At the beginning of every year, our offices are showered with questions about the FAFSA (a.k.a. the Free Application for Federal Student Aid) from concerned parents and students:

“Should I file the FAFSA even if my family will not qualify for financial aid“

“Should grad students apply?”

“What about students who have won scholarships?”

“What if my parents or grandparents are paying for my entire tuition?”

It’s tempting to try to avoid the FAFSA-it takes preparation, time and effort. At times it can be confusing-but the fact of the matter is, everyone from high school seniors to grad students should file the FAFSA, even people in the situations above.

Though you hope to get awarded grants or scholarships, the main reason all students should submit a FAFSA is that it is the ONLY application that gives you access to federal student and parent loans. Unlike most private student loans, federal loans have a low fixed interest rate, capped at 6.8%, and many more consumer protections. Federal parent loans are capped at 8.5%. I specialize in helping families who don’t qualify for financial aid find ways to reduce their college costs, and I advise all my clients who want to take out education loans to take out federal loans first!

Even if you won’t qualify for need-based aid, think of the FAFSA as a safety net. Life circumstances can change quickly, so even though you think your college costs are covered it’s good to have a backup plan. One of my clients was told that their child’s grandparents planned on covering half of their student’s college costs until the grandfather’s health failed and they became strapped for cash. Suddenly the parents found themselves short on college funds and had to scramble to apply for loans.

Though graduate students don’t have access to the same number of grants through the FAFSA as undergrads, it still gives them access to valuable funding options like work-study and federal student loans.

Here’s another reason to sharpen your pencil: Some college won’t give you access to merit aid if you don’t file the financial aid forms!

And, speaking of the FAFSA, it opens for filing on January 1st-that’s less than a week away! Better start getting ready-and make sure you head to www.FAFSA.ed.gov (the free Department of Education website; DON’T make the mistake of going to www.FAFSA.com, which is a commercial website that will charge you to file the FAFSA) soon. Check back here (or subscribe in a reader or for email updates) to learn more about filing the FAFSA!

All the best,
Deborah Fox