The bad news is that college costs are rising each year, and it can cost up to $40,000 annually to attend certain schools. The good news is that more than 60% of today’s college students are receiving financial aid, making their dreams of going to college come true.
Each year, the federal government requires those who want federally funded financial aid to complete the Free Application for Federal Student Aid form, or FAFSA. The purpose of the FAFSA is to collect information on a family's annual income and assets. The student decides which college or colleges should be notified of the results of the analysis. Upon receipt of the information from the processor, the college will make a financial aid offer to the student.
Filling out the FAFSA is the first step in the college financial aid process. Federal student financial aid, such as the Pell Grant, student loans, and college work-study funds are all based upon the Student Aid Report that you will receive after you have completed the FAFSA (online or on paper). In addition, most states and schools use FAFSA information to award their financial aid.