FAFSA Update

Why do college students need financial aid?
In today’s world, a college education is necessary in order to obtain a well paying job and move up the corporate ladder to secure a managerial position. The days when a simple high school diploma was enough for one to become an executive at a major corporation are long gone. Today, even most entry level jobs require applicants to have a college education. A college degree not only helps you develop a deep understanding of a particular field, but also gives you the opportunity to develop the technical expertise required to succeed in the workplace. However, due to the increasing cost of college tuitions, an increasing number of students are not able to obtain higher education.  Research also indicates that over the next ten years, a shortage of college graduates could lead to a serious imbalance in the job market and adversely affect the economic condition of the country.

What types of financial assistance are offered?
In order to address this issue, the US government, in addition to a number of private organizations, has set up numerous scholarship programs, student loans and education grants. Over 300 billion dollars are awarded annually through various federal, state and local governments and through private businesses and individual donors. In fact, more than half of all college students in the United States receive some sort of financial aid during the first four years of post-secondary education. Various financial aid programs cover various amounts of tuition fees and living expenses. On the other hand, most of the students enrolled in post-graduate programs such as Master’s degrees or PhD programs obtain some level of financial support from their educational institutions or the federal government under the ‘Continued Education Program’ or the ‘Professional Development Program’.

What is FAFSA?
In order to apply for an education grant or federal student loan, students must fill out a Free Application for Federal Student Aid or FAFSA. A FAFSA can be completed and filed online or on paper and enables you to apply for thousands of student aid programs. More than 25 federal agencies around the country such as NASA and the Department of Education award scholarships to almost 7 million students every single year and a FAFSA application is a great way to stay in the loop about current or future financial aid programs. The FAFSA website maintains a detailed list of such programs as well as a list of accredited universities, community colleges and vocational institutes which are covered by education grant programs.

How do I apply through a FAFSA?
In order to apply for financial aid through a FAFSA, you must be a US citizen with a valid social security number (SSN). You must also have a high school diploma or its equivalent general education development (GED) certificate. In case you do not have either of the two, a special test called the ‘Ability to Benefit’ test is administered by the Department of Education at predetermined dates throughout the year. Before you can apply for financial aid, you must be enrolled in a college program or have an acceptance letter from an accredited university. All in all, the Free Application for Federal Student Aid has truly revolutionized the process by which the government awards financial aid, and has enabled more students from under-privileged background to fulfill their dreams of obtaining a college education