How the College Financial Aid Process Works

In these tough financial times it is becoming harder and harder for parents and students to afford college tuition.  I’m sure you have heard of college financial aid, but you may be unaware of how the process works.  If you choose to go to college but can’t afford it, here is a brief introduction to how the financial aid process works.

Just like any other loan and all things seeming to do with college, the process begins with the dreaded paperwork.  The form you will want to get you hands on is called the “Free Application for Federal Student Aid” or FAFSA.  This form is available for completion by your parents after January 1st of your senior year of high school.  Visit the guidance office of your school or you can find the form online at www.fafsa.ed.gov.

The FAFSA is used to determine your family’s need for financial aid.  It is basically a questionnaire that attempts to gather comprehensive financial information about you and your family.  If you are accepted after a thorough review of your questionnaire your file is turned over to the financial aid office aka FAO.  The FAO determines how much they think you can afford to pay and puts together a package attempting to provide you with the difference.  They are trying to fill the gap between the school’s cost and what your family can afford.

The amount the FAO expects you to pay is called the “expected family contribution” or EFC.  This number should not be altered by the tuition cost of the chosen school.  That is to say that whether you choose a school that cost thousands of dollars a year or tens of thousands of dollars a year your EFC should remain unchanged.

Although it may look like you can’t afford to go to college, there may be hope.  Look into financial aid.  Get your hands on the FAFSA and have your parents fill it out.  There is always a way to get things done, some just take a little more effort than others.