FAFSA

The Free Application for Federal Student Aid, or FAFSA, is a form used to determine the amount of money a family is expected to contribute to the price of attending a 2 or 4 year college or university. The results of the FAFSA are used in determining student grants, work study, and loan amounts that the student may receive to pay for college. In order to receive federal Pell Grants, institutional grants, work study, or federal loans for community college or a 4-year institution, you MUST fill out a FAFSA. 

For the this year's application cycle, the FAFSA will be released between December 2023 and January 2024. Ms. B. will send an email when the date is finalized. You will use your 2022 tax returns, so you should be able to complete the FAFSA as soon as it is released. Because funding and particularly grant monies, are first-come first-serve and often are gone quickly, you should complete the FAFSA as soon as possible. 

The FAFSA can result in 3 things: Grants, Loans, and Work Study 

Grants: Money you don't have to pay back 

• A Federal Pell Grant, unlike a loan, does not have to be repaid and can be awarded for as much as $5800 

• NC Need-Based Grant / UNC System Grant : Can be as much as $4000 

• Institutional Grants : Awarded with funds from a particular college / university 

Loans: Money you do have to pay back with interest 

If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government or from private sources such as a bank or financial institution. Loans made by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources.  The William D. Ford Federal Direct Loan (Direct Loan) Program is the largest federal student loan program. Under this program, the U.S. Department of Education is your lender. There are four types of Direct Loans available:      

• Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.  

• Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but in this case, the student does not have to demonstrate financial need to be eligible for the loan. 

• Direct Plus Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. 

• The Federal Perkins Loan Program is a school-based loan program for undergraduates and graduate students with exceptional financial need. Under this program, the school is lender.                               

Work Study: A job on campus 

• Work Study provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the student’s course of study. 

• FSA- ID: Both the student and the parent must create their own FSA-ID to fill out a FAFSA. This can be created at fsaid.ed.gov.  Student and parent cannot share an FSA-ID, you must each create your own. You need a social security number and a valid email address to create this ID. If the student or parent does not have a valid social security number, please see your College Adviser for additional information. 

• 2022 Tax Returns (1040 / 1040a / 1040ez) 

• Parental tax information, as well as student tax information in cases where the student is employed, must be included on the FAFSA. Starting last year, you will use prior prior year taxes. This means you will use 2022 taxes for the 2024-2025 school year FAFSA (your college freshman year).  

• Regardless of if the parent is financially contributing to the student’s college expenses, the parent MUST provide their tax information if the student is still a dependent, which is almost always the case. 

• Other things you might need 

• Cash, savings, and checking account balances 

• Alien registration number (if applicable) 

• Records of untaxed income 

• Investments other than your home 

• After you have created your FSA – ID, go to https://studentaid.gov/h/apply-for-aid/fafsa and begin the FAFSA. The student should log in and invite their parent(s) as a contributor. This step is required for your parents to be able to add information. The FAFSA should be filled out through the student’s account. You will begin by providing student demographic, parent demographic, and dependency information. 

• Students are able to list up to 20 schools on the FAFSA. List any school that you might attend, even if you have not received an admissions decision yet! 

• When asked to provide financial information, you may either manually enter your information, or you have the option to use the IRS-Direct Data Exchange. This feature pulls the IRS tax return information needed to complete the FAFSA from your most recent tax return and transfers the data directly from the IRS Web site. It is highly recommended that you use this tool if possible, as it is the easiest way to provide your tax data and ensure that your FAFSA has correct tax information.  

• You must allow at least three weeks if filing your tax returns electronically, and at least eleven weeks if filing by mail, before using IRS Data Retrieval tool. If this time has not passed, you may enter your information manually or wait until the data retrieval tool becomes available to you. If you are eligible to use the IRS Data Retrieval Tool, then click Link To IRS to transfer your tax return information from the IRS Web site into your FAFSA. 

• After providing all the student, parent, and financial information, the student will electronically sign the FAFSA. The parent must sign in using their own FSA-ID and electronically sign the FAFSA as well. After this is done, the FAFSA is able to be fully submitted. 

• In about 30% of cases, a student may be selected for verification. If this happens, the student will need to provide additional tax return information. This usually entails ordering a tax transcript. If you receive an email in the weeks following your FAFSA submission alerting you that you have been selected for verification, do not ignore it! You must complete this process to receive financial aid. 

• After you submit the FAFSA electronically, your SAI will appear on the screen. This is your Student Aid Index, which is the amount of money that a family is able to contribute to their student’s college education. 

• The SAI, along with the results of the FAFSA, will be sent to the schools that you listed while completing the FAFSA. Schools that you are admitted to will then send you a Financial Aid Award letter. This letter will tell you the exact amount of grants, scholarships, and loans that you can expect to receive from the institution as well as any federal aid you will receive, such as Federal Pell Grants. In most cases, this letter will not include any outside scholarships you have received from community organizations, the school, or businesses.  

• You should wait until you have received your Financial Aid Award letter from every school you are considering before making a final decision. This will allow you to compare your financial aid packages at each school. Remember, don’t just look at the sticker price of attending a school! Look at how much each school will cost after you take into account and grants and scholarships you receive. 

• Remember, loans are NOT free money! You must pay them back after you finish school. 

• Grants and scholarships, for the most part, ARE free money. You usually do not have to pay them back. 

• Please set up an appointment with your adviser to go over your financial aid award letter. It is very easy to get confused and mistake loans for grants/scholarships. Please be informed and make smart financial decisions! 

I am an undocumented/DACA student. Can I file FAFSA?

• Unfortunately, undocumented and DACA students are not eligible for federal student aid. You may still be eligible for state or college financial aid. There are also scholarships you can apply to. Please contact Mr. Jordan for more specific information.

My parent/guardian(s) does not have a social security number. Can I still do FAFSA?

• Yes! Your parent/guardian does not have to have a social security number (SSN) for you to complete FAFSA.

• When FAFSA asks for your parents/guardians' SSN, they must enter 000-00-0000. They will be unable to create a FSA ID or sign the FAFSA application electronically. Instead, you will print out the signature page before submitting the FAFSA application. Then you will mail in that page.

• If you can not print it at home please see Mr. Roberts for help, she can also mail it for you!!

• Click here for more information and answers to common questions.

  • Haga clic aquí para más información.

Helpful links:

• Creating and Using the FSA ID

  • Cómo crear y utilizar la credencial FSA ID

    • FAFSA and Homeless Youth