What is a FAFSA?
All applicants who are U.S. citizens or permanent residents, even those who don’t plan on taking out a student loan, should submit a Free Application for Federal Student Aid (FAFSA) if they plan to apply for any financial support programs. The FAFSA is used to compile a need analysis and to determine all financial support packages, including grants, fellowships, and work-study, as well as loans.
All college students are expected to contribute towards their education costs. How much you and your family will be expected to contribute depends on your financial situation — and is what’s called your Expected Family Contribution (EFC). The Free Application for Federal Student Aid (FAFSA) is the form the U.S. Department of Education (ED) requires to determine your Expected Family Contribution (EFC). The government conducts a “need analysis” based on financial information, such as income, assets, and other family information, which you (and your parents if you are a dependent student) will be asked to provide. Your application is examined by a federal processor and the results are sent by computer to the financial aid offices of the colleges you’ve chosen. The FAFSA is the application most colleges use to determine eligibility for federal, state, and college-sponsored financial aid, including grants, educational loans, and work-study programs.
