Students entering college for the first time, along with those already enrolled, are required to fill out the FAFSA in order to obtain and receive: college-sponsored financial aid, Federal Stafford Loans, Federal Pell Grants, Perkins Loans, Federal Supplemental Educational Opportunity Grants and work study programs. Generally, secondary institutions ask students to submit the FAFSA even if they're not looking to receive any financial assistance.
The FAFSA is reviewed by the U.S. Department of Education to determine the amount of money a student will need to cover education costs and calculate his Expected Family Contribution (EFC). According to the Student Financial Aid Services Web site, "The predetermined EFC formula is based on financial information, such as income, assets and other household information, which you (and your parents if you are a dependent student) will be asked to provide. The form is submitted to, and processed by, a federal processor contracted by the U.S. Department of Education (ED), and the results are electronically transmitted to the financial aid offices of the schools that you list on your application."
In order to be eligible for FAFSA, a student must fit the following criteria: Be a U.S. citizen or eligible non-citizen, have a valid Social Security number; be registered with Selective Service if you are male 18 to 25 years of age (go to www.sss.gov for more information); have a high school diploma or a General Education Development (GED) Certificate or pass an exam approved by the U.S. Department of Education; be enrolled or accepted for enrollment as a regular student working toward a degree or certificate in an eligible program at a school that participates in the federal student aid programs; have no drug convictions for an offense that occurred while you were receiving federal student aid (such as grants, loans or work-study); not owe a refund on a federal grant or be in default on a federal student loan; and demonstrate financial need.
Once a student submits a FAFSA, a Student Aid Report (SAR) is sent, notifying her of the financial aid and grants she's eligible to receive. In terms of how long it takes for the application to be processed, the FAFSA Web site supplies the following information, "If we have a valid e-mail address on file for you, we will send you an e-mail within 3 to 5 days, with instructions on how to access an online copy of your SAR. If we do not have a valid e-mail address on file, your SAR will be mailed to you via regular mail within 7 to 10 days. The schools that you listed on your FAFSA application will also receive your information electronically as soon as it is processed."
The new FAFSA for 2010 is available online after the first of January. Students must submit their FAFSA prior to the deadline. FAFSA deadlines vary from March 1 to May 1, depending on which school and state it's being used for.
The 2010 FAFSA application marks the changes put forth by the Obama administration in an effort to encourage more students to apply for financial aid and pursue higher education. The 2010 FAFSA contains 20 percent fewer questions than the 2009 FAFSA.