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Article #361: How Free is the FAFSA?

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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 senior
financial aid programs, is "Free". year is too late to learn how much
However, the FAFSA costs many families a college will cost so as to 'plan' for
lot of money in lost aid. college costs - and the increasing gap
The FAFSA is a 128 question form that is between aid awarded and actual need all
used to determine a family's eligibility 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 from
Contribution, or EFC. The U.S. Department a very large disconnect between what they
of Education claims that the FAFSA takes see as their ability to pay and what the
one hour to complete. How complicated is FAFSA formula determines they should be
the form? According to the Department of able to afford, even if the form is done
Education, approximately 80% of the forms correctly and on time. Many families
submitted for processing are done either don't bother to apply, given the
incorrectly or are incomplete. After confusion in the process, or do file the
submission, families receive a Student FAFSA and are shocked by their EFC. How,
Aid Report and are asked to confirm their for example, is a family earning $75,000
answers and make corrections. Assuming per year supposed to pay $20,000 per year
the family notices errors or omissions for college?
and corrects these, the corrections are Many upper income families do not fill
then 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 on of aid, even if it's just a loan package,
a first-come, first-served basis. by going through the process.
Processing and correcting errors costs The fact that many families of all income
families money because there is less aid 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 money dollars per year in college costs and/or
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 U.S.
to complete, how does that compare to the Secretary of Education's Commission on
much more familiar tax forms? Most 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 counterproductive
1040EZ asks 37 questions; Form 1040A asks financial aid system for students should
83 questions. If we use U.S. Department be restructured and the current federal
of Education math, that means that the aid form (the Free Application for
1040EZ should take 17 minutes to complete Federal Student Aid, or FAFSA) should be
and the 1040A should only take 39 eliminated..." We couldn't agree more,
minutes. The Internal Revenue Service, but don't count on a massive overhaul
however, suggests that the forms take 8 anytime soon. While you wait for systemic
and 13 hours to complete, respectively. change, be advised to start the financial
For lower income families the complexity aid process as early as possible. And
of the financial aid process can be remember to set aside more than an hour
overwhelming as by and large there is to fill out the (somewhat free) FAFSA.






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