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How Free is the FAFSA?

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



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