FAFSA -- The Most Important Component of The Financial Aid Package

• Without federal and state grants, most people would be unable to attend college. Students need to submit the Free Application for Federal Student Aid, or FAFSA, to the U.S. Department of Education. It is important to understand FAFSA not only because filling out the application properly yields the maximum state and federal awards, but also because other grant providers depend on the information.
  
  

Expected Family Contribution

• Once you submit data on the FAFSA, the Department of Education determines your Expected Family Contribution, or EFC. The EFC is the difference between the amount that you can spend towards your education and the balance that the college requires. The financial aid officer uses the EFC and FAFSA to determine how much financial help you will need. For example, the maximum Pell Grant, an income-based grant, for which you may be eligible in 2011 is $5,550.
  
  

Student Aid Report (SAR)

• You and the financial aid officer will receive a Student Aid Report. The report summarizes the data that you submitted on FAFSA, which you should confirm is correct. Some federal and state funds for which Pell Grant recipients may be eligible are the Federal Supplemental Educational Opportunity Grant and TEACH Grant. These are campus-based grants, and the financial aid officer should be informed if there are any changes in the family's income.
  
  

Federal College Grants

• The Federal Supplemental Educational Opportunity Grant, which is an income-based grant, awards as much as $4,000. Pell Grant recipients also may be eligible for Academic Competitiveness Grants, which awarded $750 to freshmen and $1,300 to sophomores for 2011. Pell Grant recipients may be eligible for National SMART Grants, which awarded a maximum of $4,000 in 2011. The Academic Competitiveness and SMART Grants are merit-based.
  
  

State College Grants

• State grants are awarded to students who attend college where they live. Some examples of state grants are New York's Tuition Assistance Program, California's Cal Grant and Texas's Toward Excellence, Access and Success. The maximum each program pays is around $5,000, $11,000 and $5,000, respectively. TEACH Grants, which are also state grants, paid $4,000.
  
  

Let the Government Pay for Your Education

• Federal and state college grants are based on the information on the FAFSA. Students must complete the form accurately to be eligible for grants from the government or college, particularly since they are certifying that the information is true and accurate. The government grants may be enough to pay the full cost of a college education.