Question: My son is applying for college for next year, and I see that we can submit the FAFSA form starting on October 1. Is there a benefit to doing it now rather than later? How am I supposed to fill out the form when I haven't filed my taxes for 2018 yet?
The timeline for applying for federal financial aid changed two years ago, and you can now submit your Free Application for Federal Student Aid on October 1 rather than waiting until January 1. It's a good idea to submit the FAFSA as soon as possible because some colleges award their aid on a first-come, first-served basis. You'll also find out where you stand for aid awards faster. "Those who complete and submit the FAFSA on or soon after October 1 will receive their Student Aid Report sooner and may receive financial aid award letters from schools earlier," says Rick Castellano, a spokesperson for Sallie Mae, which provides student loans.
You generally have until June 30 to submit your FAFSA, but some states and schools have earlier deadlines. Check the deadline with the financial aid offices of the schools you're considering. Also find out whether the schools use the CSS Profile, which is an additional financial aid application that 400 major colleges require. See the CSS Profile page for more information and a list of participating colleges.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The tax information that the FAFSA requires also changed two years ago. Instead of using your info for the current tax year, you use the data from your previous tax return -- which would be your 2017 tax return for the 2019-20 school year -- so you don't have to wait until the end of the year to file the FAFSA. However, if you've had any changes to your income since 2017 -- say, you stopped working, or you switched to a lower-paying job -- contact each school's financial aid office to explain the reduction in income, ask for a review of your file using the new information or learn about the appeals process.
You need to file a FAFSA to receive federal financial aid, as well as aid from many colleges (see How to Fill Out a FAFSA for College Financial Aid). Even if you don't think you'll qualify for aid, it's still a good idea to fill in the form. Some schools have increased their income levels for aid, and the application may also be required to qualify for other types of scholarships at some colleges.
Before you fill out the form, parents and students should create a Federal Student Aid ID and password and gather Social Security numbers, driver's license numbers, bank statements, 2017 tax returns and W-2 forms, says Castellano. (See FAFSA.gov for more information about creating your FSA ID). Then go to FAFSA.gov to fill in the form -- the Department of Education redesigned the site this year to make it easier to navigate. You can also use the IRS Data Retrieval Tool, which can speed up the process by automatically transferring information from your tax return into the FAFSA. See the Department of Education's graphic for the steps to transfer tax information into your FAFSA form.
For more information about the steps to take to file the FAFSA, see the Department of Education's FAFSA guide.
One new development this year is the Department of Education's free myStudentAid App, available from the Apple App Store and Google Play, where you can complete your FAFSA on your iPhone or Android device. Castellano warns to watch out for look-alike apps that charge money. "Remember that it's always free, so watch out for sites that charge fees or make promises that sound too good to be true," he says.
-
Are Student Loans Being Forgiven or Not?Student Loans The House and Senate voted to repeal President Biden’s student loan forgiveness plan, but does it even matter?
-
Are Scholarships Tax-Free?Education Scholarships are generally tax-free if certain IRS and other requirements are met.
-
8 Times You Should Contact Your Financial AdviserWhether you experience a job change or begin caring for aging parents, your financial adviser can help manage the impact on your financial plan.
-
Student Loan Forgiveness Blocked For Now Due to Court RulingsBiden's student loan debt forgiveness program is on hold until the U.S. Supreme Court weighs in.
-
529 Plan Contribution Deadlines529 Plans Many states have year-end deadlines for making 529 college savings plan contributions.
-
The FAFSA: File Early to Get Aid for CollegeThe FAFSA is the most critical document to get financial aid for college.
-
3 Key Ways You Can Help a Child or Grandchild Pay for Collegecollege Options such as 529 plans, education savings accounts and tax-free gifts can ensure you don’t carry a child’s student loan debt into your golden years.
-
Borrowers Over 50 With Student Loan DebtPaying for College Millions of borrowers 50 and older are struggling to repay loans for themselves and their children, some delaying retirement. There’s a trick, though, to help with repayment.
