Do you need financial assistance to continue school?
Applying for Federal Aid
What is FAFSA?
FAFSA is an acronym that stands for Free Application for Federal Student Aid.
FAFSA is a relatively easy form to complete and can be accessed and completed online. FAFSA now offers the option to electronically sign your document using a four-digit assigned number. This option allows you to 1) fill out, 2) save, 3) complete, and 4) sign and submit your form online without having to print and/or mail your application.
Be sure to keep your FAFSA assigned four digit pin number in a safe place because you can use it every year to submit your form.
Some things to know about FAFSA
- It must be submitted every year. Generally submit your form around February or March.
- You will need the information from your federally filed tax forms
- You can choose whether to fill out information about your parents?f status. If you are an independent (meaning your parents are not claiming you as an exemption on their federal forms) then you DO NOT need to fill out information for your parents.
- You can electronically sign and submit your FAFSA using an assigned four digit number, which is called your PIN (personal identification number). You can use this same pin number every year that you renew (SEE: http://www.pin.ed.gov/PINWebApp/appinstr.jsp)
- The FAFSA website provides very helpful directions, also do not hesitate to ask your school advisor for help.
- You must also file a separate financial aid form that is specific to your university or college after you have filed your FAFSA form.
Subsidized vs. Unsubsidized
I do not understand, what is the difference between subsidized and unsubsidized?Subsidized loans are loans that are subsidized by the government. Subsidized means that the loan is NOT gaining interest while you are in school full-time. Once you finish school or if you change to part-time status, then you have six months (called a grace period) before the loan begins accruing interest and before the first payment is due.
Unsubsidized loans are loans that are not subsidized by the government. This option means that your loan IS gaining interest while you are in school. Once you finish school or if you change to part-time status, then you have six months before the first payment is due.
*Interest = money that is added to your original loan amount
Some things to know about (un)subsidized loans
- If you can manage it, you want most or all of your loans to be subsidized. You will save a lot of money by staying away from loans that gain interest while in school and staying away from private loans, which generally have higher interest rates than government loans.
- The federal subsidized loans are the Subsidized Stafford Loan and the Perkins Loan
- You are only permitted so much money for both types of loans. However, the cap on the amount of money under a subsidized loan is relatively small.
- Consider consolidating your loans after you finish school. Consolidation is a process whereby all your non-private loans are put together under one large loan so that you receive only one bill each month and you generally can get a lower interest rate. There are many companies that offer consolidation services so shop around to make sure you are getting the best deal.
