The FAFSA Helps Compute Your EEC
Once you have filled out and submitted your FAFSA along with your PIN, it will be reviewed by the Department of Education staff. They will then send you and your school information on your family size, income and your EFC (Expected Family Contribution). This is the amount of money they expect you or your parents to contribute toward your educational expenses, based on your income.
Pell Grants
If you fall below certain income guidelines, you will receive a Pell Grant for the cost of your tuition. Pell Grants do not have to be repaid. You are more likely to receive a Pell Grant if you have dependent children or a dependent spouse and are only working part time.
Subsidized and Unsubsidized Loans
Even if your income is too high to receive a Pell Grant or other grant, you have the option of getting subsidized or unsubsidized loans. Subsidized loans are better because the government is basically paying the interest on those loans during the time you are attending school. Unsubsidized loans will build up (accrue) interest during your time in school, and when you graduate, they will stack that interest onto the original loan amount (capitalization), making your final loan amount larger.
Military or Special Status
Other information in the FAFSA that can help you get money for school is if you are retired military, a veteran or even the spouse or dependent of a veteran. There is also special federal funding available for dependent children of farmers, and even students who are first-generation college students.
Distribution of Funds
Instead of sending you a check in the mail, the Department of Education sends the information from your FAFSA directly to your school. Your school then sends them information about your tuition, costs and living expenses. Based on how much it costs you to attend school, the Department of Education will then send financial aid money directly to the school.
Once the school has the funds, they are legally obligated to distribute any excess to you within a certain number of days of receiving the funds. This is how some students are able to pay for living off campus using their federal student loan money.
In summary, the FAFSA combines information about your financial situation and information about how much it will cost you to attend college, and it distributes the money to allow you to attend school. Do remember that, if you take out student loans to pay for school, they have to be repaid.
 | By following a few free FAFSA tips, you may be able to increase your chances at getting grants and loans. When you fill out the Free Application for Federal Student Financial Aid (FAFSA), you are presenting your financial information to be reviewed by colleges. |
It's not difficult to apply for financial aid for college. Once you know the basic steps to getting the money that you need for school, it will be easy to get everything done on time. If you follow these steps, you'll be able to take advantage of different types of financial assistance available. |
What does FAFSA stand for? "FAFSA" means "Free Application for Federal Student Aid," and it has been helping college students get financial aid since 1992. |
If you have filled out the Free Application for Federal Student Aid, or FAFSA, you may have some questions about what happens next. Read on to learn what to expect after you fill out your FAFSA. |
Your FAFSA application must be submitted after January 1 of the year in which you will require financial aid. Submitting as close as possible to that date will increase your chances of fast approval and will demonstrate your commitment to gaining a higher education. |
