College applications get a lot of attention senior year—but there’s another part of the process families can’t afford to ignore:

Financial aid.

Even if you aren’t sure whether your family will qualify for need-based aid, preparing for the financial aid process should be on your college checklist.

The FAFSA—the Free Application for Federal Student Aid—is used to determine eligibility for federal student aid, including grants, work-study and federal student loans. States and colleges may also use FAFSA information when determining eligibility for their own financial aid programs.

The biggest mistake?

Waiting until the last minute to figure out what you need.

Here’s how students and parents can start preparing now.

1. Understand What the FAFSA Is

The FAFSA is the federal financial aid application available through StudentAid.gov.

Completing it may help students access several types of financial aid, including:

• Federal grants
• Federal student loans
• Federal Work-Study
• Some state financial aid
• Some college-based financial aid

And remember: FAFSA is FREE.

You should never have to pay someone simply to submit the FAFSA for you.

2. Create Your StudentAid.gov Accounts

Don’t wait until you’re ready to complete the FAFSA to figure out your login.

The student needs a StudentAid.gov account to complete the FAFSA online.

Other people required to provide information on the FAFSA—called contributors—also need their own StudentAid.gov accounts.

Depending on the family’s situation, a contributor could include a parent, stepparent or spouse.

Important: Parents and students should NOT share one account.

Each person who needs an account should create and maintain their own login information.

3. Figure Out Who Needs to Be a FAFSA Contributor

This is especially important for families with divorced or separated parents, remarried parents or other situations where it isn’t immediately obvious whose information should be reported.

Don’t guess.

Federal Student Aid provides guidance to help students determine which parent should participate in the FAFSA.

A contributor provides required information, gives consent for certain federal tax information to be transferred from the IRS and signs their portion of the FAFSA.

And here’s an important distinction:

Being a FAFSA contributor does not mean that person is agreeing to pay for college.

4. Gather Your Financial Information

Much of the federal tax information used on the FAFSA can be transferred directly from the IRS with the required consent and approval, but families should still have their financial records available.

Before starting, gather the information you may need, including:

• Federal income tax returns
• Records of assets
• Records of child support received, if applicable
• Student financial information
• Parent/contributor financial information
• A list of colleges the student is considering

Having everything together before you begin can make the process much easier.

5. Build Your College List

You don’t necessarily need to have your final college decision made before completing the FAFSA.

But you should have a working list of colleges you’re considering.

The FAFSA allows students to provide information about schools they’re interested in attending so those schools can receive the FAFSA information needed for their financial aid process.

As your college list changes, make sure your financial aid information keeps up with it.

6. Know That FAFSA Isn’t the Only Financial Aid Deadline

This is extremely important.

There can be multiple financial aid deadlines:

• Federal FAFSA deadline
• State financial aid deadline
• Individual college financial aid deadline
• Scholarship deadlines
• Additional institutional financial aid form deadlines

And those dates may be very different.

Some financial aid is limited, so don’t assume you should wait simply because the federal FAFSA deadline is months away.

College Ready Tip: Create a financial aid deadline column on the same spreadsheet or tracker you’re using for college application deadlines.

7. Check Whether Your Colleges Require Additional Financial Aid Forms

FAFSA may not be the end of the financial aid application process.

Some colleges may request additional financial information or forms.

When researching each school, don’t just look at the admissions page.

Go to the school’s financial aid website and look for a checklist specifically for prospective first-year students.

Ask:

What forms are required?

When are they due?

Is the deadline different for Early Decision or Early Action applicants?

Are there separate forms for scholarships?

8. Start Looking for Scholarships Now

Don’t wait until you’ve been accepted to college to start thinking about scholarships.

Scholarships can come from many places:

• Colleges and universities
• Local community organizations
• Foundations
• Employers
• Professional organizations
• Civic groups
• Local businesses
• National scholarship programs

Your high school counseling office can be an excellent resource, particularly for local scholarships that may have a smaller applicant pool.

Keep a spreadsheet with the scholarship name, amount, requirements, deadline and application status.

