Fill out and submit your FAFSA on January 1 or as soon after as possible, no matter how far away the actual deadline. Some federal aid, particularly grants and scholarships, is awarded on a first-come, first-served basis, so filing your FAFSA early ensures that you will receive the maximum amount of financial aid that you are eligible for.
Applying for federal financial aid online at the FAFSA website is easier than using a paper application. Not only will your FAFSA be processed faster, but the FAFSA website will catch common errors, allow you to skip questions that don't apply to you, and allow you to save and access your application any time using a personal identification number (PIN) that you can get at the FAFSA website. The online FAFSA also helps you avoid miscalculations by calculating and entering total amounts into the correct fields for you in the financial portion of the application.
File your taxes early because you'll need your tax information from the previous year to complete your FAFSA. Although you can estimate this information based on previous years and update the application later, filing your taxes early and having accurate financial information on hand before you begin filling out your FAFSA will make the FAFSA application process easier.
Keep all assets, savings and cash in a parent's name rather than the student's name to avoid losing out on some financial aid, as student assets are assessed at a rate of 20 percent while parents' assets are assessed at six percent. Students and their parents should also minimize liquid assets, such as cash and checking accounts, as more cash means less financial aid. Get rid of money quickly by making a few purchases and larger bill payments before filing the FAFSA. This is a good time to buy books, computers and other things you'll need for college and to get a jump start on bill payments for the next few months, or even the entire year. While doing so may empty your pockets, having little to no cash on hand will increase your eligibility for financial aid and save you money on college tuition in the long run.
If you are a working, dependent student, watch your earnings, as earning too much money can reduce the amount of financial aid you receive. As of 2010, the first $2,440 in income that you make is exempt, but wages beyond that amount will be assessed at a rate of 50 percent. This means that you lose 50 cents in financial aid eligibility for every dollar you earn beyond $2,440.
Gather all required materials before filling out your FAFSA. To complete your FAFSA, you will need your Social Security number; driver's license; W-2 forms and any other records of money earned for the previous year; federal income tax returns for the previous year along with your spouse's, if married; parents' federal income tax returns for the previous year, if you are a dependent; current bank statements; and alien registration or permanent residence card for non-U.S. citizens. If applicable, you will also need business and investment mortgage information, business and farm records, and stock, bond and other investment records.
Inaccuracies on your FAFSA can delay the processing of your application. The most common inaccuracies made include incorrect Social Security number, driver's license number, marital status, parent marital status and permanent address. "I," "You" and "Your" on the FAFSA refers to the student, not the parent. Make sure you enter the correct federal income tax amount paid, taken from your tax return rather than your W-2 forms, and the correct adjusted gross income, which is not the same as your total income. Round to the nearest dollar, and do not use commas or decimals when filling out numerical fields. Remember to list all the colleges you're applying to and obtain their Federal School Codes. If applying online, obtain a PIN before filling out your FAFSA, as this is your electronic signature for the online application. If you are not applying online, you do not need a PIN and can simply sign and date your application in ink.
Errors and omissions in your FAFSA can delay the application process or even result in an application rejection, making you miss out on some or all of your financial aid. Double-check every piece of information, down to your address and zip code, as you fill out your application before moving on to the next section and before submitting. Do not leave any fields blank either if using the paper application. If you don't know the answer or if the question does not apply to you, place a zero or "not applicable" in the entry field rather than leaving it blank.