For those not familiar, the FAFSA is the Free Application for Federal Student Aid and is required by practically all universities and other scholarship funders as well as student loan applications. According to a recent article in the New York Times, some families have become so intimidated by the form, that they are hiring professional assistants to help them.
With over 100 questions it can be daunting and Arne Duncan, the new Secretary of Education said of the FAFSA, “You basically have to have a Ph.D. to figure that thing out,” in his confirmation hearing. Obama (and former opponent Clinton)even vowed to eliminate the FAFSA during his campaign.
The goal of the FAFSA was to make a single form that contained the pertinent for all funding agencies to make their award decisions, thus preventing the student from needing to fill out numerous forms for every institution or funding opportunity. In theory, this would be a great service, but unfortunately, every program has specific information they want to see, resulting in a lot of questions.
On top of that, the form asks for financial numbers that can only be known by first completing one’s Federal Tax Return. Not a problem, except that aid goes quickly. The sooner you get the form in, the better your chances are at receiving aid.
I was a bit shocked by the families who ran into “form fright.” The form is inadequate, overly lengthy, and a pain, but if you read and follow the directions, it really is not that difficult, and although Arne Duncan may have trouble with it, no advanced degrees are necessary.
The website includes a page of documents needed, and it is possible to file on the web (as long as you can check your e-mail at the same time). But, you can always print it out and mail it if you wish. Filing the FAFSA is more an exercise in following directions than anything else. I took only about 15 minutes to complete mine for this year (I already had a PIN from previous years so didn’t need to wait for that).
The first mistake many of these parents made was to go to the wrong site – www.fafsa.com (NOT THE REAL SITE) and to pay an advisor to help them fill out the FREE application.
Unfortunately, even when the form is completed correctly, the formula is notoriously bad. FAFSA is interested in assets such as savings bonds and wants information such as current bank account balances, yet it ignores certain assets, such as recreational vehicles, yachts, and private jets. Because relative cost of living and changes in income from one year to the next are not considered, the EFC (Estimated Family Contributed) can come out extremely high or low when compared to the family’s actual budget. Many universities subtract the EFC from their cost of attendance to decide how much aid a student will need and thus how much the student is eligible for. Those with a lower EFC will likely get more aid.
To ease the process of filing the form and to make the formula a bit more equitable, I would suggest the following:
- Integrate the FAFSA into the 1040.
- As I eFile my 1040, I could check a box to share info with the Department of Education
- An additional worksheet could open up to ask me questions about my assets
- Calculate relative cost of living
- Assume that student will decline when beginning school and adjust the EFC projection for the coming year accordingly
Further Reading
- New York Times >> The Big Test Before College? The Financial Aid Form
- Official FAFSA Website
- TeacherJay’s EduBlog >> (Economically) Stimulating Students
Recent Comments