7 Mistakes That Could Cost Students Federal Aid
Millions of parents and students fill out the Free
Application for Federal Aid (FAFSA) every year, but making one mistake can cost
families thousands of dollars. To begin
with, filing as close to the October 1st annual debut as possible is
vital for families to get maximum financial aid. Here is how to help your family get the most
financial aid and to avoid these seven common mistakes:
1.
Not
Filling Out the FAFSA: Families
often think they make too much money to qualify for federal student aid. If you do not fill out the FAFSA, you’re
telling the school you don’t want their financial help. FAFSA is the first step in applying for most
scholarships and university grants, which can have much higher income limits
than Pell Grants.
2.
Being
Afraid of the IRS Data Retrieval Tool:
Because of the Equifax data breach, families are scared to use
electronic tools with financial information.
The IRS Data Retrieval Tool that will import 2016 tax data into the form
is easy to use and is highly secure.
3.
Waiting
Too Long to File: Financial aid such
as university and state grants can be awarded on a first-come, first-serve
basis. With the relatively new October 1st
debut date for the 2018-2019 academic year, schools have the option to award
financial aid packages months earlier than in past years.
4.
Not
Naming Enough Schools: You can
choose up to 10 schools to receive your financial aid information. Pick 10.
Why is this important? If a
school is not on your list and you do end up choosing the school, you will get
financial aid behind other students who named their school on the FAFSA form
when first filing. If you don’t have 10
schools you’re considering among your final choices, add schools from your
maybe list or a school that’s a bit of a reach academically or financially.
5.
Not
Listing State Schools First: Some
state schools will give more aid to the students who listed their college at
the top of the list.
6.
Not Being
Prepared: When you sit down to fill
out the FAFSA form, you may experience delays if you don’t have all your
information ready. Parents and students
should create a user ID and password for the student and each parent
beforehand. Parents should also gather
financial records from brokerage accounts, bank accounts, 529 plan accounts and
information on their real estate.
7.
Paying to
File the FAFSA: The first “F” in
FAFSA stands for free. There is no fee
for completing the FAFSA. If you are
asked to pay to complete the FAFSA, you are on the wrong website. The correct site is www.fafsa.ed.gov.
If you have any questions, please contact your school
counselor. Good luck!
