Have you been hearing a lot about FAFSA and wondering if it's really worth all the hassle? You're not alone! This year has been especially challenging. Students are hitting roadblocks along the way, from filling out the form, waiting for it to process, and fixing any mistakes – it has been a real headache. The answer here: yes, it is worth it.
Here’s why: Filling out the FAFSA can really pay off for your future. I know it seems tough right now, but investing time and effort into your education is a smart choice. Having a college degree can really boost how much you earn. For example, in 2023, people with a bachelor’s degree earned about $1,493 a week, while those with just a high school diploma earn around $899. That difference is significant.
So, yes, even though dealing with FAFSA can feel like a big pain, it’s worth it. Your future self will thank you.
Why is the FAFSA Important
Let's talk about the FAFSA, which is the most important financial aid application for college. The application will help qualify you for financial aid and not just from the government, but the information you provide can also help qualify you for aid from states and colleges as well.
There are several types of financial aid available. Grants and scholarships are considered free money that you do not have to repay. Then there's Federal Work-Study, where you work to earn your aid. And while loans need to be repaid, with interest, they are considered financial aid. These programs are made available to students, and typically offer lower interest rates than other types of loan programs. But remember, if you're going to borrow money, make sure you know what you're signing up for. It's all about borrowing smart. And keep in mind, not all federal student loans are need-based, Direct Unsubsidized Loans are available for students who do not have financial need.
The FAFSA is Not Simplified
The FAFSA Simplification Act, which was the cause of the overhaul of the FAFSA application had the intention to “simplify” the process, however, that didn’t happen. This has been one of the most confusing and frustrating FAFSA cycles. Students are running into issues completing the form, and this may be the cause for FAFSA applications to be down over 35% when compared to the same time last year.
While the issues may seem impossible, students have been able to navigate through the application. The best resources still include the U.S. Department of Education, and your college financial aid office. While both sources may be working overtime through the issues, and you may need to wait to get answers to your questions, most issues can be resolved. And if for some reason your issue can’t be resolved, it is likely a known issue, and the U.S. Department of Education is still working through resolutions for outstanding problem.
I Won’t Qualify for Financial Aid
Many students believe that they won’t qualify for financial aid, so they typically avoid the application. However, believing that myth could be a costly mistake. While a student may not qualify for federal need-based (from the government), that doesn’t mean that a student won’t qualify for state or institutional aid. Every program has its own eligibility criteria.
Some colleges will require a student to complete a FAFSA to qualify for merit-based aid. Merit-based aid is not based on financial need, usually it’s based on a strong academic, or other ability, such as athletics, music, art, etc. In addition, some high schools may have a graduation requirement to complete the FAFSA. The reason there is such a strong push for the FAFSA, it is known that FAFSA completers are more likely to enroll in college.
Unless you are planning on paying the published sticker price, then you should consider completing the FAFSA. Even if you don’t qualify for need-based grants, you could qualify for merit-based scholarships or tuition discounts. According to a report from the Brookings Institute, it is estimated that only 16% of students at private non-profit college paid the sticker price in the 2019-2020 academic year.
Determination
Achieving higher education takes determination, and if you need financial aid to pay for college, you need to have determination to get through the financial aid application process. Keep in mind, you are applying for financial assistance, and that may take some work. You can compare it to the effort you need to put into a job to earn income. At the end of the day, you are looking for financial assistance to help you achieve your college dreams. If you let the challenges deter you into a gap year, you may not return next year.
A few weeks ago, we heard higher education industry experts testify in front of Congress. While the U.S. Department of Education did not testify, the industry experts present offered a lot of perspective. They reassured Congress the financial aid administrators are doing everything possible to work through the hurdles this year. They are working with students and families to get through the FAFSA process. There are free resources available to help. You may even want to check in with your financial aid office or local community to see if there are FAFSA Completion events. These FAFSA Completion events generally involve higher education experts offering direct assistance as you complete your FAFSA. They have worked with other families and likely can help resolve any issues you encounter.
Your dreams are worth it. If you have yet to complete your FAFSA, you can get started today.