Finance & Career

Completing FAFSA – Student & Family Guide to FAFSA
  • August 1, 2022
  • Posted by: Portia Johnson, Kassandra Ross, and Emily Hines
  • in Finance & Career
  •   Print

8 min read
Alabama FAST: FAFSA Application Survival Toolkit

Commercial Financial Aid Services

Some companies or agencies offer fee-based services to help families search for and secure financial aid for college. These companies are commonly called commercial or private financial aid services, FAFSA preparers, college aid, or financial aid consultants. A company may offer to help families claim “pandemic grants” or “loan forgiveness.” Fees for such services can cost more than $1,000.

They might provide various services, including the following:

  • Offering advice or consultation sessions
  • Answering questions about financial aid, expected family contribution (EFC), and tax implications
  • Helping seek or secure scholarships, loans, or grants on the student’s behalf
  • Completing financial aid, FAFSA, or loan applications for the parent or student
  • Estimating the cost of college attendance
  • Comparing financial aid award offers

Commercial financial aid services are not illegal or unethical. However, some companies are too good to be true and make promises they cannot deliver. Parents/ guardians and students should understand what the commercial financial aid company is promising, fact check all the claims being made, and know the options. Always ask for references and take the time to check them carefully. Before engaging with a commercial financial aid service, it is important to consider a few key things:

Know Your Rights and Responsibilities

Many of the services provided by a commercial financial aid service are also offered free by financial aid offices at colleges and universities. High school guidance counselors have a list of scholarships and several resources to assist in scholarship and grant searches. As the name suggests, it is 100% free to complete the Free Application for Federal Student Aid (FAFSA). Most families can complete FAFSA in 30 minutes or less. There are also free resources, such as high school guidance counselors, college financial aid offices, and state and national Department of Education websites that offer assistance with FAFSA completion. Yet, some families may choose to hire a FAFSA preparer. A preparer is someone who charges a fee to complete the FAFSA form for a parent or student. They typically charge between $80 and $120 per year. Suppose a family decides to hire a preparer. In that case, it is still the parent’s or guardian’s and student’s responsibility to ensure that all financial and personal information provided on the FAFSA form is accurate. The FAFSA form is a federal document. Falsifying information on it is a felony. The student or parent or guardian may face up to five years in prison and a $20,000 fine.

Beware of Agencies that Do the Following:

  • Promise a specific grant or scholarship award
  • Do not have references
  • Have a fee based on the percentage of aid the parent or student receives. Never agree to this pay structure.
  • Do not sign their name as “preparer” on a FAFSA form completed on behalf of a parent/guardian or student.
  • Ask for your FSA ID. Students and parents/guardians should never provide anyone, not even a FAFSA preparer, with their FSA ID.

Seek a Fiduciary Agent

If a family considers engaging with a private financial aid firm, shopping around and asking questions is essential. Ask each firm if it acts as your “fiduciary.” A fiduciary is a person or organization legally bound to act in the best interest of the person or people they represent. The parent/guardian or student represented by a fiduciary is called a “principal or beneficiary.” The fiduciary must make financial decisions that best benefit the principal. The fiduciary must disclose any commissions received. And the principal can legally recover any financial damages they experience due to the fiduciary’s actions or negligence. Parents or students who hire a private or commercial financial aid service should always seek someone who will act as a fiduciary.

Research the Agency

Do your research before committing to a commercial financial aid service. Check each of the references provided. Below is a list of possible questions to ask a reference:

  • Do you have a personal relationship with the adviser?
  • How long have you known the adviser?
  • How long has the adviser assisted you with financial aid?
  • What services did the adviser provide?
  • Were you satisfied with the relationship and services delivered?
  • How much aid did the adviser help you secure?
  • How do you compensate the adviser?
  • Have you ever considered firing or not using the adviser?

Finally, search the company on the Federal Trade Commission and Better Business Bureau websites. Google the company and search for online reviews or comments made by past customers.

Steps to Completing FAFSA Form

These are directions to complete FAFSA, step-by-step. For free help completing this form, contact studentaid.gov at https://studentaid.gov/apply-for-aid/fafsa/filling-out/help or call 1-800-4-FED-AID at (1-800-433-3243).

Step 1: Create a FAFSA ID

Creating a FAFSA ID allows the filer to complete forms electronically, access the myStudentAid app, sign documents, and access resources online. For help creating the FAFSA ID, go to the US Department of Education’s Federal Student Aid website. Completing the FSA ID in advance can save a lot of time in completing the FAFSA form. Parents/guardians and students each require an ID.

Step 2: Gather Documents

The filer will need several documents to complete the FAFSA form. Gathering them in advance will save time. Needed are the following:

  • Parent/guardian and student Social Security numbers or alien registration numbers
  • Driver’s license number or another state-issued form of identification
  • Federal tax information or tax returns, including IRS W-2 information for the previous 2 years
  • Record of other income, such as child support and interest income, for the previous 2 years
  • Banking, checking, and investment account information for the previous 2 years

Step 3: Start the Form

Beginning October 1, the filer can complete the FAFSA form. There are three easy ways to file:

  • Electronically at the US Department of Education’s Federal Student Aid website.
  • Through the myStudentAid mobile app, available on the App Store (iOS) or Google Play (Android).
  • Mail it: Call to request the FAFSA PDF at 1-800-4-FED- AID [(1-800) 433-3243] or download it from the US Department of Education’s Federal Student Aid website.

Step 4: List Colleges and Schools

For convenience, the information reported on FAFSA is sent directly to the schools listed on the form. The schools will receive the FAFSA information within a few days of FAFSA completion by the filer. The student does not have to apply to a school before listing it on FAFSA. List the schools that the student attends or is considering attending.

