3 Types of FAFSA Deadlines You Should Pay Attention To

Sample FAFSA Deadlines

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Ah, deadlines. The sworn enemy of students across the nation. When you’re busy with classes, extracurricular activities, and a social life in whatever time you’ve got left, it’s easy to lose track and let due dates start whooshing by. All of a sudden, your U.S. history paper is due at midnight, and you still don’t know Madison from a minuteman. We get it.

Nevertheless, we’re here to point out a few critical deadlines that you really shouldn’t miss: those to do with the Free Application for Federal Student Aid (FAFSA®). By submitting your FAFSA late, you might be forfeiting big money that can help you pay for college. Luckily for you, you’ve got just three types of deadlines to stay on top of. Now if only your Founding Father flashcards were that simple.

Here are those three deadlines:

  1. The College Deadline

The first type of deadline comes from colleges themselves, and—spoiler alert—it’s typically pretty early. These deadlines vary from school to school, but they usually come well before the academic year starts, many in the neighborhood of early spring. If you’re applying to multiple colleges, be sure to look up each school’s FAFSA deadline and apply by the earliest one.

Many of these FAFSA due dates are priority deadlines. This means that you need to get your FAFSA in by that date to be considered for the most money. Many colleges have this date clearly marked on their financial aid pages. If you can’t find it, a call to the college’s financial aid office never goes amiss.

  1. The State Deadline

The second deadline is determined by your home state. This deadline varies by state and can be as early as February 15 of a given year’s FAFSA application cycle (What’s good, Connecticut?). Some states have suggested deadlines to make sure you get priority consideration for college money, and some just want you to get the FAFSA in as soon as you can. States often award aid until they run out of money—first come, first served—so apply early.

You can check the deadline tool at fafsa.gov to see what the deal is in your state. You can also find that state-specific information on the paper or PDF FAFSA. In many cases, it turns out that state and school deadlines occur before you’ve even filed your taxes. If that’s the case, learn how to submit your FAFSA if you haven’t filed taxes yet.

  1. The Federal Deadline

This last deadline comes from us, the Department of Education, aka the FAFSA folks. This one is pretty low-pressure. Our only time constraint is that each year’s FAFSA becomes unavailable on June 30 at the end of the academic year it applies to.

That means that the 2016–17 FAFSA (which became available Jan. 1, 2016) will disappear from fafsa.gov on June 30, 2017, because that’s the end of the 2016–17 school year. That’s right; you can technically go through your entire year at college before accessing the FAFSA. However, a few federal student aid programs have limited funds, so be sure to apply as soon as you can. Also, as we said, earlier deadlines from states and colleges make waiting a bad idea.


Why so many deadlines?

All these entities award their financial aid money differently and at different times. What they all have in common, though, is that they use the FAFSA to assess eligibility for their aid programs. So when a college wants to get its aid squared away before the academic year starts, it needs your FAFSA to make that happen. If you want in on that college money, you need to help the college out by getting your information in by its deadline. Same goes for state aid programs. Additionally, many outside scholarship programs need to see your FAFSA before they consider your eligibility for their money. If you’re applying for scholarships, you need to stay on top of those deadlines, too.

What happens if I miss the deadlines?

Don’t miss the deadlines. Plan to get your FAFSA in by the earliest of all the deadlines for your best crack at college money. By missing deadlines, you take yourself out of the running for money you might otherwise get. Some states and colleges continue awarding aid to FAFSA latecomers, but your chances get much slimmer, and the payout is often less if you do get aid. It’s better just not to miss the deadlines.

If you miss the end-of-June federal deadline, you’re no longer eligible to submit that year’s FAFSA. Did we mention not to miss the deadlines?

Across the board, the motto really is “the sooner the better.” So put off the procrastinating until tomorrow. Apply by the earliest deadline. Get your FAFSA done today!

Drew Goins is a senior journalism major at the University of North Carolina. He’s also an intern with the U.S. Department of Education’s Federal Student Aid office. Likes: politics, language, good puns. Dislikes: mainly kale.

Parents: Tips to Help Your Child Complete the 2016–17 FAFSA

2016-17 FAFSA Tips for Parents
If you’re a parent of a college-bound child, the financial aid process can seem a bit overwhelming. Who’s considered the parent? Who do you include in household size? How do assets and tax filing fit into the process? Does this have to be done every year? Here are some common questions that parents have when helping their children prepare for and pay for college or career school:

Does my child need to provide my information on the FAFSA?

Your child’s dependency status determines whose information must be reported on the FAFSA. Even if your child lives on his own, files his own taxes, and supports himself, he may still be considered a dependent student for federal student aid purposes. If your child was born on or after January 1, 1993, then he or she is most likely considered a dependent student and will need to include your information on the Free Application for Federal Student Aid (FAFSA®).

Why does my child need to provide my information on the FAFSA?

Our dependency guidelines are determined by Congress and are different from those of the IRS. If your child is considered a dependent student, it doesn’t mean you, the parent(s), are required to pay anything toward your child’s education; this is just a way of looking at everyone in a consistent manner.

Which parent’s information should I include when completing the FAFSA?

If your child needs to report parent information, here are some guidelines to help.

Who's My Parent When I Fill Out My FAFSA? Graphic

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Who’s considered part of the household?

