Students will fill out the final six-page version of the application that requests college dollars at the federal and state level beginning Jan. 1.
FAFSA is a federal student financial aid program under the United States Department of Education for students hoping to attend college but in need of financial assistance. Students applying for the 2009-10 school year will be the final group to use the longer process of getting aid.
The new FAFSA application has been reformatted to reduce some of the questions and make the process less time-consuming, said Linda Clemons, director of the financial aid office at SIUC.
Beginning next year, the paper application will not be available and is already not being sent to campuses, Clemons said.
"They are encouraging students to do it online which is definitely faster than a paper document," she said.
To shorten the application time, there is a worksheet in the financial aid office that provides the majority of the information students will need for the application, Clemons said. After filing the work booklet with information and transferring it to the computer, the process now takes a mere 10 minutes, she said.
Clemons outlined the necessary steps students need to take to apply for the financial aid, which is awarded on a first-come, first-served basis.
- Get PIN number. Clemons said before students begin the free application, they must acquire their PIN numbers. If a student has already applied for FAFSA, he or she will use the same PIN. If students haven't used a PIN before, they will be directed to the Web site that provides the pin, Clemons said.
For students who are dependent, their parents must fill out the FASFA form to request a PIN number as well. Most students younger than 24 years of age are generally dependent.
- Get tax forms ready. When students get into the system, they need to have their tax and other income forms ready because the application requires them. Other information requested includes: full name, address, social security number and driver's license information. The Web site is pretty good at making sure students don't put in incorrect data, Clemmons said.
- List desired schools. In filling out the form, students can list all the schools they want to receive the information. The Web site allows an unlimited amount but the paper form provides room to list only four schools.
After students follow these steps, the form goes through several channels before money is awarded.
- Sent to government for eligibility. After students complete the FASFA, it is sent to the federal government, which determines family contribution to tuition and loan eligibility. It is then sent to the schools the student listed to determine the total cost of attending each school. Because each school's tuition is different, the government calculates tuition costs for each school to determine the loan amount.
- FASFA form given to both federal and state levels. In addition to getting federal aid, a student may also receive aid from the state if the school of choice is a public institution.
-Offer is made. After the government decides a student's contribution and loan eligibility, an offer is made. If students accept the offer, they must go through a brief loan counseling session.
- Loan responsibility given. Loan counseling can be delivered over the Internet in the form of informing the student of their responsibilities in taking a loan. It can also be administered over the telephone using touch-tone to answer multiple-choice questions, or students can have the packet sent to them in paper form. Some schools offer a more personal session, which counsels students in groups.
Students can also apply for an "unusual circumstances" form that will allow them to receive more money if their income is significantly altered by circumstances the FAFSA does not consider, such as high medical bills or a parent's recent job loss.
Clemons stressed that the federal student aid loan is exactly that - a loan. Students must repay it in order to prevent default. Clemons said consequences for a default on a loan could be burdensome.
"The government has the right to take you to court, garnish your wages, take your income-tax check, and prevent you from working for federal civil services," Clemons said. "That's a host of positions you will be disqualifying yourself from."
Clemons said federal civil service jobs include working for the FBI, CIA, and many other federal jobs that are held in Washington.
But Clemons said there are several things put in place to help prevent students from a default loan.
Students can be eligible for deferment, which could help people who cannot find a job following graduation.
This allows students up to three years without paying on a loan without interest until they find jobs. Other reasons include being called to active duty for the military or having a baby. Deferment times allowed for these instances vary, she said.
If a student doesn't meet the deferment condition, he or she can receive forbearance, Clemons said. "Interest does accrue and capitalize even though you don't have to make immediate payments. If something happens, call your lender and keep them updated on your status if something happens," Clemons said.
Demarcus Hamilton can be reached at 536-3311 ext 270 or youngmh@siu.edu.
