Learning Curve: Know these tips to leverage financial aid options for school

Applying to college or vocational school is a process with lots of moving parts, and one is how to pay for your schooling. The good news is that financial aid from the U.S. Department of Education can help.

The first step is to complete the Free Application for Federal Student Aid (FAFSA), and you can do it at fafsa.ed.gov. You’ll fill out this application every year you’re in college to find out if you qualify for need-based Pell Grants, federal student loans and work-study opportunities for the next academic year. FAFSA information is often used to determine eligibility for non-federal student aid, too. Applying for financial aid is separate from applying for admission, and there are separate deadlines for each.

The New Mexico public school priority date for the FAFSA varies from school to school. It’s usually anywhere between Jan. 1 and March 1, but you can submit after that date if need be. The earlier you do it, though, the better — so you don’t miss out on some federal and institutional aid. If you do file after the priority date, you will still receive the Pell Grant if you are eligible. You’ll also qualify for most federal loans, but not for grants and loans that are in limited supply. In addition, filing after the priority date can jeopardize a potential work-study job.

Most private schools require that the FAFSA be done earlier than public schools, and they also require the College Scholarship Service (CSS) profile, a more detailed inventory of your family’s assets. If your schools want this, it will probably be due the same date as your FAFSA. Unless you can pay outright for your college education, it’s important to stay on top of school deadlines. You can fill out the CSS at collegeboard.org.

A new and permanent change was made to the FAFSA this past fall, which is that the application goes live Oct. 1 rather than Jan. 1. This simplifies the process because you now use a tax return which has already been submitted. For the 2017-18 academic year, you’ll use your 2015 tax returns. For the 2018-19 year, you’ll use your 2016 returns and so on.

Another positive change to the FAFSA is that rather than working from a hard copy of your parents’ and your own tax returns, you can use the IRS data retrieval tool while filling out the FAFSA. When you come to the financial section, you can link to the IRS website and your FAFSA will be populated with income information taken directly from the tax returns you and your parents filed with the IRS.

Once you finish your FAFSA, your information will be processed by the federal government and sent to the schools you listed. Your schools will analyze your circumstances and send you a letter outlining your financial aid package. This is a breakdown of what it costs to attend their school, what they think you and your family can contribute to your education, the amount of grants and institutional scholarships you may be eligible for and which loans are available to you.

If you would like help with your FAFSA or deciphering and comparing financial aid award letters, contact us at (575) 758-5074 or at info@bridgesproject.org. This is significant information that can impact your decision about which college you attend.

Goldberg and Montoya-Dye are Bridges Project co-directors/college counselors.