Even smaller awards can add up.

9. Don’t Automatically Rule Yourself Out of Financial Aid

Some families assume:

“We make too much money. We won’t get anything.”

Don’t make that decision without researching your options.

Financial aid eligibility can depend on more than one number, and colleges have different costs and institutional aid policies.

Also, financial aid isn’t limited to need-based grants.

Completing the FAFSA may be relevant to other forms of aid as well.

Research first. Decide second.

10. Learn the Difference Between the Sticker Price and What You May Actually Pay

That $75,000 or $90,000 published cost of attendance can be shocking.

But the published price isn’t necessarily what every student pays.

The amount a family actually pays can be affected by grants, scholarships and other financial aid.

When comparing colleges, pay attention to net price, not just the advertised tuition or total cost of attendance.

Use each college’s Net Price Calculator to get an estimate based on your family’s circumstances.

It’s not a financial aid offer, but it can be a helpful planning tool.

11. Understand the Different Types of Financial Aid

Not all financial aid is the same.

Grants

Money that generally does not need to be repaid, assuming applicable requirements are met.

Scholarships

Money awarded based on criteria such as academics, talents, activities, background, community involvement or financial need. Scholarships generally don’t need to be repaid, although they may have requirements for renewal.

Work-Study

Eligible students may earn money through qualifying part-time employment while enrolled.

Student Loans

Borrowed money that must be repaid, generally with interest.

When financial aid offers arrive, don’t simply look at the biggest total number.

Look at what the package actually contains.

A $30,000 package made mostly of scholarships and grants is very different from a $30,000 package containing significant loans.

12. Talk About the College Budget BEFORE Acceptances Arrive

Parents: this conversation needs to happen sooner rather than later.

Students should have some idea of what their family can realistically afford before falling in love with a college.

Discuss:

• What can your family contribute each year?
• Will the student be expected to contribute?
• Are student loans an option?
• How much debt is the family comfortable with?
• Will scholarships be necessary?
• Does the student understand the total four-year cost?

This may not be the most exciting college conversation.

But it’s one of the most important.

13. After You Submit the FAFSA, You’re Not Finished

Once the FAFSA has been processed, the student can access a FAFSA Submission Summary through their StudentAid.gov account.

Review it carefully.

Check for errors, required corrections or additional steps.

Students should also monitor their email and college applicant portals because colleges may request additional financial information or documentation.

Then, when financial aid offers arrive, compare them carefully.

Don’t compare only the amount of “aid.”

Compare your actual out-of-pocket cost at each college.

Parents: Help—But Let Your Student Participate

Financial aid is understandably an area where parents take a larger role because family financial information is involved.

But don’t completely remove your student from the process.

Students should understand:

• What college costs
• What financial aid they’re receiving
• Whether they’re borrowing money
• How much they’re borrowing
• What scholarships require
• What their family is expected to contribute

This is real money.

Your student should understand the financial decision they’re making.

College Ready Financial Aid Checklist

✓ Create the student’s StudentAid.gov account
✓ Determine which parent/contributor information is required
✓ Have contributors create their own StudentAid.gov accounts
✓ Gather tax and financial records
✓ Create a working college list
✓ Check FAFSA requirements
✓ Check state financial aid deadlines
✓ Check each college’s financial aid deadline
✓ Find out whether colleges require additional forms
✓ Use college Net Price Calculators
✓ Start searching for scholarships
✓ Discuss your family’s college budget
✓ Submit required financial aid forms on time
✓ Review the FAFSA Submission Summary
✓ Compare financial aid offers carefully

College Ready Takeaway

Paying for college shouldn’t be a conversation that begins after the acceptance letters arrive.

Start preparing now.

Create your accounts.

Gather your financial information.

Research deadlines.

Look for scholarships.

Talk about your family’s budget.

And most importantly, make sure both the student and parents understand what college may actually cost.

Because choosing a college isn’t only about getting accepted.

It’s also about creating a financial plan your family can live with for the next four years—and beyond. 💙