Financial Aid and FAFSA
Financial Aid Process
Introduction
Financial Aid is the backbone of the college financing process and enables millions of students to attend college who would likely not have been able to do so without it. It often makes up the difference between the costs of going to college, and the amount a family has been determined to be able to contribute. It is a process separate from the college application process, but must be completed at the same time! The financial aid process can be boiled down to five important steps:
- Filing a financial aid application
- Submitting financial aid application before financial aid priority deadlines
- Receiving the Student Aid Report (SAR) and Expected Family Contribution (EFC)
- Receiving a financial aid awards package
- Dealing with the “gap”
- Financial aid appeals
Filing Financial Aid Applications
The financial aid process begins in earnest during the first semester of a student’s senior year, and features an application process and deadlines that are completely separate from the student’s college application process and deadlines! The first step in the process is to fill out financial aid applications. The following are financial aid applications that may be required as part of the financial aid process.
- FAFSA – The FAFSA (Free Application for Federal Student Aid) is required by every college if a student is seeking financial aid. It requires all of the family’s income and tax information from the year two years prior to the student’s first year in college. It can be accessed on/after October 1 at fafsa.ed.gov. You must first create your federal student aid ID before you can complete the FAFSA (fsaid.ed.gov).
- CSS Profile – Some of the more exclusive, higher priced colleges and universities, and some scholarship programs, also require that families file a CSS Profile, a financial aid form administered by the College Board. This is completed in addition to the FAFSA, and is more detailed than the FAFSA. For a complete listing of colleges that require CSS Profile, go to www.cssprofile.collegeboard.org/ for more information.
- Institutional Forms – Some colleges may require students and their families to complete a separate financial aid form unique to that particular school. This will always be in addition to the FAFSA. Be sure to check with college financial aid offices to determine if they require such a form.
Submitting FAFSA by Financial Aid Priority Deadlines
As important as completing and submitting the necessary financial aid applications are meeting the application priority deadlines! Financial aid application deadlines are set by each college, and are often different with each college. Financial aid application deadlines are not to be confused with the college application deadlines! The one thing to remember here is that each college has a limited pool of financial aid available to offer students, and most of it is given away to those who apply by the priority deadline. If a financial aid application is submitted after the college’s priority deadline, the student may be accepted, but will be offered a very limited financial aid package, often making that college unaffordable. Check with each college’s financial aid webpage to determine priority deadlines.
Student Aid Report (SAI)
The student aide index is an index number used by college financial aid offices to figure out how much federal, state, and school student aid you can get. The lower the student aid index the more financial aid you will likely be eligible to receive. The SAI is sent to each college to assess your financial need.
Part of colleges’ admissions decision process is evaluating a student’s financial aid application. Once accepted, and based on information submitted in financial aid applications and forms, a student will also be notified of their financial aid awards package that can range from nothing at all, to a combination of grants, scholarships, work-study and loans (see below). It is the student’s and their family’s responsibility to evaluate each package and determine the best overall financial fit. If the student decides to accept an admission offer, they must also decide to accept all of the financial aid offer, parts of the offer, or nothing at all, and inform the college.
Grants: Free funds given to students based on financial need as demonstrated in student financial aid application(s). Grants are free awards and do not need to be paid back. Common grants in typical financial aid packages might include:
- Pell Grant: A federal program that provides need-based grants to low- income students; up to $7395 a year right now.
- Supplemental Education Opportunity Grant (SEOG): A federal campus-based program that provides need-based grants of up to $4,000 a year.
- State of Maine Grant Program: For Maine students attending college in Maine on a full-time basis. Up to $2,500.
Loans: A number of loans are offered as part of financial aid, and some of the following may appear in a typical award package. Not all loans are created equal, and it is buyer-beware when it comes to the terms of the loans. The following are the most common:
- Perkins Loan: A federally funded campus-based program that provides low-interest student loans. Repayment need not begin until completion of the student’s education, and it may be deferred or forgiven for public service after graduation. Up to $5500 a year for freshmen. Not all schools participate in this program.
