FAFSA: Billions of federal aid dollars available for college students starting today
Current and prospective college students are able to complete the Free Application for Federal Student Aid starting on Friday. The federal government has $150 billion each year available for college students, all they have to do is apply for their fair share.
Millions of government dollars available to students are left on the table each year. North Carolina students are completing fewer applications compared to before the pandemic, and the numbers are even worse at high schools with lower-income and higher-minority populations.
Aid is handed out on a first-come, first-serve basis, which is why students looking for assistance with their college education should apply early.
There are four different types of grants available for students. Grants — in contrast to loans — are funds that the federal government gives students that they don't have to pay back.
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant
- Teacher Education Assistance for College and Higher Education Grant, which is for students who are attending undergraduate or graduate school to become a teacher. Students who accept this grant must agree to teach in a high-need field at a low-income school for at least 4 years within 8 years of graduating.
- Iraq and Afghanistan Service Grant is for students with a parent or guardian who died after the events of 9/11 as a result of military service in Iraq or Afghanistan.
Costs of a college education have skyrocketed over the past several decades. Research shows students applications declined last year, even though the coronavirus pandemic created great financial need across the country.
Many students' college plans changed during the pandemic, as families were longer able to afford a four-year college education. But those families may not know they qualify for aid and assume they won't recieve any federal assistance.
A record-low number of families filled out the FAFSA application last year, according to Sallie Mae. The majority of families who don't apply skip the application because they don't think they are eligible. Nearly 90% of all families who apply will receive aid, according to Discover Student Loans.
U.S. News and World report says the average cost of tuition and fees at a public school in America for one year is $11,631 for in-state, public schools and $28,238 for out-of-state public school students. The average cost of attending a private school for one year is nearly double that — $43, 775.
One group, myFutureNC, a nonprofit established to help increase educational attainment in the state, estimates that North Carolina students were eligible for about $107 million in aid in 2020 that they never applied for.
“The pandemic has really limited the flow of information for many students and families, but we really wan to get the word out that aid and assistance is available,” said Cris Charbonneau, director of advocacy and engagement for myFutureNC. “We are really striving to not let the circumstances of the pandemic dim these really bright futures.”
The FAFSA application does not only give students access to aid from the federal government, but could also help them get aid that comes directly from a university. Students are advised to reach out the their university's financial aid office for information about scholarship opportunities. The Department of Labor also has a list of free scholarships students can apply for.
Parents of students need to submit their Social Security number, W-2 forms, records of untaxed income and last year's tax returns. Students also have to show which schools they are interested in.
The application can be done online. Families can also download FAFSA's mobile app to submit the form.
Once the form is submitted, FAFSA will send a Student Aid Report with a summary of what aid students are eligible for.
The federal government also offers student loans — which by contrast is money awarded to students that has to be paid back. There are four different kinds of student loans available which are given to students based on financial need. There are maximum amounts each year that students can borrow from the federal government.
In America, there is nearly $1.6 trillion of unpaid federal student loans.
