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US government and civics
Course: US government and civics > Unit 9
Lesson 1: American civics- PPACA or "Obamacare"
- The fiscal cliff
- More fiscal cliff analysis
- The Electoral College
- Sal teaches Grover about the electoral college
- Primaries and caucuses
- Deficit and debt ceiling
- Government's financial condition
- Social security intro
- FICA tax
- Medicare sustainability
- SOPA and PIPA
- Pension obligations
- Illinois pension obligations
- Introduction to the FAFSA
- History of the Democratic Party
- History of the Republican Party
- Constitutional powers of the president
- Presidential precedents of George Washington
- The President as Commander-in-Chief
- Expansion of presidential power
- Why was George Washington the first president?
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Introduction to the FAFSA
The FAFSA, or Free Application for Federal Student Aid, is a crucial tool for students seeking financial aid for college. It's a free form that calculates an Estimated Family Contribution (EFC) based on family income and expenses. Colleges use this EFC to create a financial aid package. Remember, always use the official site, FAFSA.ed.gov, to avoid unnecessary fees!
. Created by Sal Khan.Want to join the conversation?
- At what age does FASFA only use your own tax return info and not your parents?(12 votes)
- The age limit of 24 years old is one of several categories that distinguish an Independent Student from a Dependent Student. For official details from the Dept. of Ed., see: http://studentaid.ed.gov/fafsa/infographic-accessible(13 votes)
- hello i am from the future 👽(4 votes)
- I would command you to "Go back to where you came from," but I think it would be more correct to say "Go forward to where you came from." :)
Note: I know you were trying to be funny, but please only post comments that relate to the video, article, or program in question. At least don't post it in the "questions" section because it clogs the Que of answers.(2 votes)
- Is FASFA only in the USA?(4 votes)
- The FAFSA is built for the US higher educational system.
But I'm not clear entirely what you mean. The FAFSA is used only by institutions in the USA. It is used to evaluate how much money you will receive from federal and state grant subsidies, and "institutional (need-based) aid". However, US students who wish to attend school internationally can use the FAFSA for other Federal loan programs and such.
If you are asking if it is only for US citizens, the answer is no, however, it is not designed for foreign students. You can be a US National and apply. If you are a non-citizen but you are a permanent resident, conditional permanent resident, refugee (or the like), or if you are a citizen of one of the few microscopic-sized islands the U.S. happens to administrate (such as the Republic of the Marshall Islands), you can also apply.
This is a good resource for additional information (brought to you by the US Gov't):
http://studentaid.ed.gov/prepare-for-college/choosing-schools/types/international(1 vote)
- After watching the video, I don't understand what types of savings does the FAFSA include in the EFC? I've heard that retirement plans like 401(k), 403(b), Roth IRAs and Traditional IRAs, from which you can borrow for college savings, are not included in the calculation; while 529 plans are included in the EFC. Is this true? If this is true, and only the 529 balance will be included in the EFC, then it seems like 529 plans are self-defeating because every dollar you save just adds up to a dollar you are judged able to pay. In sum, what is the best strategy for maximizing savings while minimizing the EFC, thereby maximizing the family's actual ability to afford college?(2 votes)
- The key difference is that the 529 plan is designed to help people save up for college, by allowing capital gains to accumulate tax free as long as the funds are used for tuition and other specified expenses (it varies a bit among 529 plans - some will cover a computer purchase, for example). The other plans are specifically for retirement. Yes the existence of a 529 plan reduces the level of financial aid dollar for dollar, but consider that a) low income families probably don't have a 529, and b) most financial aid packages include some form of loans that need to be paid back, so the 529 plan can reduce the amount of debt the student takes on.(4 votes)
- Can students that have been granted "deferred status" get aid through the FAFSA?(3 votes)
- Now a days, many students apply to colleges before you can even fill out the FAFSA, so how can admission make any decisions based on need?(3 votes)
- Some colleges require that the applicant fill out an approximate income for their home for the previous year.(1 vote)
- When should student begin filling out these forms? Junior year, senior Year? Also, are step parents income included?(3 votes)
- How soon should I start filling out the FAFSA form? I'm a junior right now.(2 votes)
- It would make sense to fill out FAFSA before or during the time when you apply for colleges.(2 votes)
- What is the technical difference between Need Blind and Need Sensitive ? I watch the video twice, and the only thing I found is that Need Blind covers up to 100% of the applying student's fees, while the majority of current schools, due to budget constraints, would require Need Sensitive, which is information about the student's family's ability to contribute financially to his tuition fees.(1 vote)
