<p>I've been hearing a lot about FAFSA, but can someone please explain how it works? How much money does someone typically receive? Any sort of feedback would be great and very helpful!</p>
<p>FAFSA is just an online form the student and parents fill out with the family’s financial information in order to determine whether the student is eligible for federal grants (Pell) or federally subsidized loans. You have to fill it out to apply for unsubsidized Stafford or parental PLUS loans also, if your family income is too high to qualify for Pell or subsidized loans.</p>
<p>The act of filling out and submitting the FAFSA itself does not “give” anyone any money. It is a rough indicator of how much a family might be expected to pay at a school that meets full need through loans and grants (most schools don’t totally meet need). The FAFSA will generate a figure, the EFC or estimated family contribution, which is the annual amount the family is deemed capable of contributing to the student’s college expenses. This number is based largely on current family income, so it will vary widely. There is no “typical” figure.</p>
<p>There is NO “typical amount” that students receive.</p>
<p>The FAFSA is a financial aid application form. It is primarily used to determine eligibility for federally funded need based aid. Some schools,also use it to help determine institutional funding.</p>
<p>The parents and the student enter income and asset information. Based on this information, an Expected Family Contribution is calculated. This EFC should be viewed as a MINIMUM you will be,expected to pay for college for the year. Most schools do not meet full need.</p>
<p>If your parents are married, both parents incomes and assets are required on the FAFSA. Your student income and assets are required also. In some cases where parent income is VERY low, assets are not included. But that is for very low incomes. </p>
<p>If your parents are separated or divorced, your custodial parent (the parent you live with the most) and their spouse (if they are remarried) report income and assets. Yours are reported as well.</p>
<p>If your EFC exceeds the cost of attending the college, you would not receive aid. Because most schools don’t meet full need, you might not get any aid anyway.</p>
<p>BUT anyone completing the FAFSA can get the Direct Loan.</p>
<p>The FAFSA calculation is heavily driven by parent income.</p>
<p>And every college has its own way of awarding institutional aid (money awarded by the colleges, not the federal government).</p>
<p>Important! Every college has a Net Price Calculator the website. You can take YOUR family’s financial information and enter it into three NPC to get an estimate of your potential costs at each college.</p>
<p>thanks, your answer’s been much help!!</p>
<p>FAFSA is the application for federal grants and loans. If you go to FAFSA.gov you can read the information that is provided. The form also provides an EFC, which is the estimated family contribution - what the powers that be figure your family can afford to pay (it’s usually higher than what the family thinks it can afford). It also determines whether or not you qualify for federal work study - money the school receives from the government to pay you to work part-time on campus to help pay for school.</p>
<p>Many schools use the data from FAFSA to determine what financial aid the school can provide for you, and, if the school has funds available, whether you qualify for school-funded work study. </p>
<p>Some schools require the PROFILE, which asks more detailed information about income and assets, and use that information to award financial assistance.</p>
<p>Be aware that the EFC is what the government thinks you can afford to pay. Some people misinterpret that to mean that that is all you are expected to pay. Colleges will usually charge more than that, especially schools that do not promise to “meet need” or have generous financial aid money available to give out.</p>
<p>You complete FAFSA and select the schools you want the information sent to. FAFSA calculate an EFC (estimated family contribution, which is a complete misnomer) based on your information and sends that to the schools you have selected.</p>
<p>The school will put together a financial aid offer based on your EFC. There is no typical amount they will offer as the EFC is based on your parents and your income and assets. The higher your EFC, the less aid you will be eligible for. So some students may be eligible for need based aid while others may not. </p>
<p>Federal aid is very limited. The main federal grant, the Pell, requires a low EFC of 0 to around 5000. The maximum Pell is around $5750 and requires a 0 EFC. As the EFC goes up, pell eligibility goes down almost $ for $. The maximum federal direct loans for a freshman is $5500. Even if you have no need based on the EFC, you are eligible for the loans. If you have unmet need, up to $3500 may be subsidized.</p>
<p>Other federal aid for low EFC students includes the SEOG grant, Perkins loans and Work Study. These have very limited funding and schools have more students that qualify than they have funds.</p>
<p>Other aid will depend on your State and your school. Most schools do not promise to meet full need. Those that do usually require additional information such as CSS Profile for their own institutional aid.</p>