aid can FAFSA unlock?
Well, you'll be eligible for aid from the federal government. So that means grants, scholarships, and loans. And it also means college aid, so aid directly from the colleges themselves. Sometimes scholarship providers also want to see that you file the FAFSA. So that's why it's so important, because it's not just one thing. You may say, oh, I'm not going to be eligible for any need-based aid. But even if you're not eligible as a family for need-based aid, you can still potentially get a loan. And there are a whole bunch of reasons why you might want to consider a federal loan, even if you know you can pay it back. It helps a student build credit, for example, in his or her own name. And even if the parents want to pay it back, you can't get that loan unless you fill out the FAFSA.
Even if you think you're not going to need, like you won't qualify for need, it's still important to file the application.
And what makes filing the form such an intimidating task? And where do experts suggest that parents start the process of seeking out financial aid?
There's just a lot of different kinds of questions that people may not be familiar with filling out. And there's a student part and there's a parent part. It's just basically, it's not a lot of work. It's just a lot of things that are different than maybe they're used to normally. And there is a lot of free advice you can get.
Why do families find completing the FAFSA intimidating?
Sometimes high schools do a lot, sometimes FAFSA nights where they'll offer hands-on help. There are also state resources and nonprofit organizations that offer free advice on filling out the FAFSA. You can also, and many students don't realize that they can seek help from the financial aid office of the school they're applying to.
Yeah, let's talk about the assistance that's out there. Do you think that parents and students are aware of the number of services, free or paid, that are available?
I don't think that they really are. And really, you should never pay for help with filing the FAFSA because there is so much free help available. I mean, there is a flip side. Sometimes people will hire counselors to help them and they do pay a service. And sometimes people feel, well, I don't really want to deal with it and I will pay for advice. But in general, there's so much free advice on the FAFSA that you just don't have to pay for it.
You know, the cost of college keeps going higher.
Where can students and parents get free help filling out the FAFSA?
This could really be a difference maker.
And if you don't fill out the form, you're really potentially leaving a lot of money on the table.
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Chapters
7 chapters
1
What is the main topic discussed in this episode?
0:05–0:10
2
What is the FAFSA and why does it matter for paying for college?
0:10–1:30
3
What types of federal and college financial aid can FAFSA unlock?
1:30–2:44
4
Why do families find completing the FAFSA intimidating?
2:44–3:39
5
Where can students and parents get free help filling out the FAFSA?
3:39–5:39
6
Should families ever pay for FAFSA help and what privacy concerns exist?
5:39–7:36
7
How are states using FAFSA completion requirements to boost submissions?
7:36–7:39
Speakers
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