- Stafford Loan: The most common federal direct loan program. Stafford subsidized loans are need-based; the federal government pays the interest on subsidized loans while the borrower is in college. Unsubsidized Stafford loans are available to any student regardless of need; but the interest begins accumulating immediately. Up to $5500 a year for freshmen.
- PLUS Loan (Parents’ Loan for Undergraduate Students): A federal direct loan program that permits parents of undergraduate students to borrow up to the full cost of education, less any other financial aid the student may receive.
Merit Aid: Free funds given to students who qualify by virtue of academic, athletic, or other unique talent, leadership qualities, or other performance measures. Students often qualify with their GPA and/or SAT scores. Merit aid most often comes in the form of institutional scholarships. This is a free award and does not need to be paid back.
Work-Study: A campus-based financial aid program that allows students to meet some of their financial need by working on or off campus while attending school, usually 10-15 hours per week. The money is distributed to the student in the form of a paycheck. While work-study is not free, as it requires a certain number of work hours per week or semester, once earned it does not need to be paid back
Gap
In a perfect world, the family can afford to pay the amount indicated through the FAFSA and SAI and financial aid (grants, loans, work-study) is supposed to cover the rest. However, often financial aid does not cover 100% of the remainder of the bill. That difference is known as a “Gap”. Colleges are not responsible for helping a family pay the gap, although they sometimes offer loans. The Gap can often make or break a family’s ability to afford a particular college, as they must be able to come up with even more money then anticipated. Pay attention to the “percent of need” met by each school. If a school only meets 75% of need, that means that there is an additional 25% not being met, which is the gap. Check out FAME’s The Loan For Me program (www.theloanforme.com) for alternative college loan options. It is important to remember that often bank loans require a cosigner as most students will not be able to sign for a loan independently.
Financial Aid Appeals
It is fairly common for families to feel that financial aid awards are not enough to meet their needs, often due to a gap, or are not as much as they expected. In these situations it is always possible to file a financial aid appeal with the financial aid office of any individual college. While there is no guarantee that a college will increase or change the financial aid award, on occasion they do. It is not uncommon for a student to receive extra money in unsubsidized student loans as a result of an appeal. A financial aid appeal is always done in writing, and addressed to the Director of Financial Aid for each individual college. It is important to contact each college before writing the appeal to inquire about that college’s appeal process.
Financial Aid Resources
F.A.M.E.
The Finance Authority of Maine (FAME) is an organization dedicated to helping Maine families with all things financial aid. They provide informational presentations online for OOBHS every year. FAME financial aid counselors are also available Monday through Friday from 8 am to 5 pm to answer any-and-all questions you may have about the financial aid process or your specific FAFSA. Call FAME at 800-228-3734, email at education@famemaine.com, or go to www.famemaine.com for more information. They are the financial aid experts!
Financial Aid and FAFSA Help Sessions
The Finance Authority of Maine (FAME) conducts FAFSA Help Sessions throughout the fall and winter. Go to www.famemaine.com/events to sign up for these limited space sessions. All these sessions are designed to prepare families for the often-complex financial aid process that officially begins on October 1 each year. These sessions tend to be scheduled later in the fall.
This is the federal government website for information regarding the FAFSA and federal financial aid, and is an important resource in the financial aid process.
College Cost Calculators
The United States Congress passed legislation that requires every college to provide a net-price calculator on their financial aid webpage to help families determine the actual cost of attending college. These on-line calculators are not standardized and come in various forms and formats. It is highly advisable that families use these when evaluating colleges for financial fit, and certainly to evaluate financial aid awards packages once received. There are also many private organizations in the college industry that are unaffiliated with any specific colleges that offer net-price calculators as well. College Board provides a good one which can be found at https://bigfuture.collegeboard.org/pay-for-college/college-costs/college-costs-calculator.
FSA ID and Tracking Sheet
A Federal Student Aid (FSA) ID is required to gain access to the Federal Student Aid’s on-line system and FAFSA and serves as your legal signature. Each student needs a FSA ID, and one parent will also need a FSA ID to sign the student’s FAFSA. Each student and parent must create their FSA ID separately at fsaid.ed.gov. Only create an FSA ID using your own personal information and for your own exclusive use. Use the Tracking Sheet on the back side of this page to keep track of important information related to your FSA ID. Keep this form and all related information confidential and store it in a secure location.