- All schools take both approaches. "Full-Ride Scholarships" are need-blind: they're getting that scholarship based on MERIT, not need. The school wants that student because their academic or athletic performance is so high & expected to contribute to the school's overall performance "portfolio." If the school thinks that student is going to make the school "look good" and draw positive publicity, they will do whatever they can, especially pay for everything, to get that student there.(2 votes)
- Are academic scholarships typically subtracted from a financial aid packet? Or are they part of the financial aid packet?(2 votes)
- From my understanding, they are part of it,(1 vote)
Video transcript
Sal: So I'm here with Sean Logan, who's the Director of College Counseling at Phillips Andover
Academy, and Jim Ventre, Ven-tree, am I pronouncing it right, Jim? Jim: Ven-tree, yes. Sal: Ven-tree, who's the Director of Admissions and Financial
Aid at Phillips Andover, and what we're hoping to talk, or start talking about in this
video, is really just the financial aid process, and
in particular, the FAFSA, so, I guess, wait a
minute, I should probably do that in all caps, my first question for either of you is, I
guess, "what is the FAFSA, "and what does it actually stand for?" Sean: Right, so the FAFSA
is the free application for federal student aid,
and it's really important for students to realize
that free part of this name, because there is an
opportunity to get on the web and go to FAFSA.com and
somebody will happily help you with it, but
you need to pay for it. So the first thing we talk
with students a lot about is the FAFSA is a free form. You should not be paying for it. And the title again, it's
by the federal government, they use a rubric to sort of figure out, based on this form, how
much your family should contribute to a college education. Sal: And it's Free Application
for Federal Student Aid? Sean: Student, yes, student aid. Sal: And just to hit
the point home of what you just said, it should
absolutely be free, and there are places where
people will charge you to kind of optimize it, or
fill it out for you, or... Sean: That's correct, so the first thing, normally when you start to type in on a search engine, FAFSA, a lot of times FAFSA.com pops up. It's a legitimate site,
but they charge you something like 80, 85 dollars to help you fill out the form. So you want to go to FAFSA.ed.gov to start this process. Sal: .ed.gov, and there it will be free, and what is, when you
fill out this form, in a future video we'll actually take a look at the form itself, but what do you input
into it, and what comes out of it, and then who
uses that information? Jim: I think for many
students who are applying to college right now, they are accustomed to telling their story,
in essays and in various pieces of their application,
and they have to think of the FAFSA as just their family's financial story, and
their financial story has many variables, but most
importantly, the things that the FAFSA asks for are
simplified as things that would be questions that
students could probably answer right off the top of their head, in terms of their family
income, and whether they own a home, or whether
they rent where they live, it's things like that. Sal: And, I mean, I
remember filling this, we were talking about this
before, I guess clicking record, all of us were
significant recipients of financial aid, of
need-based financial aid, and I remember filling it out, I remember I kind of had my mom's
tax form, which I had to fill out for her, right
before filling out the FAFSA, Sean: Exactly (laughing) Sal: But that's essentially, I remember, at least this was in the early nineties, kind of the inputs that I
needed to be able to fill out most of the form. Sean: And that's correct,
yeah, I mean, one of the things that specifically
looking at, in working with a lot of low-income
families, one of the things to realize, is that it generally is actually a pretty simple
form, because there aren't a lot of things
that make it complicated. There aren't trust funds,
there aren't investments, there aren't probably, in a lot of times, sometimes there are homes that are owned, but a lot of times they're just renting. Usually it's a paycheck that comes in, and it's sort of a standard
paycheck that comes in for the year, so it's actually a pretty simple form, it's just
getting students to step up and do it, is the real challenge. Sal: And the reason obviously, it's pretty obvious why they care about income, that's kind of the total amount of money your family's making, but then the reason why they care about things
like home ownership, and if I remember
properly, they ask things about the number of siblings you have, and they try to understand your family's expenses too, and the
whole reason is to kind of figure out their ability
to pay for college? Jim: That's right, so at
the outset, students are asked questions to fill
out on their family's financial circumstances,
basically what the colleges are trying to do, is come to a conclusion, which allows them to have a
picture of what the family is up against every month, every week, and what's left in the bank, so to speak, at the end of all the
family operating expenses. Sal: And so what, after
you fill out the form, where does that go, this is at the Department of Education site, but do they process it, or do they just give the form to the universities,
what happens after that? Sean: That's a great point Sal, I think one of the misperceptions
about the FAFSA is, I'm gonna submit this form to the government, basically, and
then they're gonna crunch all these numbers, and then
they're gonna determine a financial aid package for my family. I think that's a really