When completing your child’s FAFSA, your household size should include parents, any dependent student(s), and any other child who lives at home and receives more than half of their support from you. Also include any people who are not your children but who live with you and for whom you provide more than half of their support.

Do we need to wait to apply until I file my income taxes?

You do not need to wait until you file your federal tax return. Deadlines in some states are before the tax filing deadline so you’ll want to ensure your child fills out his or her FAFSA as soon as possible to maximize financial aid. If you haven’t filed your taxes by the time your child completes the FAFSA, you can estimate amounts based on the previous year if nothing has drastically changed. After you file your taxes, you’ll need to log back in to the FAFSA and correct any estimated information. If you’ve already filed your taxes, you can use the IRS Data Retrieval Tool to automatically pull in your tax information directly from the IRS into the FAFSA. The IRS Data Retrieval Tool will be available February 7, 2016.

Do I need to do this every year?

Yes, you and your child need to complete the FAFSA each year in order for your child to be considered for federal student aid. The good news is that each subsequent year you can use the Renewal Application option so you only have to update information that has changed from the previous year!

What else do I need to know before I begin?

You and your child will each need to get an FSA ID, which is made up of a username and password. It is used to confirm your identity when accessing your financial aid information and to electronically sign the FAFSA. You can save time by getting your FSA IDs prior to starting the FAFSA.

Certain information and documents are necessary to complete the FAFSA and it’s good to have them handy before you begin. Here’s a checklist to help you get ready.

Susan Thares is the Digital Engagement Lead at the Department of Education’s Office of Federal Student Aid.

Photo by Getty Images.

Why Students and Parents Need to Create Their Own FSA IDs


Each year, more than 18 million people submit a FAFSA, and the U.S. Department of Education provides more than $150 billion dollars in federal student aid. To protect the integrity of this important financial system and the private data of all of the students, parents and borrowers within it, it’s essential that only the FSA ID owner create and use their account.


In order to fill out and submit the Free Application for Federal Student Aid (FAFSA®), you now need an FSA ID, made up of a username and password that you create.

Although the FAFSA is considered your application, one of your parents will have to provide some information on the FAFSA and sign it, if you are considered a dependent student. Any parent, who wants to electronically sign the FAFSA, will need his or her own FSA ID.

To avoid problems with your financial aid down the road, you (and your parent, if that applies) should create your own FSA ID. Don’t let anyone—not your teacher, your financial aid counselor, your mom or dad, your best friend, or your second and third cousins—create your FSA ID for you. And you should not create one for your parent or anyone else.

For starters, it’s against the rules. The FSA ID has the same legal status as a written signature, so you should treat it like such. You’re not supposed to let someone else sign your name on a tax form or a job application. Well, the same goes for your FAFSA.

Also, one of the primary reasons people have issues with their FSA ID and need to call our contact center for help is because someone else created their FSA ID. If you don’t make your own FSA ID you are less likely to know or remember your username and password. And if you get locked out or need a reminder of your username or password, you are less likely to know the answers to your challenge questions or have access to the e-mail address associated with your account.

Don’t miss an important deadline because someone else created your FSA ID, and you can’t reset your password!

In addition to signing the FAFSA, you can use your FSA ID to do things like

  • import your tax information into your FAFSA from the Internal Revenue Service,
  • view and print an online copy of your Student Aid Report (SAR), and
  • sign your master promissory note.

Creating an FSA ID is simple and only takes a few minutes. To save time when you and your parent are filling out the FAFSA, create your own FSA ID before you begin the application. For more information, visit StudentAid.gov/fsaid.

7 Steps to Filling Out the FAFSA

7 Steps to Filling Out the FAFSA

Need to fill out the FAFSA® but don’t know where to start? I’m here to help. You’ve already done the hard part and gathered all of the necessary information, so now it’s time to complete the FAFSA. Let me walk you through it step by step:

IMPORTANT: On May 10, 2015, we changed the way you log in to fafsa.gov. You now must use an FSA ID to log in and sign the FAFSA online. You can no longer use a PIN. If you are required to provide parent information on the FAFSA, your parent must register for an FSA ID too. Create your FSA ID at  StudentAid.gov/fsaid

1. Go to fafsa.gov

One thing you don’t need in order to fill out the FAFSA? Money! Remember, the FAFSA is FREE when you use the official .gov site: fafsa.gov.

2. Log in using your FSA ID

If you completed a FAFSA last year: Click “Login” and enter your FSA ID. If you haven’t transitioned your PIN to an FSA ID, you can do so here. If possible, make sure you link your PIN during the FSA ID registration process. Otherwise, you will need to wait 1-3 days before you can use your FSA ID to sign and submit your renewal FAFSA.

If this is your first time completing the FAFSA: Click “Start a new FAFSA” and enter your FSA ID. If you haven’t created an FSA ID yet, you can do that here. You will be able to use your FSA ID to sign and submit your new FAFSA right away.

If you are a parent: Click “login” and “Enter the student’s information”.

FAFSA Login Screen

3. Choose which FAFSA you’d like to complete

The new FAFSA that becomes available on January 1, 2016, is the 2016–17 FAFSA. You should complete the 2016–17 FAFSA if you will be attending college between July 1, 2016 and June 30, 2017. Remember, the FAFSA is not a one-time thing. You must complete your FAFSA each school year.

Note: The 2015–16 FAFSA is also available if you will be attending college between July 1, 2015 and June 30, 2016, and you haven’t applied for financial aid yet.

