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If you’re interested in receiving financial aid for college, it’s essential that you start with the basics--and that means completing your FAFSA (Free Application for Federal Student Aid) each year you intend to apply for aid. Although there are other ways to find assistance, filling out your FAFSA each year is a convenient way to see what grants, scholarships, loans, and work-study opportunities you qualify for. However, filling out the form--whether for the first time or as a renewal--can seem daunting. Not to worry, we’ve come up with a few FAFSA tips and tricks to easily (and correctly) complete your 2021-2022 form.
Keep reading because in this article we’re going to cover:
- Top FAFSA tips and tricks
- Common mistakes to avoid when filling out your FAFSA form
Tips and Tricks for Successfully Completing Your 2021-2022 FAFSA Form
Complete your FAFSA form with ease when you follow these tips
While filling out your FAFSA form can seem intimidating, it really isn’t--but it’s definitely worth your time. In order to make things a little easier for you, we’ve decided to make a list of some of the things to remember as you start filling out your form for the 2021-2022 academic year.
Take advantage of a practice FAFSA
They say that practice makes perfect, right? So what better way to be prepared to fill out your real FAFSA form then by doing a practice run first. Before you start filling out your practice form, read through the checklist of items from the FAFSA worksheet that you’ll need to have on hand to properly complete it. You will also need to determine what your status is (dependent or non-dependent student) and apply for your federal ID PIN in order to complete your FAFSA application online. Then fill out all the information as if you were actually applying, pulling from your family’s income and assets information.
Pro tip: When you go to apply for real, you can use this practice form as a guide to enter your information, making the process that much quicker!
Find ways to reduce your adjusted gross income
The higher your family’s adjusted gross income (AGI), the less financial aid you will likely qualify for. AGI is calculated by taking your family’s taxable income and subtracting it from any adjustments accounted for on the tax form. Since your family probably isn’t interested in reducing their income, you’ll have to find ways to increase your family’s qualifying adjustments. Perhaps this is a good opportunity to enlist the help of an accountant or financial advisor to help you find deductions that you didn’t even know that you qualified for!
Move students’ liquid assets
One of the best ways to reduce your family’s expected family contribution (EFC) is to move any assets you as the student have to the accounts of your parents. Because parents are only expected to contribute 5.64 percent of their assets towards paying for college, by moving any liquid assets the student has, it could reduce the amount your family is expected to pay. If the student has any assets, consider using them to pay off debts such as a mortgage or credit cards, which reduces reportable assets and can help you qualify for more student financial aid.
Have all your information ready
We can’t stress this enough--it’s important to gather all your documents and information before you start filing out the FAFSA form. No one wants to start filling out the form only to realize they have no idea where the tax forms are! This is why it’s important to take the time before you fill out the form to gather all the documents you need, including:
- Social security numbers of the student and parents
- Federal student ID PIN
- Federal tax information (such as W2s)
- Records of untaxed income
- Additional financial information (investments, savings accounts)
Once you’ve got all these together, you should be ready to start your form.
Apply each year
Although it would be nice to fill out the FAFSA form once and be done, there would be no way to make any adjustments to your information! This is why it’s essential to make sure you fill out the FAFSA form each year you intend to apply for financial aid. If you’ve filled out the FAFSA form the previous academic year, you can opt to do a renewal of your FAFSA instead--so no need to start a completely new application. Simply update any information on the form that has changed in the past year.
Pro tip: even if your financial situation has not changed, you still need to apply each year in order to be considered for financial aid!
Apply early
The early bird gets the worm right? The same is true for completing your FAFSA form. The FAFSA opens on October 1st, and although the next academic year might be the furthest thing from your mind, try to complete your form as soon as possible. Not only will it get it off your to-do list, but did you know that by applying early you could possibly qualify for additional financial aid? That’s right, in some circumstances aid is awarded as a first come first serve basis, meaning the earlier you apply, the more aid you could potentially receive!
Pro tip: Although you should apply early, make sure you’re also aware of the federal deadline of June 30th. Double check with your state and school to see if they have any earlier deadlines you should be aware of as well.
Common FAFSA Mistakes to Avoid
Avoid these FAFSA mistakes and it’ll be smooth sailing
Now that you know the best ways to ensure you get the most financial aid that you qualify for, it’s time to discuss some of things to avoid as you complete your FAFSA form.
Don’t assume you can’t apply
One of the biggest mistakes you can make is by not completing the FAFSA form at all! Even if you don’t think your family’s financial situation qualifies you financial aid, apply anyway. If you’re interested in going to college, applying for financial aid via the FAFSA is a good decision. There may be grants, scholarships, or other options that you don’t even know that you qualify for. We recommend every student fills out the form, because you never know what financial aid opportunities might pop up.
Leaving blank fields
Although this may seem like it’s self-explanatory, there are still many FAFSA applications received that have blank fields. Leaving a line item blank can cause miscalculations, or worse can end up causing your application to be rejected. If there is a field that does not apply to your situation, or the answer is $0, make sure to mark in a zero!
Incorrectly listing parents’ marital status
If your parents both live in the same household, you’ll need to list both parents. If your parents have recently divorced or one parent no longer lives in the same household as you, it’s also important that this information is correct. If a parent has remarried, you’ll need to ensure you list the information of the step parent as well. The amount of aid you qualify for can change based on whether or not you’re living with both parents, or just one parent.
Entering the wrong federal income tax amount or adjusted gross income
You can find the amount of income tax paid on your income tax returns, and not on the W2 statements, so make sure you are entering the right amount. It is also crucial to not assume that the AGI is equal to the total income from working, as they could in fact be different.
Not applying early!
We’ll say it again because it really is important! Make sure you apply for financial aid with the FAFSA as early as you can. You never know how much additional aid that you qualify for unless you complete it and submit as soon as you can. The hardest part is getting all the necessary documents and information together, and once you’ve done that, you can sit down to complete the form. If you do a practice form before hand (or you’re doing a renewal) the process can move along even quicker.
There you have it, our top FAFSA tips and tricks for the 2021-2022 academic year. Make sure to follow these steps (and avoid the common mistakes) and you’ll be on your way to getting the most financial aid you qualify for.
