Addressing Financial Aid Myths

Have you heard that applying for financial aid isn’t worth it because your parents earn too much or because it takes too long to complete? Don’t be tempted by these common myths to skip completing the Free Application for Federal Student Aid (FAFSA). You could be passing up free money. And that’s the last thing you want to do when it comes to paying for college.

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Financial Aid Myth: You need to have your taxes filed before starting the FAFSA.

The FAFSA now requires tax information from the “prior prior” tax year, so the deadline for filing the required taxes is the April before completing the current FAFSA. If you or your parents missed that tax filing deadline and you still need to file taxes, you should estimate tax and income information for the FAFSA and correct that information by logging in and updating your FAFSA after filing the appropriate tax return. For help with questions about required income information, call (800) FED-AID.

Financial Aid Myth: You won’t receive financial aid because of how much money your parents earn.

Income is not the only determining factor when it comes to whether or not you’re eligible for federal student aid. And there is no income level that automatically disqualifies you for aid. Taking the time to complete the FAFSA is the only way to qualify for federal student aid and you won’t know if you qualify until you do that step, so completing the FAFSA every year you are in school is important.

Also, did you know that the FAFSA is used for more than just federal financial aid? State and school aid is also awarded based on your FAFSA results. If you don’t complete the FAFSA, you could also be missing out on these other sources of financial aid.

Financial Aid Myth: The FAFSA is difficult to complete.

The FAFSA has changed a lot since it was first introduced, and the application is revised often to make the process smoother. The online process uses logic to limit questions to ones that are relevant and completing it online instead of filling out a paper application lessens the chance for mistakes. According to the federal government, completing the FAFSA now takes less than 21 minutes on average. That’s not too bad if the outcome is grants, scholarships and other funds to help lower your college expenses, is it?

Financial Aid Myth: You only need to complete the FAFSA once.

If you complete the FAFSA before starting college, you may think you don’t need to file it ever again. But you should file the FAFSA every year as soon after Oct. 1 as possible if you intend to enroll in classes during the next academic year. This is especially important if your family’s circumstances change because you may be eligible for new or more aid next year. Even if there are no major changes to your family, though, other factors such as how financial need is calculated may mean you are eligible for different options next year. And, once you complete the FAFSA the first time, it will take even less time to complete the following years.

Financial Aid Myth: Your parents are not supporting you financially in college so you don’t have to include their information on the FAFSA.

Unfortunately you may still be considered a dependent student for federal student aid purposes, even if you are paying for all your college expenses yourself. You will need to answer questions in the FAFSA to determine if you are considered a dependent student or an independent student. If you are considered a dependent student, you will need to report your parents’ information on the FAFSA. If you are unsure how what type of student you are, contact your college or university’s financial aid office for assistance.

By: Iowa Student Loan