4. Enter your personal information*

This is information like your name, date of birth, etc. If you have completed the FAFSA in the past, a lot of your personal information will be pre-populated to save you time. Make sure you enter your personal information exactly as it appears on official government documents. (That’s right, no nicknames.)

5. Enter your financial information*

All of it. You should use income records for the tax year prior to the academic yearfor which you are applying. For example, if you are filling out the 2016–17 FAFSA, you will need to use 2015 tax information. If you or your parent(s) haven’t filed your 2015 taxes yet, which at this point, most people haven’t, you can always estimate the amounts using your 2014 tax return; just make sure to update your FAFSA once you file your 2015 taxes. Once you file your taxes, you may be able to automatically import your tax information into the FAFSA using the IRS Data Retrieval Tool. It makes completing the FAFSA super easy!

6. Choose up to 10 schools

Two-thirds of freshmen FAFSA applicants list only one college on their applications. Don’t make this mistake! Make sure you add any school you plan to attend, even if you haven’t applied or been accepted yet. You can add up to 10 schools to your FAFSA at a time. We will send the necessary information over to the schools you listed so they can calculate the amount of financial aid you are eligible to receive.  If you’re applying to more than 10 schools, this is what you do.

7. Sign the document with your FSA ID*

Your FSA ID serves as your electronic signature, or e-signature. You’ll use it to electronically sign and submit your FAFSA. If you don’t have an FSA ID, you’ll need to get one. If you’re considered a dependent student, at least one of your parents or your legal guardian will need an FSA ID as well. You will use your FSA ID to renew/correct your FAFSA each school year, so keep it in a safe place. If you have forgotten your FSA ID, you can retrieve it. If you have siblings, your parent can use the same FSA ID to sign FAFSAs for all his or her children.

*If you are considered a dependent student, your parent(s) will also need to do this.

I’m finished. What’s next?

That’s it. You’ve filled it out. I told you it wasn’t so bad. With the hard part over, check out this page to learn what you should do next.

Nicole Callahan is a Digital Engagement Strategist at Federal Student Aid.

Your Federal Student Loans Just Got Easier to REPAYE

girl at computer

Beginning today, Federal Direct Loan borrowers can take advantage of a new repayment plan: REPAYE (the Revised Pay As You Earn Plan).

Some of you may be familiar with the Pay As You Earn (PAYE) Repayment Plan, which caps payments at 10% of a borrower’s monthly income and forgives any remaining balance on your student loans after 20 years of qualifying repayment. But this plan is only for recent borrowers.

REPAYE solves this problem. Like the name implies, REPAYE has some similarities to PAYE. First and foremost, REPAYE, like PAYE, sets payments at no more than 10% of income. However, REPAYE—unlike PAYE— is available to Direct Loan borrowers regardless of when they took out their loans.

Should I switch to REPAYE?

If you can’t afford your monthly payment under your current repayment plan, you should consider REPAYE or one of the other income-driven repayment plans. These plans can offer needed relief by ensuring that you will never pay more than a certain percentage of your income. If you can afford to pay more on your loan, you should, since this will save you more on interest costs over the life of your loan.

If you’re pursuing Public Service Loan Forgiveness, you should consider REPAYE. REPAYE is an eligible repayment plan for the Public Service Loan Forgiveness (PSLF) Program. If you’re working toward PSLF and considering consolidating your loans in order to qualify for REPAYE, you should read this first.

If you’re currently on Income-Based Repayment (IBR) because you weren’t eligible for PAYE, you should consider whether REPAYE might be a better option for you. REPAYE could lower your payments by one-third, from 15% to 10% of income.

Before making your decision, use our repayment estimator to compare what your monthly payment would be under REPAYE and all of our other plans.

Under any income-driven repayment plan, you’ll need to “recertify” your income and family size each year.

How is REPAYE different from the other income-driven repayment plans?

So, you already know that your payment under an income-driven plan is a percentage of your income. But REPAYE is different from the other plans. Here are a few differences:

There’s no income requirement to enter the plan: Unlike with the PAYE and IBR plans, borrowers don’t have to show that that their income is low compared to their federal student loan debt in order to enter REPAYE. In simple terms, that means that the amount of your debt and your income level won’t keep you from qualifying.

Borrowers with only undergraduate loans will have a different repayment period than those with graduate loans: Income-driven repayment plans forgive any remaining loan balance after a specific number of years of qualifying repayment—either 20 or 25 years, depending on the plan. REPAYE is a little different than the other income-driven repayment plans. With REPAYE, if you’re only repaying loans you received as an undergraduate student, you’ll repay your loans for up to 20 years. However, if you’re repaying even one loan that you received as a graduate or professional student, you’ll repay your loans (including any loans you received as an undergraduate) for up to 25 years. Of course, this difference doesn’t matter if you later qualify for Public Service Loan Forgiveness, since your loans would be forgiven after 10 years of qualifying payments.

Married borrowers’ payments are calculated differently: The other income-driven repayment plans use the combined income of you and your spouse to set your payment amount only if you file a joint federal income tax return. If you and your spouse file separate tax returns, your payment amount is based on only your income. REPAYE (with limited exceptions) uses the combined income of you and your spouse to set your monthly payment amount, regardless of whether you file a joint tax return or separate returns. This could increase your monthly payment amount. For more information, read our Q&A.

