Financial Aid Forms Explained

In order to figure out how much, if any, aid you will qualify for, you will need to fill out more forms than you’d probably like. Generally, to apply for need-based aid, you will need to be prepared to submit:

• The Free Application for Federal Student Aid (FAFSA). The FAFSA is a form, available in English and Spanish, required of all students wishing to apply for federal aid. As the title suggests, there is no fee for processing. Since the FAFSA takes into account information on your most recent tax return, you can’t file before January 1 of the year in which your child starts college. Families may complete a paper copy of the FAFSA, normally available after December 1 at secondary school guidance offices. An increasing number of families apply online at www.fafsa.ed.gov. If you apply online, errors can be caught and corrected as you complete the form. In addition, online turnaround time is just two to three weeks, compared to a four- to six-week turnaround time for hard copy submission. Students must have a Social Security number to apply for federal aid.
  
  
• College and university forms. Some schools have their own forms that need to be completed in addition to the FAFSA. In some cases, it is these forms which initiate an application for financial aid and so it is important that they be submitted on time. These are usually included with the application for admission or may even be available on the college’s Web site.
  
  
• Parent and student tax forms. Keep these records handy and try to file early as signed photocopies will be required as part of the aid application process. If for some reason the appropriate tax forms are not available by the deadline, ask the financial aid office about the possibility of submitting an estimate. Usually, the prior year’s information will do but, since the official financial aid award will be based on the most recent tax year, it’s better to submit that if possible.
  
  
• CSS/Financial Aid PROFILE.® This form is required, in addition to the FAFSA, by over 300 colleges and private scholarship organizations. It provides more information than is required by the federal government to estimate aid eligibility. Some colleges will request the PROFILE® from all applicants, some from first-timers only, and others from only Early Decision or Early Action candidates. There is a modest fee for PROFILE® users. Get more details and file electronically at www.collegeboard.com/profile or call the College Board’s toll-free number at (800) 778-6888.
  
  
• Additionally, you may be required to submit a Divorced/Separated Parent’s Statement along with both parents’ tax returns. Colleges vary on their policies for dealing with noncustodial parents, so investigate. If the noncustodial parent is reluctant to complete forms at the request of a child or ex-spouse, the financial aid office may be willing to intercede and contact that parent directly or to waive the requirement. Don’t hesitate to contact the financial aid office for advice in dealing with parents’ information.
  
  
• A Business/Farm Supplement, along with corporate income tax returns, may be required if one or both parents own businesses or farms.

Copies of both the Divorced/Separated Parent’s Statement and the Business/Farm Supplement come with the PROFILE®.

After you complete and return the FAFSA for processing, the SAR (Student Aid Report) will be sent to you. (You’ll get it faster if you apply online.) It will show your expected family contribution using the federal calculations. This standardized information will also be forwarded to the colleges your child selects. There will be a section for corrections. Remember to follow directions carefully.

While your expected family contribution remains relatively constant wherever your child goes to school (depending on method of calculation), financial need varies depending on educational costs.

For example, assume your family’s contribution is calculated at $10,000 and two of the colleges your child is considering are College X, costing $35,000, and College Y, costing $15,000.

Financial Need at College X is equal to:
$35,000 College Costs
minus 10,000 Expected Family Contribution
________________________________________
$25,000 Financial Need

Financial Need at College Y is equal to:
$15,000 College Costs
minus 10,000 Expected Family Contribution
________________________________________
$5,000 Financial Need

Consequently, even though College X is more expensive than College Y, your expected family contribution remains constant, and assuming that both College X and College Y award your child aid to the full extent of need ($25,000 at College X and $5,000 at College Y), both will be affordable.

While your calculated financial need varies at different schools (for the purposes of awarding institutional monies which comprise the bulk of financial aid awarded by private colleges), so do the colleges’ philosophies of awarding aid.