Will your children or grandchildren be heading to college soon?

Posted by Kim Chen on July 16th, 2016

Written by Ronald Gustason, CPA

We all know that college and university tuition, fees and housing costs can be very expensive. In order to
minimize the cost of a child or grandchild’s education, most families will want to take advantage of the
various scholarship, grant and other student aid opportunities offered by schools, the federal
government, state governments, not for profit institutions and private foundations. With just a little bit
of research, the internet can provide a wealth of information about the types and amounts of aid that is
available as well as eligibility requirements. In addition, virtually every college or university has a
financial aid office staffed with professionals willing to advise prospective students.

Probably the single most valuable tool used by students to secure aid is the Free Application for Federal
Student Aid (FAFSA). FAFSA is the application students use to apply for the federal student aid programs
offered by the U.S. Department of Education. Completing and submitting the FAFSA is free and easy. It
gives students the largest source of financial aid to cover college expenses. In addition, many states and
colleges use the FAFSA application to determine eligibility for state and school aid, and some private
financial aid providers use the application to determine if students qualify for the aid.

There has been an important change to the FAFSA application procedure.

Historically, the FAFSA application could be filed as early as January 1st for the college school year
beginning the following September. That meant that high school students were submitting applications
during the spring semester of their senior year. The change in procedure will see students submitting
the FAFSA application in the fall semester of their senior year. Beginning with the 2017 /2018 college
school year, the FAFSA application will be accepted any time after October 1st of the preceding school
year. This change means that students starting their senior year in high school this fall (September 2016)
will be able to apply for aid as early as October 1, 2016.
Why is this change important? Certain types of student aid are granted based on a first come, first
served basis. Available funds tend to run out as time goes by. Students that apply early may receive
more generous awards. Parents who have already completed the FAFSA for their older offspring may
not be aware of this important change. Waiting until January or February of 2017, could place your
children several months behind others who file on or near October 1st. Why not get a headstart?
For more information, contact your student’s high school advisor, any college financial aid office or Ron
Gustason in our Naples office. You can also visit the U.S. Department of Education’s website, Federal
Student Aid at https://fafsa.ed.gov/