REPAYE payments are not capped at the 10-year standard payment amount: Generally, your payment amount under an income-driven repayment plan is a percentage of your discretionary income. However, this isn’t always the case with the PAYE and IBR plans. Under PAYE and IBR, your payment will never be higher than what it would have been under the 10-year Standard Repayment Plan, no matter how much your income increases. With REPAYE, there’s no cap on your monthly payment amount. Your payment will always be 10% of your discretionary income, no matter how high your income grows. This means that if your income increases significantly, your REPAYE payment could be higher than what you would have to pay under the 10-year Standard Repayment Plan.

REPAYE provides a more generous interest benefit: If your payment doesn’t cover all of your interest, REPAYE pays more of the remaining interest than PAYE or IBR. This can help prevent your loan balance from ballooning and limit the total cost of your loans.

What else should I consider before applying?

Determine whether you have Direct Loans before attempting to switch to REPAYE. If you’re not sure which type of loans you have, you can log in to StudentAid.gov to find out. Loans labeled “Direct” qualify for REPAYE, loans without the “Direct” label don’t qualify for REPAYE unless you consolidate them. You can apply for a Direct Consolidation Loan on StudentLoans.gov.

Special considerations for borrowers who are currently on IBR:

  • If you don’t have Direct Loans, but you’ve been repaying your other loans under IBR for a while and you’re thinking of consolidating to take advantage of REPAYE, it’s important to understand that you’ll lose any credit toward IBR loan forgiveness that you received before consolidating—you’ll have to start over with a new 20- or 25-year repayment period on the Direct Consolidation Loan. So, carefully consider whether having a lower monthly payment amount matters more than the additional time you may spend repaying your loans.
  • Any outstanding interest will be capitalized (added to your loan principal balance) when you leave IBR.

How do I apply for REPAYE?

You can apply for REPAYE—or any other income-driven repayment plan—on StudentLoans.gov. We’ve made some improvements to the way the electronic application works, so give it a spin.

Looking for the lowest monthly payment? With four income-driven repayment plans, it’s easy to overlook a plan or confuse a feature of one plan with another. Let us do the hard part for you. If you’re looking for the lowest monthly payment, there’s a box you can check on the application to request that your loan servicer evaluate you for all income-driven repayment plans, and put you on the plan with the lowest initial payment.

Where can I get more information?

There’s more to know about REPAYE than what you see in this blog post.

Have a question that our resources can’t answer? Contact your servicer. They’re the best option for individualized advice.

3 Important Financial Considerations for College Students

budgeting

The U.S. Department of Treasury recently released a report entitled “Opportunities to Improve the Financial Capability and Financial Well-being of Postsecondary Students.”  I read this report because I am an intern in the office of Federal Student Aid at the Department of Education, and I am working on various projects related to financial literacy for college students. I actually found this report to be a worthwhile read as a college student embarking on the daunting journey of funding my college education and managing my money while in school.

Despite the heavy financial burden, most of us understand the necessity of a college degree. Report after report make evident that education is one of the most significant factors in upward economic mobility. Still, college students face not only education loans but also consumer debt. There are so many important decisions that college students have to make in support of the ultimate goal to become financially independent. And, as tuition, books, housing and more only rise, the dream of financial independence has only become more difficult, and stressful.

Although I am no expert in financial literacy and financial aid, learning about responsible borrowing, careful budgeting, and repaying loans on time has helped lower my financial stress. The following are some simple tips I’ve learned that can alleviate financial stress and help college students manage their money.

1. Borrow responsibly. 

Federal Student Aid offers resources to help students understand the borrowing process. 

First, know how to read the financial aid package your school offers you. Be sure you can differentiate among grants, loans, scholarships, and work-study offers. You can do this by talking to the staff at your school’s financial aid office. Next, talk to your parents or those contributing to your education. Review the financial aid offer from your school, and look at your family’s finances, to decide which aid to accept or turn down. This is important in calculating how much you need to borrow in order to afford your education. You do not need to accept the full amount of loan money that’s offered to you; and understanding that concept will leave you with less debt in the future.

2. Budget carefully.

Budgeting is vital to lowering stress. By adopting responsible budgeting habits, you’ll learn planning skills to help manage multiple priorities and prepare for the future. Healthy budgeting practices provide dual opportunities for money-saving and time-management techniques. Budgeting is a great financial foundation and can be a stepping-stone to handling greater financial responsibility, leaving lifelong benefits.

3. Repay on time.

Repayment is the final step of the student loan process and lasts long after you graduate. If you do your research, the repayment process can go a lot more smoothly.

One way to reduce your stress is to understand the different repayment plans. You might find that you meet the criteria for making payments based on your income. Use the Repayment Estimator to help you understand the different repayment plans and decide which one is best for you. Then contact your loan servicer to see how to apply for the plan that best fits your situation.

Another thing to be aware of is that there are certain loan forgiveness options, including one for those who work full-time in public service. Knowing who qualifies and how to apply can ease the stress you feel about your debt as well.

Lastly, know that forbearance and deferment (ways to postpone or reduce your payments) are options if special circumstances arise. Understanding what’s best for your situation and applying in a timely manner is something you need to be aware of and talk to your servicer about.

As the report says, “Postsecondary education is essential to the economic health of our nation and to the economic opportunity of many Americans,” and each of our personal financial decisions contributes to that!

