Students who want to apply for financial aid to pursue a college degree must learn about the FAFSA application. This is for the reason that this form is one of the most important aspects of federal financial aid process. It stands for "Free Application for Federal Student Aid."Students may also need to complete it to apply for institutional aid programs in addition to filing itfor federal financial aid programs. They are required to provide some basic information about their financial status and other details in this form. This information helps the education department to determine what type of financial aid program students are eligible for.
The Basics of FAFSA Application
FAFSA application is a very simple form. All students can complete it without any issue and submit it to apply for federal financial aid. In this form the applicants need to provide information about their parents' past year's federal income tax returns, past year's income records, social security number, bank statements etc. They may also need to give information about the size of their family and their enrollment status.
How Does FAFSA Application Work?
The education department uses the information provided in FAFSA application to calculate EFC. EFC or Expected Family Contribution is what a student's family may provide him/her to pay for college annually. If a student's EFC is less than the cost of attendance, he/she can benefit from a federal financial aid.
Benefits of the FAFSA Application
FAFSA application helps students to apply for a number of financial aid programs such as grants, Stafford Loans, Parent PLUS loans and GradPlus loans. As it is no more easy to afford college education as it was in the past, applying for federal student loans have become absolutely essential for students who want to pursue a college degree. It allows eligible student to avail grants which are free money other than getting student loans like Federal Stafford loans that have a very low rate of interest. Also, they have flexible payment plans that enable students to repay the loan a convenient manner.