For many American students, finding the right financial aid to support themselves through college can feel overwhelming.
One of the most important acronyms you’ll encounter throughout this process is FAFSA.
But what does FAFSA stand for, and how does it play a role in financing your education?
What Does FAFSA Stand For?
FAFSA stands for Free Application for Federal Student Aid.
It’s a form administered by the U.S. Department of Education that determines your eligibility for various federal financial aid programs.
Completing the FAFSA is necessary for accessing grants, work-study programs, and federal student loans, some of the most important financial resources available to college students.
What is FAFSA?
The FAFSA is essentially a gateway to federal financial aid.
By filling out this form, you provide the Department of Education with the necessary information to assess your financial need.
This information includes your income, assets, family size, and the schools you plan to attend.
Based on this data, the Department of Education calculates your Expected Family Contribution (EFC).
Your EFC represents the amount of money your family is expected to contribute towards your college education.
The lower your EFC, the greater your financial need, and consequently, the more financial aid you may be eligible to receive.
Types of federal financial aid through FAFSA
Here are the different types of federal financial aid you can qualify for through FAFSA:
- Federal Grants: These are need-based awards that don’t require repayment. Examples include Pell Grants and Supplemental Educational Opportunity Grants (SEOG).
- Federal Work-Study: This program allows you to earn money through part-time jobs on campus or with approved employers to help you cover educational expenses.
- Federal Direct Student Loans: These are low-interest loans borrowed from the government to pay for college. Unlike grants, they need to be repaid after graduation.
It’s important to remember that FAFSA is just the first step.
After submitting your application, you’ll receive a Student Aid Report (SAR) summarizing the information you provided and your estimated EFC.
You can then use this information to explore additional financial aid options offered by individual schools and through scholarships and grants from private organizations.
Is FAFSA for Only US Citizens?
No, U.S. citizenship is not a requirement to complete the FAFSA.
However, eligibility for federal financial aid programs determined through FAFSA is generally limited to certain categories of non-citizens.
These categories include:
- Permanent residents with a Green Card
- Refugees
- Asylees
- Individuals granted Deferred Action for Childhood Arrivals (DACA) status
If you fall under one of these categories, you can still submit the FAFSA to see if you qualify for any federal aid programs.
It’s important to consult the Department of Education’s website or contact a financial aid advisor at your school for specific details about your eligibility.