FASFA Essentials

Intro

How 'bout that theme music, huh? We're trying our best to make this podcast as enjoyable for you guys as we can. We'll be adding new parts here and there, including our first guest speaker in our next episode! In this episode, Josh and Jack discuss FAFSA Essentials, which are helpful for parents, students, or anyone that knows someone in college.

Borrowing Money

There are a couple types of aid offered by the government for schooling: grants and loans. Grants are free money that you don't have to pay back, like a scholarship. Loans are money you borrow up front and have to pay back over time. Grants are a great source of free funding, but not everyone qualifies for them so government loans are a solid second option because the government is more lenient than many private lenders with things like the interest rate and your grace period.

If you receive grants, take them! If you receive loans, you can adjust the amount you borrow for what you actually need.

Dates

Application opening: October 1st

Priority deadline: Check with your school to clarify the priority deadline. It can ensure you receive your funding.

Final deadline: June 20th, 2020

Average Completion Time: Only 31 minutes!!!

Resources

https://studentaid.ed.gov/sa/ - This is where you will apply for FAFSA, but it has many great features, like the Loan Repayment Calculator

My Student Aid App - You can fill out your FAFSA here too, and see all your present and past loan information

Office of Student Financial Asistance at your school - They can help you if you get stuck on your application or have questions.

Older siblings or friends - They have gone through the process and can help you fill it out.

Closing

"Money Tip of the Week"

The Rule of 72! Divide 72 by your interest rate, and it will show you how long it will take for your money to double. For example, 72/8% means your money will double in 9 years!

Three Takeaways:

1. Apply for FAFSA, no matter what

2. Round up your materials beforehand. It makes the process so much quicker and easier.

3. Check your credit report at the same time as your FAFSA. Check out our "How Credit Works" podcasts if you have more questions about credit.