Transcript

Welcome to Knowledge for College brought to you by Chase, and thanks for joining us. This series of videos provides valuable information on the many important steps of going to college and financing an education.

Hi, I’m Chelsea Richardson. Today, Ken Butler will explain the Free Application for Federal Student Aid, or FAFSA as it’s commonly called. When it comes to college and financial aid, a term you may hear a lot is FAFSA. But what exactly is the FAFSA and how is it important?

FAFSA stands for Free Application for Federal Student Aid. This is where you begin the process of finding money to help pay for college. All federal financial aid programs, and most state programs, require that students and parents complete a FAFSA every year. The FAFSA determines what federal aid is available to you and how much your family’s expected to contribute to your education.

Some people may think, "Why should I bother with this form? We’ll never qualify for anything with our family income." You should still complete a FAFSA. There's federal aid available that’s not based on income, like unsubsidized Stafford loans for students and parent PLUS loans for parents.

Don't risk losing out on the possibility of help for college – you won't know until you apply.

Remember, it’s important that you follow all the FAFSA instructions carefully and that you apply early. If you’re in high school, the best time to complete and submit the FAFSA is January of your senior year. February and March are also good times to apply.

And, if possible, submit the FAFSA form online at FAFSA.ed.gov . The federal government says it's faster and easier. You can complete a paper FAFSA, but it may take four to six weeks to determine your eligibility. The online application is sent immediately to the U.S. Department of Education for processing and can take much less time.

Another reason to complete the FAFSA online, is that potential errors are identified immediately so you can make corrections before submitting. When applying online, you can also send your application information to as many as 10 schools, while the paper version is limited to just four schools.

The FAFSA will ask for your prior year’s tax return information. Many families wonder if they should wait to complete the FAFSA until after their taxes are filed. But if you choose, you can submit the FAFSA with your estimated taxes. That way, you can apply early and make corrections later if your estimated income and taxes don’t match the actual figures.

Once your FAFSA is processed, your results will be sent to you in a Student Aid Report or (SAR). Your SAR will include your Expected Family Contribution, or EFC. This is the amount that you and your family are expected to contribute to your education.

This data will automatically be sent to the schools you listed on your FAFSA, and all colleges use this information to determine if you’re eligible for financial aid—including federal grants, loans or work-study awards and other non-federal financial aid.

To learn more about federal grants, work-study and loans, visit StudentAid.ed.gov. If you need help completing the FAFSA, call 1-800-4-FEDAID or visit FAFSA.ed.gov or ChaseStudentLoans.com

Knowledge for College is brought to you by Chase to help you better understand college financing. If you have any questions on your specific financial situation, consult your financial advisor or the financial aid office of your school.