Time is of the essence

Time is of the essence

Fill out the FAFSA form early and plan for it. I think that's the one thing that people really overlook. People are often told to fill out the FAFSA, but they do it without preparation. I emphasize that planning is what makes the form useful.
Many aspects of the FAFSA are not straightforward, so it's essential to set aside sufficient time to read over the instructions. Filling out the FAFSA is generally not a quick 45-minute process or something to try to do during the Superbowl half-time — as one family did — and made mistakes.

The fundamental issue and therefore problem with the FAFSA is that people approach it like a tax-preparation form. Definitions and rules differ between tax forms and FAFSA forms, as to what are considered assets, investments, and household income.

One example of family situation: "If I'm divorced, my son is going to college, and he lives with his mom 95 percent of the time but I claim him as a dependent on my taxes, the student includes only the income and assets from the mom and not from the dad on the FAFSA form."

A few more things to keep in mind when filling out the FAFSA form. For income, the base year is the year before. For assets, it's the moment you submit the FAFSA form, what the assets are worth the day you file the FAFSA. It's easy to confuse the parent and student information, so watch carefully where you record what. The student sections, which come before the parent sections, refer to spouse because some students applying for financial aid are married.

When to fill out the FAFSA?
The sooner the better is the rule of thumb to use here. High school seniors and those already in college or trade school should aim to complete the FAFSA by Jan. 31, if possible. If you haven't completed your taxes yet, they suggest using estimates based on previous years tax returns to complete the FAFSA and sending an amendment later.

Submitting early can mean getting Pell grants before they are all given out. It can mean getting subsidized or Perkins loans, [in which the government covers the interest when you are in school], as opposed to unsubsidized.

Most people submit their FAFSAs in March or April, after they submit their taxes; but by then, many of the funds have already been allocated to other students. The bottom line is: The longer you wait, the less funds will be available. Even something like work-study is on a first-come, first-served basis.
The FAFSA generates the SAR (Student Aid Report). Three to four weeks after you file a FAFSA, it [the SAR] comes back to you in the mail, and that will have what they calculate to be your estimated family contribution.
Even high school freshmen can fill out an estimated form based on where they're planning to attend school, so they know what their savings goal needs to be. For example, if you're looking at Yale, you'll have a better idea whether it will cost your family $50,000 a year for you to attend - or $10,000. (See http://www.fafsa4caster.ed.gov.)

Brad Asbury
Access College Foundation
basburycsa@yahoo.com