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Fun with the FAFSA A postsecondary education is essential for building wealth because skills gained in college or trade school enable you to earn a higher income, enjoy better job security and
job satisfaction. To pay for a postsecondary education most students must borrow money. In fact, according to the Institute of Education Sciences, about 85-90% of undergraduate students at 4-year degree-granting institutions receive financial aid. If you are considering Career Tech Education (CTE) you may also need to borrow money. Financial aid consists of need-based scholarships, loans, and grants . The U.S. government is heavily involved in the student financial aid process because it guarantees to lenders that the student loan will be repaid. If the student defaults, the lender looks to the government for repayment. That is why the loans are called guaranteed student loans . Every college or CTE bound student who is applying for financial aid must complete the Free Application for Federal Student Aid (FAFSA) , a long and complicated form the U.S. government uses to determine a student’s level of financial need. Based on the FAFSA, the government generates a Student Aid Report (SAR) , showing its conclusions about the student’s eligibility for financial aid. The SAR is made available to the colleges/universities/vocational programs the student selects on the FAFSA. Let’s explore the FAFSA. The more you know about it now, the easier it will be to complete when you have to. 1. Go to online , search “FAFSA pdf form” and download a FAFSA. Done! 2. How many steps and questions does the current FAFSA have? _ ______________________________________________________________________________ _ ______________________________________________________________________________ 3. When does the FAFSA filing period open? _________________ 4. What Is the deadline for filing the FAFSA for federal aid? _________________ 5. There is a federal deadline and a state deadline . Often the state deadline is much earlier than the federal deadline. What is the deadline for filing with your your state? What is the best policy regarding filing? _ ______________________________________________________________________________ 6. Generally, the FAFSA requires parents’ tax returns . What if your FAFSA is due in your state in February, but your parents have not filed their income tax return because it is not due until April 15? What can they do? (See Using Your Tax Return ) _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ PRODUCT PREVIEW
Chapter 7 | The Credit Conundrum 128
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