Subscribe in a reader08.03.07 | Why is FAFSA Important?
Because it is nearing the end of the summer, students are scrambling to find ways to pay for school. I received a phone call a few minutes ago from a girl who needed a loan asap! Here is a re-creation of our conversation:
Caller: “Hello, my tuition is due August 15th, and I am short $2,000. If I can’t come up with the money, my school will drop my classes. Can you help me?”
Me: “Sure, have you already filed a FAFSA for this school year”
Caller: “What is a FAFSA?”
Me: “FAFSA is the federal form that all students should fill out. It is free to do, and it determines your eligibility for federal grants, and all federal student loans. You cannot take out a federal loan unless you have a FAFSA on file, which is why it is really important to fill out this form.”
Caller: “Ok, so I fill this form out, and then I will be able to take out a Stafford Loan.”
Me: “Well not exactly. Once the FAFSA is filled out, your college receives a Student Aid Report from the government. On that SAR report, it will say whether you are eligible for the Stafford Loan (which is based on your financial need). If you are eligible to receive the Stafford Loan, then you would just fill out a Stafford Loan Promissory Note in order to receive the funds. This whole process can take over a month to complete, from start to finish. ”
Caller: “Oh I see, so it is probably too late at this point in time to do the FAFSA and get the Stafford Loan?” Me: “Most likely, yes. Check with your school to see if they will still accept a FAFSA for Fall semester. If they say no, then you can apply for an Act Education Loan; which does not require you to have a FAFSA filed. You can get those funds in 3-5 days.”
This is a conversation I have almost daily. Remember to file your FAFSA, and then renew it every school year. That way you won’t be left in a jam.
For more information, visit:
Stafford Loans
Scholarships
FAFSA help
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