Megan McCusker is a sophomore at Loyola University Maryland studying History and Spanish. She served an intern for U.S. Department of Education’s Office of Federal Student Aid.

8 Things You Should Know About Federal Work-Study

22 1.19 work-studyIf you’re looking for another way to pay for college, Federal Work-Study may be a great option for you. Work-study is a way for students to earn money to pay for school through part-time on (and sometimes off) campus jobs. Work-study gives students an opportunity to gain valuable work experience while pursuing a college degree. However, not every school participates in the Federal Work-Study Program. Schools that do participate have a limited amount of funds they can award to students who are eligible. This is why it is so important for students to fill out the FAFSA as early as possible, as some schools award work-study funds on a first come, first served basis.
Here are 8 things you should know about the Federal Work-Study Program:

1. Being Awarded Federal Work-Study Does Not Guarantee You a Job

Accepting the federal work-study funds you’re offered is just the first step. In order to receive those funds, you need to earn them, which means you need to start by finding a work-study job. Some schools may match students to jobs, but most schools require the student to find, apply and interview for positions on their own, just like any other job. It is important that students who are interested in work-study or who have already been awarded work-study contact the financial aid office at their school to find out what positions are available, how to apply, and how the process works at their school.

2. Not All Work-Study Jobs are on Campus

The availability of work-study positions includes community service options with non-profit employers, which means some work-study jobs are available for off-campus work. An example might be reading or tutoring for elementary children at local public schools. If you are curious about securing a community service work-study position, contact the financial aid office or the student employment center at your school.

3. Work-Study Funds Are Not Applied Directly to Your Tuition

Unlike other types of financial aid, work-study earnings are not applied directly to your tuition and fees. Students who are awarded work-study receive the funds in a paycheck as they earn them, based on hours worked, just like a normal job. These earnings are meant to help with the day to day expenses that students have and are not meant to cover large costs like tuition and housing.

4. Work-Study Jobs May Be Limited

You may still be able to work on campus without work-study if your school does not have enough work-study funds to cover all on-campus student employees. Many campuses offer jobs for students with or without work-study. Check with the student employment office on your campus to find out what is available.

5. Federal Work-Study is not Guaranteed from Year to Year

There are several factors that can determine whether or not you receive work-study from year to year. These include your family income or financial need, whether you used the work-study funds that were offered to you in a prior year, or how much work-study funding your school receives that year. Contact your school for specific awarding criteria if you are interested in work-study. Typically, students who file the FAFSA early (in January/February prior to the academic year) and answer on the FAFSA that they are interested in Federal Work-Study will have a higher chance of being awarded funds from the program.

6. Pay May Vary

Work-study jobs vary in qualifications and responsibilities, so the pay will depend on the job that you are hired to do. Pay may also depend on your school’s policies and/or the minimum wage requirements in the state.

7. Work-study Earnings Are Removed From Your FAFSA Calculation for the Next Year

One of the benefits of earning income through a federal work-study position is that those earnings do not count against you when you complete the next year’s FAFSA. Be sure to answer the question regarding how much was earned through work-study on your FAFSA accurately. If you do not know the answer, you can contact the financial aid office at your school for help. Some schools will send you a notice in early spring regarding your earnings from the last calendar year to help you file your FAFSA.

8. Hours Worked May Vary

How many hours you work each week will depend on the type of job you get and your employer’s expectations. Most student employment positions, however, will work around your class schedule and only require between 10-20 hours/week, but again – that can vary!

Chandra Owen, Training Coordinator in the Office of Financial Aid at Michigan State University, Justin Chase Brown, Director of Scholarships & Financial Aid at the University of Nebraska-Lincoln, and Karla Weber, Senior Advisor in the Office of Student Financial Aid at the University of Wisconsin-Madison

 

7 Options to Consider if You Didn’t Receive Enough Financial Aid

The reality of college costs is that many families find themselves struggling to pay the entire college bill, despite having already filed the Free Application for Federal Student Aid (FAFSA) and receiving federal, state, and institutional financial aid resources. If you find yourself in this position, here are some ideas to consider to help fill the gap between what your financial aid covers and what you owe the institution.

Federal Student Aid image

 

TIP: The financial aid office at your college is a great resource. If you didn’t receive enough financial aid, contact your school’s financial aid office. They can help you explore your options.

Scholarships

For those heading to college this fall, most scholarship decisions for the academic year have already been made. However, we recommend you begin a routine of searching and applying for scholarships regularly. You should first consider scholarships local to where you graduated from high school or live; try community, religious, and fraternal organizations. You may also consider businesses in your community or those that employ your parent(s).

Then, look for scholarship resources available statewide, especially from organizations with which you may have been involved or companies in your state that are in the field for which you plan to study.

National scholarships can be very competitive, but don’t let that keep you from applying. Ask your financial aid office or academic unit about institutional or departmental scholarships (decisions may have been made for this year, but ask how to make sure you don’t miss deadlines for next year!). With scholarship opportunities, it’s always important to be careful of fraud. If you are ever concerned about the legitimacy of a scholarship, your school’s financial aid office might be able to help you make the determination.

