More than $122 billion in college financial aid was awarded last academic year. For high-school students planning to become college freshmen in the fall of 2005, January marks the start of the process of getting money to pay for college.
January is the first month that the Application for Federal Student Aid (FAFSA) can be submitted. The FAFSA is a student's starting point for applying to nearly all student financial assistance programs. Students must complete this application to receive any federal student aid. Additionally, many schools use the FAFSA as part of their application for non-federal aid.
Money for college comes in the form of grants, scholarships, work-study programs, and student loans. Some of this money is need based, meaning that individuals have to meet specific financial criteria to receive it; other types, such as student loans, are available to a wider population.
"When it comes to getting money to pay for college, the early bird gets the worm," said Martha Holler, financial aid expert with Sallie Mae, the nation's leading paying-for-college company. "More than 13 millions students apply for money for college each year. Apply early, students, and put yourself at the head of the line. The closer to January 1 a family files the application, the better off you will be."
The FAFSA form is available through high school guidance offices, local libraries or online. Students attending college next fall may submit the FAFSA anytime after January 1, and before the college's application deadline. Once the FAFSA is finalized, individuals should contact the schools they are interested in to determine if additional financial aid forms need to be completed.
"Throughout the entire process, families need to stay organized," added Holler. "Parents should work with their children to set up a file with information about all financial aid programs and keep financial documents, such as last year's tax forms and recent bank statements, on hand. Consider using a calendar to outline when applications for college, scholarships and financial aid are due, and keep a copy of every form you submit."