What is the FAFSA?
FAFSA stands for Free Application for Federal Student Aid. It is a way for students at two- or four-year universities to apply for student loans and grants through the Department of Education.
Why is it important?
Federal student loans almost always have significantly lower interest rates than private student loans and can make accessing a college education much easier.
There are two types of loans offered, and you may qualify for one or for both. The first type of loan is a subsidized loan. The federal government will pay the interest on a subsidized loan while a student is still in school at least half-time. This means that when you graduate and are ready to start repaying your loan, you will owe the same amount that you borrowed. Subsidized loans are based on financial need and your school will determine how much you can borrow. Unsubsidized loans are loans where the interest is not covered by the government and begins to accrue immediately. This means that if your loan was for $12,000 and you accrued $1,000 of interest during school, you will owe $13,000 when you graduate. Unsubsidized loans are available to all students regardless of their financial need and can be used for both undergraduate and graduate level studies.
Finally, completing the FAFSA determines your eligibility for a Pell Grant. As a grant, this money does not have to be repaid. Pell Grants are need-based and their amount can vary. During the 2022-2023 school year the maximum awarded was $6,859 and the minimum was $692.
How it works:
The FAFSA uses the income of yourself and your guardian(s) to calculate a number called the EFC – the expected family contribution. This is the dollar amount that the government expects your family to be able to reasonably contribute to college per year. This value is not permanent – students must complete the FAFSA every year to be eligible for loans and grants, and your EFC may change based on updated information.
You can complete your FAFSA here: https://studentaid.gov/h/apply-for-aid/fafsa
Need more information?
Visit the link above to learn more about the FAFSA. Additionally, the Ohio Department of Higher Education and 4-H have teamed up to host a virtual event for students and their parents/guardians to ask questions and learn more about the FAFSA.
The virtual event is scheduled for January 12, 2023, from 6-7 p.m. Registration available here: https://go.osu.edu/fafsa4u