Complete the FAFSA

FILLING OUT THE FREE Application for Federal Student Aid, or FAFSA, is one of the most important steps students and their families can take to pay for college. In recent years, some states have even made completing the FAFSA a high school graduation requirement.

The U.S. Department of Education awards more than $122.4 billion in federal grants, loans and work-study funds, according to the most recent Federal Student Aid annual report. The agency reports that federal funds assist nearly 13 million students in completing their education.

Federal financial aid can be awarded, such as with a grant; borrowed; or earned through work experience.

"The FAFSA is the application that is required to be used by all schools in awarding federal student aid," says Brad Barnett, financial aid director at James Madison University in Virginia. "So if you want federal loans, federal grants, federal work-study, you have to do the FAFSA."

Nearly all students who apply qualify for some form of federal financial aid. "It's very easy to qualify for aid based on the FAFSA," Barnett says.

Where Do I Find the FAFSA?

Students can fill out the online FAFSA application using their computer or mobile phone. Alternatively, the paper version, known as the PDF FAFSA, can be printed and filled out manually or filled in on the screen prior to printing and mailing.

The mobile version of the FAFSA launched last year and will continue to be available when the 2020-2021 FAFSA opens on Oct. 1. The Department of Education's phone-friendly version aims to increase FAFSA completion rates. According to the Pew Research Center, around 96 percent of Americans own a cellphone of some kind.

To complete the form via mobile phone or a tablet, families will need to download the myStudentAid app from either the Apple App Store or Google Play.

According to the Education Department, students and parents can start filling out the FAFSA on one device, like a cellphone, and complete the form on another, like a desktop. Parents and students don't have to complete the FAFSA at the same time when they're applying for financial aid.

What Is an FSA ID and How Do I Get One?

The first step, before filling out the FAFSA, is to create an FSA ID, which serves as an electronic signature. Parents and students can find a link to obtain an FSA ID through the Federal Student Aid website. To create a unique ID, applicants will need their Social Security number, date of birth and their name as it appears on official documents.

The FSA ID is required in order to sign the FAFSA online and to log in to the myStudentAid mobile app. "That FSA ID will take a little bit of time to set up; it'll take a couple of days to be active so you can actually use it. And then when you have the FSA ID, then I would sit down and do the FAFSA," Barnett says.

Parents and students will need to generate their own specific IDs, since applicants aren't allowed to create one on someone else's behalf. A parent who does not have a Social Security number cannot create an FSA ID. On the online FAFSA form, a student can enter all zeros where it asks for the parent's Social Security number, and then select the option to print a signature page at the end of the application.

For students age 24 and under who are seeking an associate or bachelor's degree, both a student and parent FSA ID are required unless the student is considered independent on the FAFSA.

To be considered independent on the form, the student must be married; a veteran or current member of the armed forces; an orphan; an emancipated minor; a homeless youth or one at risk of being homeless; a parent who provides more than half of the financial support for a child or dependent; or have received foster care or been a ward of the court for any period after age 13.

Who Is Eligible to Receive Federal Student Aid?

U.S. citizens, nationals, legal permanent residents and individuals who have an Arrival-Departure Record from U.S. Citizenship and Immigration Services showing certain designations, including refugees, are eligible to apply for federal student aid. Students need to be enrolled in a Title IV-eligible program, meaning one that can receive federal financial aid funds, to qualify.

The FAFSA asks for information about income, assets and demographic factors, such as household size and number of children enrolled in college at the same time. This information is used to calculate the expected family contribution, often referred to as EFC, which determines eligibility for federal student aid. For instance, if the EFC is zero, then the student will most likely qualify for a Pell Grant – a federal award based on financial need.

But even families with higher incomes qualify for some type of aid. Students who aren't eligible for a federal grant, for instance, may still qualify for work-study or federal loans, which typically carry lower interest rates compared with private education loans.