Part-Time Work

You may have been awarded Federal Work-Study, which at most schools still requires you to find the work-study position yourself. This can help you cover some costs throughout the semester since these funds are paid as you earn them through working. If you were not awarded work-study funds, most schools have other part-time on-campus positions that can help you with some college costs. Working part-time on campus can be beneficial to your educational experience. Be cautious of working too many hours if you can avoid it. Ask your financial aid office or career services office how to apply for on-campus positions.

Payment Plans

Your school’s billing office, sometimes referred to as the bursar’s office or cashier’s office, may have payment plans available to help you spread the remaining costs you owe the school over several payments throughout a semester. The payment plan can help you budget the payments rather than paying in one lump sum, possibly helping you avoid costly late fees.

Special Circumstances Reevaluation

Sometimes a family’s finances are not accurately reflected on the FAFSA because of changes that have occurred recently, such as job loss, divorce or separation, or other special circumstance. Schools are not required to consider special circumstances, but those that do have a process by which you can petition for a reevaluation of the information on the FAFSA. This process may require you to submit documentation, and the financial aid office will recalculate your eligibility, possibly resulting in a change of financial aid awards.

Additional Federal Student Loans

If you’ve exhausted all your free and earned money options and still need additional funds to help you pay for school, contact your school’s financial aid office to find out if you’re eligible for additional federal student loans. For example, you might have reached a level of increased student loan eligibility if you completed coursework after your college awarded your aid.

Federal Direct PLUS Loans: Also, if you are a dependent student and still need assistance, your parent can apply for a Direct PLUS Loan. Some schools use the application on StudentLoans.gov and others have their own application. The PLUS loan application process does include a credit check. If your parent is not approved, he or she may still receive a Direct PLUS Loan by obtaining an endorser (cosigner.) If a parent borrower is unable to secure a PLUS loan, the student may be eligible for additional unsubsidized student loans of up to $4,000 (and sometimes more.)

Emergency Advances or Institutional Loans

Sometimes you may have college-related costs, such as housing costs or other living expenses, before your financial aid is disbursed to you. Your school may offer an option to advance your financial aid early or offer a school-based loan program. Ask your financial aid office if this is an option and always make sure you are aware of the terms and conditions (such as interest rates or repayment terms) of your agreement.

Private or Alternative Loans

Some private institutions offer education loans that do not require the FAFSA. While we recommend federal aid first, we realize it does not always cover the cost, especially for pricier schools. These types of loans will almost always require a cosigner and usually have higher fees or interest rates depending on your credit. We encourage you to first ask your financial aid office if they have a list of lenders for you to consider, but not all schools maintain such a list. If not, you can search for lenders on your own, but compare products before making your choice: look at interest rates, fees, repayment terms, creditworthiness requirements, satisfactory academic progress requirements, etc.

Before making any final decisions on how to fill the gap between your aid and your costs, it is always recommended that you meet with a representative in your financial aid office to determine what campus resources might be available before going out on your own. It might also be possible that you still have the time to change some of your choices before the semester begins: Can you change the type of meal plan you chose? The type of housing? The number of classes in which you are enrolled? Check with campus officials to see if you still have time to select a different, more affordable option.

Justin Chase Brown is Director of Scholarships and Financial Aid at the University of Nebraska-Lincoln.

3 Options to Consider if You Can’t Afford Your Student Loan Payment

Frustrated man - 3 Things You Should Do If You Can't Afford Your Student LoansThe U.S. Department of Education offers a number of affordable repayment options for borrowers who are struggling to pay back their student loans. The important thing to remember about all the options below is that it’s completely free to apply! Also, if you ever have questions or need FREE advice about your student loans, you can always contact your Department of Education loan servicer.

1. Switch Your Repayment Plan

You may be able to lower your monthly student loan payment by switching to a different repayment plan. Use this calculator to compare what your monthly payment amount could be if you switched your plan.

If you don’t pick a different plan when entering repayment, you are automatically enrolled in the 10-year Standard Repayment Plan. However, many borrowers don’t realize that you can switch your plan at any time by contacting your loan servicer.

One of the most popular options for borrowers who are looking to lower their payments is the income-driven repayment plans.

We offer three income-driven repayment plans:

  1. Pay As You Earn
  2. Income-Based
  3. Income-Contingent

Benefits:

  • Your monthly payment will be a percentage of your income. Depending on the plan, that may be 10% or 15% of your discretionary income, or something else. What you ultimately pay depends on the plan you choose and when you borrowed, but in all cases, it should be something you can afford.
  • Your monthly payment amount will be lower than it would be under the 10-Year Standard Repayment Plan if you qualify to make payments based on your income. In fact, it could be as low as $0 per month!
  • Any remaining balance on your loans is forgiven if your federal student loans are not fully repaid at the end of the repayment period (20 or 25 years).

Income-driven repayment plans are a great option if you need lower monthly payments. However, like all benefits, there are also costs. All of these benefits will ultimately increase the amount of interest you pay over time. The income-driven repayment plans also have tax consequences for any forgiveness received.

Apply for an income-driven repayment plan now

If one of the income-driven repayment plans is not a good option for you, we offer other options. Your servicer can help you identify the best plan to fit your needs.

2. Consolidate your Student Loans

Loan consolidation can simplify your payments by combining multiple federal student loans into one loan. Consolidation can also lower your monthly payment.