common misperception. All the FAFSA does, is it
looks again at your family's income, number of kids in the family, other assets, those
sorts of things, and it determines an Estimated
Family Contribution. What a college does with
that varies greatly. And I think that's something that families need to understand. So all it is going to do
is determine a number. That number might mean
your family should be able to contribute 1000 dollars towards your son or daughter's education, 5000 dollars, or zero dollars for that matter, but that's all it does. Sal: I see, and the reason
why this exists is so that colleges would
have a somewhat uniform way of looking at this,
and they can feel good that the data is real? Jim: That's right, and so
one of the things in this Estimated Family Contribution
is sort of this sense that the family is
self-reporting where they stand in their family circumstances financially. And one of the things
we want to caution about is that when you receive a sort of Estimated Family Contribution,
or what they call the EFC, you want to make
sure that's in line with your expectations, because
sometimes that number can seem odd to the family
when they understand where it came from, and they may have made a mistake in some way on the form. Sal: I see, but then that Estimated Family Contribution, then that gets
sent to the universities that you have, usually at
this point, have gotten admission to. Sean: It'll go to every
university ahead of time, so if the student
applies to seven schools, you're gonna want it there
well before decisions come out, there are usually
very strict deadlines to get things there in time, but then, usually what happens in
the admissions office is if Sal, if I'm reading your application in the admissions office, and I say great, Sal Khan is gonna be
admitted, and I call down to our financial aid
office, this is all done electronically now, but
the financial officer, what he will do is open
up your electronic file, and he will see the
FAFSA sitting in there, and then he will see
that, and it will say, ok, the Khan family should be able to pay 1000 dollars towards Sal's education, we cost 50 thousand
dollars, so now we're gonna have to create a financial aid package for 49 thousand dollars to make it possible for you to come here. Sal: And so that's before you've been officially admitted? Sean: It's typically
when you get admitted, then the admissions
office will say, ok now calculate a financial aid package. Sal: And are these, I can imagine a lot of students would worry about this, are these kind of separate processes,
you know, or will the admissions officers
be able to see the kind of Estimated Family Contribution,
and then does that have the potential to kind of affect your chances of admissions? Jim: Oh absolutely, I
think colleges are mindful of the programs that they
have in place to support these students, and so the
college's overall mission plays a role in how they're
distributing financial aid, and the way they view
students that they are going to support, through what
they uncover in the FAFSA. Sean: And Sal, let me add to that, there's two important definitions here. One is institutions
that are need blind, and institutions that are need sensitive. And that's an important
question for students to ask as they are starting to research colleges. Typically need blind
schools mean, whether or not you are applying for aid has no impact on an admissions decision. And, we will fund you
to 100 percent of your demonstrated need, based on the FAFSA. Ok, so that's an important one. Needs sensitive, and this
is getting to your point, there are schools, and
again, the great majority of schools are need sensitive,
because they have limited budgets, so they might
take into account at some point in the process, financial aid. If we're sort of talking
to really high-achieving, low-income students right now, typically they are still gonna make out very well, because even though the school might take into account need, and
the student may need as much as a full ride,
if they were really top, top students, that's
still somebody they are going to support and probably pay for. If you are a student that's not as strong, that's when you might get
caught in exactly what you are asking about, is though you need x number of dollars,
you're sort of right in a range where we have
a lot of choices, that may make you less attractive. So, again the story I
always tell students is, the better student you
are, not only the more opportunities you'll have for admission, but the better financial aid packages you'll be eligible for. Jim: That's right. Sal: And is it possible it might even go the other way, where when
they look at your need, and they say wow, he or
she comes from a family that didn't have all the resources of many of our other applicants,
that that actually could be a positive, when you apply? Jim: Oh absolutely, I
think the, for example Andover operates on a need blind admission initiative, and we're
looking for students who meet the demands of our
program, and when you see students who may not have
had all the preparation in terms of leading up
to coming to Andover, it's very compelling to
find students who could manage the rigor of our
program, and not have had that preparation, and so we would be very attracted to
them, and want to provide a financial aid package that supports them at our school. Sal: Right.
Jim: Colleges operate the same way. Sal: And Phillips Andover, obviously a well-recognized high
school, and colleges, you're saying, are operating in a very similar way, or many do. Jim: Exactly, yes they do. Sal: Very cool.