THE COLOR OF MONEY
College-bound students advised to start applying for financial aid now

By Michelle Singletary

If you have a child going to college in the fall of 2004, it's important you get moving to apply for financial assistance now.

January marks the first month that the Free Application for Federal Student Aid (FAFSA) may be submitted. This is the form of all forms when it comes to financial aid. Don't procrastinate when it comes to this application.

The FAFSA is used to determine eligibility for all federal financial assistance, which can come in the form of grants, scholarships, work-study programs and student loans. Additionally, many schools use the FAFSA as part of their application for nonfederal aid.

"With so many students depending on financial aid to pay for college, it is vital that applications are filed correctly and within deadlines," advises Martha Holler, a spokeswoman for Sallie Mae, the nation's leading provider of education financing.

While you have from Jan. 1 through June 30 to file the FAFSA for the upcoming 2004-2005 academic year, submitting it in January puts your child in the queue earlier for any aid that schools distribute, Holler said.

The FAFSA form is available through high school guidance offices, local libraries or online at www.fafsa.ed.gov. You can download a paper version by going to www.studentaid.ed.gov. Click on the link for forms.

Before you get started, here are some tips from Sallie Mae on filling out FAFSA:

• Keep track of deadlines. Schools and states may have different deadlines for receiving financial aid applications. Some schools require applications in addition to the FAFSA, so check with your target schools to make sure you have completed and submitted everything.
• Remember, with FAFSA it's first come, first served. By submitting your FAFSA as early as possible, you put your college-bound child in a position to receive as much aid as possible from as many sources as possible. It won't come as a surprise to you that scholarships and grants are limited at many schools so it's important to get the financial aid application in as early as possible.
• Fill out the form even if your household income is high. There are a number of factors in addition to your household income that are used to determine if a student is eligible for financial aid.
• If your child will be a sophomore, junior or senior in the fall, remember you have to submit a new application for aid. In some cases you may only need to submit a renewal FAFSA. Things change, and that means your child might be eligible for more aid if, for example, a sibling will be going to college in the fall.
• Get help. There are a number of free online Web sites to help you navigate filling out the FAFSA. Go to www.finaid.org and click on the link for financial aid applications. Sallie Mae's www.wiredscholar.com includes a checklist to help you gather the appropriate documents that you will need for the income, investments and income tax calculations. In addition, an Expected Family Contribution calculator will help you estimate what the government will expect you to contribute toward your child's education.
• Apply online at www.fafsa.ed.gov. Filing online gets your application into the pipeline sooner because it doesn't spend precious time in the U.S. mail. Filing online can also reduce the chance of errors because you will be alerted to missing or inaccurate information.
• Make sure you answer all questions. The most common error in filling out the FAFSA is leaving a field blank, according to FinAid.org. If an answer to a question is zero or the question does not apply, write in a 0.
• Keep a copy of the form. Once you have gathered all of the relevant information and completed this detailed form, keep a record for yourself.