Steps to Create a FSA ID
- Go to fsaid.ed.gov, or, if you are ready to do a FAFSA, start your FAFSA at fafsa.ed.gov and click on the Create a FSA ID Link.
- Create a username and password, and enter your email address.
- Enter your name, date of birth, Social Security Number, contact information, and challenge questions and answers.
- Review your information, and read and accept the terms and conditions.
- Confirm your email address using the secure code which will be sent to the email address you entered when you created your FSA ID. You can use your FSA ID immediately to file and sign your FAFSA even if you are not able to confirm your email with the secure code.
Tips to Remember When Creating a FSA ID
- Be sure to enter your information accurately. Your information will be verified by the Social Security Administration and making a mistake, especially with your social security number, birth date or name, will cause delays.
- Use the FSA ID Tracking Sheet on the back of this page to record information used to create your FSA ID. You will use your FSA ID for multiple purposes over the coming years, so be sure you can remember all of the important information associated with your FSA ID.
- An email address can only be associated with one FSA ID. Students and parents cannot use the same email address.
- Avoid using your high school email address. It will likely expire over the summer. You will need to use your FSA ID for years to come, so link it to a permanent email address.
- You must have access to your email when creating your FSA ID. A secure code that you will need to create your FSA ID will be sent to your email. Entering this secure code will confirm your email address, which is very important if you forget your username or password, and will allow FSA to communicate with you electronically.
- If you have a PIN, enter it during the FSA ID creation process. Entering your PIN will save a few steps and result in immediate verification of your FSA ID with the Social Security Administration.
- Your FSA ID can be used immediately to access and sign the FAFSA. However, you will not be able to use it to update or correct the FAFSA, or enter any other FSA websites until it has been verified with the Social Security Administration (1-3 days).
FSA ID Tracking Sheet
Student Information
Student email address: ___________________________________________________________________
Username: ____________________________________________________________________________
Password: _____________________________________________________________________________
Answers to Challenge Questions (case sensitive)
Challenge Question/Answer 1: _____________________________________________________________
Challenge Question/Answer 2: _____________________________________________________________
Challenge Question/Answer 3: _____________________________________________________________
Challenge Question/Answer 4: _____________________________________________________________
Significant Date Answer (MM/DD/YYYY): _________/__________/__________
Parent Information
Parent email address: ____________________________________________________________________
Username: ____________________________________________________________________________
Password: _____________________________________________________________________________
Answer to Challenge Questions (case sensitive)
Challenge Question/Answer 1: _____________________________________________________________
Challenge Question/Answer 2: _____________________________________________________________
Challenge Question/Answer 3: _____________________________________________________________
Challenge Question/Answer 4: _____________________________________________________________
Significant Date Answer (MM/DD/YYYY): __________/__________/__________
Financial Aid Checklist
- Watch the FAFSA video sent in the school counseling newsletter or on google classroom
- Sign up for FAME’s Financial Aid and FAFSA seminars if necessary at www.famemaine.com/events.
- Use the FSA ID Directions and Tracking Sheet to create your Federal Student Aid ID in preparation for the FAFSA (fsaid.ed.gov)
- Determine if any of the colleges on your application list require the CSS Profile and submit if necessary (cssprofile.collegeboard.org/)
- Identify each of your college’s financial aid priority deadlines (college websites’ financial aid page), and plan to submit FAFSA well in advance of your FIRST DEADLINE
- Use FAFSA Filing List to gather necessary materials to prepare for the FAFSA
- Begin and complete FAFSA (fafsa.ed.gov) as soon as possible after Oct 1, 2026
- Review Student Aid Report for accuracy. If necessary, make any adjustments or corrections and resubmit FAFSA
- Review and evaluate the financial aid awards package and decide if you want to accept awards. Contact the college financial aid office to communicate your decision.
- If you are unsatisfied with the financial aid award and wish to appeal, contact the college financial aid office and inquire about their process for appeals.
- Watch Scholarship Video on School Counseling webpage and begin scholarship search as soon as possible (this is not a required step, but optional and recommended)