FAFSA is the Free Application for Federal Student Aid, and it is a required application for students who want to apply for federal and state financial aid and college scholarships. Even if the student does not qualify for federal or state aid, many colleges and universities, especially public institutions, require the the FAFSA for students interested in receiving college scholarships. Students who want to apply for financial aid or college scholarships must submit the FAFSA every year they are in college if they want to be considered for such awards.

Federal and state aid is designed to assist students with educational expenses when their resources do not cover the costs of attending an institution. A student’s financial need is the difference between the student’s educational expenses and the amount of money the family is expected to contribute. In general terms, the formula is:

School costs – Expected Family Contribution – Financial Aid = Financial Need.

There are three types of financial aid. The first is a grant, or college scholarship, which is a gift of money that does not have to be repaid. The second is a loan. A loan allows the student to borrow the money to cover schoool expenses and must be repaid. Usually interest added to the loan. Some loans are subsidized. This means the student does not have to repay the loan and interest until 6 months after the completion of college. A non-subsidized loan is repaid after the student graduates from college. However, the student is responsible for paying the interest payments from the beginning of the loan. The third type of financial aid is work. This may be set up through a college or with a local, independent business. Employment during the school year helps the student earn money to pay for college expenses.

Students sometimes ask if they need to file the FAFSA and the answer is yes. If a student wants to be considered for college scholarships or federal and state loads they must fill file the FAFSA. There are college scholarships available to match academic ability, talents, interests, diversity, leadership and extracurricular activity participation. There are also many free resources to help students find college scholarships. However, the first step to receiving scholarships and any other form of financial aid is the FAFSA.