FAFSA: The Key Piece of the College Aid Puzzle

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November 2, 2020

Posted in Education

The Free Application for Federal Student Aid, better known as the FAFSA, is your one-stop-shop for applying for federal, state, and even university aid. Types of aid include grants, scholarships, student loans, and student employment. If you or your children are thinking of attending a college or university in the next academic year, now is the time to get working on this essential form.

As the name implies the form is free to fill out and can be filed as early as October 1st of the year preceding the year you’ll be starting school. For example, if you or your child intend to start collegiate courses in the Fall of 2021, your FAFSA window is already open (and has been since October 1). Your deadline to file is June 30 of the academic year, or the last day of your intended school’s enrollment. However, this is cutting it very close and could reduce your chances at receiving the greatest amount of aid.

Students who file the FAFSA in the first three months (October through December) tend to receive double the grants, on average, compared to those who file later. This is because some types of aid, such as Federal Work Study funding, are allotted to colleges and universities as a set amount. First-come, first-served.

Some state grant programs, including in Washington and Oregon, encourage FAFSA filers to submit their application soon as you can, as they award grants as soon as possible, until they’re depleted. For a look at how your state handles deadlines for state aid, check out the “FAFSA Deadlines” section of the Federal Student Aid’s website here.

Considering private education? You’ll want to check out the CollegeBoard’s list of schools that use what’s called the CSS Profile, an additional form that allows you to apply for aid specific to those institutions.

If you’re overwhelmed at the thought of beginning the FAFSA process, you’re not alone. The form can feel intimidating, especially your first time. Take a step back, breathe, and begin with the following steps:

  1. Get a basic understanding of the FAFSA here
  2. Review the FAFSA deadlines here
  3. Learn how to prepare for filing the FAFSA here
  4. Get answers to frequently-asked questions about the FAFSA here

If you are already working on the FAFSA, don’t hesitate to reach out to your financial planner with questions. We can offer guidance and answers along the way, as well as help you strategize on how to weave the college student aid process into your larger financial plan.

If you'd like to learn more about what it's like to work with our team, please reach out.

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The commentary expressed herein reflects the personal opinions, viewpoints, and analyses of Johnson Bixby employees and is not necessarily that of Private Client Services, LLC and should not be construed as investment advice. The views expressed are subject to change at any time without notice. Johnson Bixby and Private Client Services do not offer tax or legal advice. Always consult a tax or legal professional regarding your individual situation. Nothing in this article constitutes personalized investment advice, an offer, or solicitation to buy or sell any specific security or adopt any specific investment strategy. Any reference to specific securities or performance is for illustrative purposes only and should not be considered a recommendation. Investing in securities involves risk, including the potential loss of principal. Past performance is no guarantee of future results. Diversification does not ensure against loss. Advisory services offered through Johnson Bixby, an SEC Registered Investment Advisor. Securities offered by Registered Representatives through Private Client Services. Member FINRA/SIPC.

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