Up to ten schools may be listed online, in the mobile app, or four schools on a FAFSA PDF. In some states, the order that schools are listed matters because order can affect eligibility for state aid programs. In Alabama, the order of schools listed does not matter.

Step 5: Dependency Status

The filer will be asked several questions on the FAFSA form to whether the student is independent or dependent. Dependent students must report parent or guardian information. For divorced parents, information for the custodial parent must be reported. The custodial parent is the parent with whom the student lived the most during the past 12 months. Some people may not be able to provide parental information. If parental information is incomplete or unavailable, get additional help on the US Department of Education’s Federal Student Aid website.

Step 6: Financial Information

The FAFSA form will ask questions about federal tax information and income. The filer can enter financial information manually or import data. They will be given the option to automatically import financial data from the Internal Revenue Service (IRS) using the IRS Data Retrieval Tool (IRS DRT). Using the IRS DRT can save time.

Step 7: Sign and Submit

The filer can sign the form using the FSA ID. They can also opt to print, sign, and mail the forms to FAFSA. Forms signed using the FSA ID will process faster than those mailed in. Once a signing option is selected, a confirmation page will be produced. The FAFSA form is not successfully completed until confirmation is obtained. Print or save the confirmation form.

Step 8: Check Mail

The filer should check email regularly. They will also get a printed copy of the confirmation emailed to the filer directly after completing FAFSA stating that the FAFSA form was successfully filed. This version of the confirmation will have much less information than the electronic confirmation page received upon signing the document. Within a few weeks, the filer will also receive another email informing them that the FAFSA form has been successfully processed.

FAFSA Tip

Parents/guardians and students should be aware of deadlines. There are deadlines for each academic school year, and additional deadlines may vary by state and college. In Alabama, students or parents/ guardians should contact individual financial aid offices of the college or colleges where they seek to apply to confirm important school deadlines. June 30 is the last day to apply for FAFSA for the following academic school year.

Avoiding FAFSA Scams

The FAFSA form can take time and seem like a complex process. Parents and students often seek help to complete the process. Be careful of scammers! Here are seven helpful tips to avoid FAFSA scams.

1. Beware of paying for help to complete the FAFSA form.

The Federal Student Aid website warns, “several websites offer help filling out the FAFSA form for a fee. These sites are not affiliated with or endorsed by the U.S. Department of Education.” You can find help at no charge from a high school counselor or college or university student financial aid department.

Scammers may falsify information on a FAFSA application so the parent/guardian or student will qualify for more financial aid. If this happens, the parent/guardian or student could be fined up to $20,000 and possibly serve jail time.

2. Go directly to the FAFSA website, FAFSA.gov, to complete the application.

Don’t search an Internet browser for the Federal Student Aid website. You may unknowingly enter personal information, including Social Security numbers and tax information, on an unsafe platform or fake website.

3. Protect the Federal Student Aid (FSA) PIN.

Before completing the FAFSA form, the filer will be required to create a Federal Student Aid PIN. Keep the FSA PIN in a secure place, and do not share it with anyone.

4. Close the browser when the application has been submitted.

This will help protect against identity theft if someone else has access to the computer.

5. Be aware of FAFSA scammers.

Do not give out personal information over the phone or the Internet unless you initiate the contact. If you did initiate the call, make sure to have the correct phone number or email address. Scammers often represent themselves as a legitimate business and call or send emails to obtain personal and financial information.

6. Avoid clicking on email links.

FAFSA will send an email after an application has been submitted. To protect yourself, avoid clicking on links if you are not sure that it is a legitimate email source. Exit the email and go directly to the FAFSA website. Log in to obtain information.

7. File a report if you suspect you are a victim of fraud.

If you believe your information has been compromised, help is available to determine the next steps you should take. The offices below are resources available to help.

  • Visit the Federal Trade Commission website at ReportFraud.ftc.gov.
  • File a report on the Inspector General’s website at https://oig.ssa.gov/.
  • File a fraud report with the state attorney general’s office. The Alabama Attorney General’s Office can be reached at (1-800) 392-5658 or (334) 242-7335, or www.alabamaag.gov/ ConsumerComplaint.
  • Contact the three major credit bureaus: Equifax, Experian, and TransUnion.
    • Equifax: https://www.equifax.com/personal/
    • Experian: https://www.experian.com/
    • TransUnion: https://www.transunion.com/

FAFSA Tip

Filers who need immediate assistance while completing FAFSA can contact the Alabama Goes To College Help Desk. The free Help Desk is open every weekday and can be reached as follows:

Texting or calling (334) 316-6155

Sending a Facebook or Instagram message to @algoes2college

Emailing algoestocollege@alabamapossible.org

FAFSA Resources in Alabama

Parents and students need information on reputable resources and assistance to complete FAFSA and avoid scams successfully. The organizations below offer trustworthy, free help to parents and students who may need clarification or have questions about their unique financial aid or household situation.

Local

  • High School Counselors/Career Coaches
  • Community College Student Financial Aid Departments – https://www.accs.edu/FAFSA
  • University Student Financial Aid Departments

State

National

 

Back to Student & Family Guide to FAFSA

 

Peer ReviewPortia Johnson, Extension Specialist, Assistant Professor, Auburn University; Kassandra Ross, Clinical Instructor of Marketing, University of Alabama; Emily Hines, Regional Extension Agent, Auburn University

Contributions from Jill Prince, Career Coach Mentor, Alabama Board of Education; Monica Mack, Education Specialist, Alabama Board of Education; Theresa Jones, Regional Extension Agent, Auburn University; Patricia Smith, Regional Extension Agent, Auburn University; Renee Vines, Regional Extension Agent, Auburn University; Cynthia White, Regional Extension Agent, Auburn University

New July 2022, Student & Family Guide to FAFSA, FCS-2639