| The first word on the Free Application | | | | little in the way of coaching or |
| for Federal Student Aid, the form all | | | | assistance for these families. The |
| students must use to apply for federal | | | | complexity, the timing - spring of |
| financial aid programs, is "Free". | | | | senior year is too late to learn how |
| However, the FAFSA costs many families a | | | | much college will cost so as to 'plan' |
| lot of money in lost aid. | | | | for college costs - and the increasing |
| The FAFSA is a 128 question form that is | | | | gap between aid awarded and actual need |
| used to determine a family's eligibility | | | | all prevent lower income students from |
| for need-based financial aid and results | | | | getting a college degree. |
| in a number called the Estimated Family | | | | Middle income families are suffering |
| Contribution, or EFC. The U.S. | | | | from a very large disconnect between |
| Department of Education claims that the | | | | what they see as their ability to pay |
| FAFSA takes one hour to complete. How | | | | and what the FAFSA formula determines |
| complicated is the form? According to | | | | they should be able to afford, even if |
| the Department of Education, | | | | the form is done correctly and on time. |
| approximately 80% of the forms submitted | | | | Many families either don't bother to |
| for processing are done incorrectly or | | | | apply, given the confusion in the |
| are incomplete. After submission, | | | | process, or do file the FAFSA and are |
| families receive a Student Aid Report | | | | shocked by their EFC. How, for example, |
| and are asked to confirm their answers | | | | is a family earning $75,000 per year |
| and make corrections. Assuming the | | | | supposed to pay $20,000 per year for |
| family notices errors or omissions and | | | | college? |
| corrects these, the corrections are then | | | | Many upper income families do not fill |
| resubmitted. Usually, each time the | | | | out the FAFSA because they just "know" |
| process goes from the family to the | | | | they will not qualify for aid, setting |
| government back to the family one can | | | | aside the hassle factor. However, almost |
| expect a four to six week processing | | | | every family gets an offer of some kind |
| time. Federal financial aid is awarded | | | | of aid, even if it's just a loan |
| on a first-come, first-served basis. | | | | package, by going through the process. |
| Processing and correcting errors costs | | | | The fact that many families of all |
| families money because there is less aid | | | | income levels don't apply because of the |
| available the longer it takes to submit | | | | confusion, misinformation, and hassle of |
| correct aid reports to the government, | | | | the forms and processes is unfortunate, |
| who then passes the information along to | | | | and costs families many thousands of |
| the colleges who distribute federal | | | | dollars per year in college costs and/or |
| money in the form of loans and grants. | | | | missed opportunities. |
| If the 128 question FAFSA takes one hour | | | | In a recent draft of a report by the |
| to complete, how does that compare to | | | | U.S. Secretary of Education's Commission |
| the much more familiar tax forms? Most | | | | on the Future of Higher Education, the |
| families file either the 1040A or the | | | | commission notes that "The existing |
| 1040EZ for federal tax purposes. Form | | | | convoluted, complex and |
| 1040EZ asks 37 questions; Form 1040A | | | | counterproductive financial aid system |
| asks 83 questions. If we use U.S. | | | | for students should be restructured and |
| Department of Education math, that means | | | | the current federal aid form (the Free |
| that the 1040EZ should take 17 minutes | | | | Application for Federal Student Aid, or |
| to complete and the 1040A should only | | | | FAFSA) should be eliminated..." We |
| take 39 minutes. The Internal Revenue | | | | couldn't agree more, but don't count on |
| Service, however, suggests that the | | | | a massive overhaul anytime soon. While |
| forms take 8 and 13 hours to complete, | | | | you wait for systemic change, be advised |
| respectively. | | | | to start the financial aid process as |
| For lower income families the complexity | | | | early as possible. And remember to set |
| of the financial aid process can be | | | | aside more than an hour to fill out the |
| overwhelming as by and large there is | | | | (somewhat free) FAFSA. |