Benefits:

  • Can lower your monthly payment by extending your repayment period (spreading your payment out over more years). The repayment term ranges from 10 to 30 years, depending on the amount of your consolidation loan, your other education loan debt, and the repayment plan you select.
  • Will allow you to qualify for additional repayment options. If you have FFEL or Direct PLUS Loans, consolidating your loans into a Direct Consolidation Loan will allow you to qualify for additional repayment plans, such as the Pay As You Earn or Income-Contingent Repayment Plans, that you wouldn’t have qualified for if you hadn’t consolidated.
  • Your variable interest rate loans will switch to a fixed interest rate. It’s important to note that consolidation will lock-in interest rates on variable-rate loans, but will not lower them further. This would be a benefit if, like now, interest rates are low.

The benefits listed could provide relief to some borrowers. However, it’s important that you also weigh the costs before consolidating. For example, because you’re restarting and possibly extending your repayment period, you’ll pay more interest over time. Additionally, you may lose borrower benefits, such as interest rate discounts and loan cancellation benefits, offered with the original loans.

Apply for a direct consolidation loan now

3. Postpone your Payments

Under certain circumstances, you can receive a deferment or forbearance that allows you to temporarily postpone or reduce your federal student loan payments.

Deferment and forbearance may be a good option for you if you are temporarily having a difficult time paying back your student loans. Deferment and forbearance are not good long-term solutions. If you think you’ll have trouble paying back your loans for more than a year or you’re uncertain, you should consider an income-driven repayment plan or consolidation.

Benefits:

  • You do not need to make student loan payments during a deferment or forbearance.
  • The federal government may pay the interest on your loan during a period of deferment. This depends on the type of loans you have.

Again, deferment and forbearance are not good long-term solutions for borrowers who are struggling to pay back their student loans. Some reasons why:

  • With a deferment, interest will continue to be charged on your unsubsidized loans (or on any PLUS loans).
  • With a forbearance, interest will continue to be charged on all loan types, including subsidized loans.
  • The interest you accrue during periods of deferment or forbearance may be capitalized (added to your principal balance), and the amount you pay in the future will be higher.

If you can, you should consider making interest payments on your loans during periods of deferment or forbearance

To request a deferment or forbearance, contact your loan servicer

If you need help deciding which of these options is best for you, contact your loan servicer. They can help you weigh the different options based on your unique situation.

Nicole Callahan is a Digital Engagement Strategist at Federal Student Aid.

Federal Student Aid PIN (1998 -2015)

Federal Student Aid PIN tombstone

Federal Student Aid PIN, known as PIN to his many friends, died on May 10, 2015, after a long life of public service. Born in Washington, D.C. in 1998, PIN immediately made his presence felt across the country as he helped students complete their FAFSAs electronically on the World Wide Web. For 17 years, PIN reduced the completion time of federal student aid applications by millions of hours. Success with the FAFSA led to an extended career spanning the entire student aid life cycle, ranging from the aforementioned FAFSA and the IRS Data Retrieval Tool, entrance and exit counseling, and signing Master Promissory Notes, all the way to loan history access on the National Student Loan Data System and—more recently—StudentAid.gov. PIN is survived by one child, FSA ID.

On May 10, 2015, we changed the way you log in to Federal Student Aid websites. Students, parents, and borrowers are now required to use an FSA ID, instead of a Federal Student Aid PIN, to log in. If you haven’t logged in to a Federal Student Aid website (such as fafsa.gov or StudentLoans.gov) since May 10, you will need to create an FSA ID before you can log on in the future.

Create an FSA ID here: StudentAid.gov/fsaid

Q: What is an FSA ID and why do I need one?

A: An FSA ID is a username and password you use to access your personal information on Federal Student Aid websites and to sign important documents.

Q: What happened to the Federal Student Aid PIN?

A: On May 10, 2015, after 17 years of dedicated service, the PIN was retired to make way for the more modern and secure FSA ID.

Q: If I already submitted my FAFSA this year, do I already have an FSA ID?

A: The FSA ID replaced the PIN on May 10, 2015. If you submitted your FAFSA before that, you used a PIN. In order to do anything with your FAFSA or any other Federal Student Aid websites, you will now need an FSA ID. You can create one at StudentAid.gov/fsaid

Q: Who needs an FSA ID?

A: Students, parents, and borrowers who need to log in or interact with Federal Student Aid websites need an FSA ID.

Q: Can I make an FSA ID for someone else, such as my child or my parent?

A: No. Only the FSA ID owner should create and use the FSA ID. Why? The FSA ID is a legal signature that should be used only by its owner. If you don’t create your own FSA ID, then you may not be able to access the websites you need to get your financial aid!

Q: How do I get an FSA ID?

A: Go to StudentAid.gov/fsaid to create an FSA ID. If you have a PIN, then you can enter your PIN during the FSA ID registration process so that you won’t need to wait for the Social Security Administration to verify your information. But, if you don’t have a PIN or don’t have it handy, you can still create an FSA ID.

Q: Do I have to wait before I use my FSA ID?

A: You can use your FSA ID to sign and submit a new FAFSA right away. For other tasks, if you didn’t link your PIN when you created your account, you’ll need to wait one–three days for us to confirm your identity with the Social Security Administration. You’ll get an e-mail when this process is complete.

Q: What if I forget my FSA ID username or password?

A: Don’t worry. On our log-in pages, you’ll find links that give you the option of retrieving your username or password through your verified e-mail address or by successfully answering your challenge questions.

For answers to other frequently asked questions about the new FSA ID, go here: StudentAid.gov/fsaid.

Which Student Loan Repayment Plan Should You Choose?

If you graduated from college within the last six months, you have probably been contacted by one of the U.S. Department of Education’s loan servicers, reminding you that it’s almost time to begin repaying your student loans.

Your loan servicer will automatically enroll you in our Standard Repayment Plan unless you tell them otherwise. Under a Standard Plan, your payments will be fixed over a 10-year period of time.

But, this isn’t your only option. Did you know that the Department offers several different repayment plans? You can read more about that below or you can  try our repayment estimator to find out which repayment plan is best for you. Just log in, and the tool will pull your federal student loan information and allow you to compare our different repayment plans side by side:

Here are the details on each repayment plan we offer:

Repayment Estimator Graphic

Standard Repayment Plan

The most basic type of repayment plan is the Standard Repayment Plan. This is the default plan for most types of student loans. It breaks down your loan balance into monthly payments of at least $50 for up to ten years. In general, this is the plan that will cost you the least amount of money in interest payments.

Graduated Repayment Plan

Under the Graduated Repayment Plan, monthly payments start out low and increase every two years during the 10-year repayment period. This plan is best for borrowers whose income may start out low but is expected to increase. One downside is you will pay more in interest than you would under the Standard Repayment Plan.

Extended Repayment Plan

The Extended Repayment Plan allows borrowers with more than $30,000 in debt to extend the repayment period from ten years to up to twenty-five years. Payments under the Extended Repayment Plan can be either standard or graduated. This plan is best for borrowers whose loan burden is too large to bear the standard monthly payments over the course of just ten years.

Income-Based Repayment Plan

The Income-Based Repayment (IBR) Plan allows borrowers with a demonstrated financial hardship to limit their monthly loan payments to 15 percent of their discretionary income (that is, the difference between their adjusted gross income and 150 percent of the poverty guideline for their individual situation). Under this plan, if the balance of the loan has not yet been paid off after 25 years of payments, it can be forgiven. Under IBR, borrowers will pay more in interest over the life of the loan. This plan is best for borrowers who are struggling to afford their monthly payments under other repayment plans.

Pay As You Earn

The Pay As You Earn Repayment Plan allows new borrowers with a demonstrated financial hardship to limit their monthly loan payments to 10 percent of their discretionary income. Under this plan, if the balance of the loan has not yet been paid off after 20 years of payments, it can be forgiven. However, borrowers will pay more in interest over the life of the loan than under the Standard Repayment Plan. 

Income-Contingent Repayment Plan

Under the Income-Contingent Repayment Plan, a borrower’s monthly payment amount is calculated based on annual income and family size as well as his total loan amount. If a loan balance remains after 25 years of payments, it may be forgiven. Unlike the IBR and Pay As You Earn Repayment Plans, borrowers need not be facing financial hardship to qualify for this plan. However, a borrower will likely pay more in interest than in other repayment plans. This plan is best for borrowers who are not facing demonstrated financial hardship, but whose financial situation is insufficient to bear the monthly payments under other repayment plans.

Remember that these are for federal loans only. If at any point, you need advice or have questions about your federal student loans, don’t hesitate to contact your loan servicer. If you have private loans as well, be sure to check with your lender to see what repayment options they have available.

For more information on student loans and federal financial aid, visit StudentAid.gov.

4 Things You Need to Know About Repaying Your Student Loans


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When it comes to repaying your federal student loans, there’s a lot to consider. But, by taking the time to understand the details of repayment, you can save yourself time and money. This should help you get started.

When do I begin repaying my federal student loans?

You don’t have to begin repaying most federal student loans until after you leave college or drop below half-time enrollment. Many federal student loans have a grace period. The grace period is a set period of time after you graduate, leave school, or drop below half-time enrollment before you must begin repaying your loan. The grace period gives you time to get financially settled and to select your repayment plan. Note that for most loans, interest will accrue during your grace period.

Your loan servicer or lender will provide you with a loan repayment schedule that states when your first payment is due, the number and frequency of payments, and the amount of each payment.

Whom do I pay?

The U.S. Department of Education uses several loan servicers to handle the billing and other services on federal student loans. Your loan servicer will work with you to choose a repayment plan and will assist you with other tasks related to your federal student loans. It is important to maintain contact with your loan servicer and keep your servicer informed of any changes to your address, e-mail, or phone number.

How much do I need to pay?

Your bill will tell you how much to pay. Your payment (usually made monthly) depends on

    • the type of loan you received,
    • how much money you borrowed,
    • the interest rate on your loan, and
    • the repayment plan you choose.

You can use our repayment estimator to estimate your monthly payments under different repayment plans to determine which option is right for you. Just remember, if you would like to switch repayment plans, then you must contact your loan servicer.

What should I do if I’m having trouble making my student loan payments?

Contact your loan servicer as soon as possible. You may be able to change your repayment plan to one that will allow you to have a longer repayment period or to one that is based on your income. Also, ask your loan servicer about your options for a deferment or forbearance or loan consolidation.

Still have questions?

If you need assistance with your federal student loan, it is best to contact your loan servicer. They can help you choose or change your repayment plan, and learn about other options to make your monthly payments more affordable. If you have any questions, don’t hesitate to contact your loan servicer.