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Understanding FAFSA and PROFILE for college

Planning for college can be exciting and stressful. While students are fretting over applications and transcripts, parents are worried about how to pay for it all. College tuition has increased 429 percent over the last 20 years, making funding a college education one of the biggest expenses in a parent’s life. One year at a large state school in South Carolina, such as Clemson, will cost around $17,000, while a year at a South Carolina private college, such as Furman, will cost about $45,000. However, if parents know how and where to find financial aid, grants and scholarships, college can become a much more affordable prospect.

According to the College Board, there is more than $168 billion available in student aid every year. FAFSA, the Free Application for Federal Student Aid, and CSS/PROFILE are the two types of applications for aid based on financial need. All colleges will require FAFSA but only some will also require PROFILE. It can be confusing for parents to know when to file one or both. Here’s a quick breakdown of both applications and a description of how they may benefit you.

First of all, a family’s FAFSA report will qualify them for federally funded grants and aid, such as Pell Grants, work-study scholarships and low interest student loans. A full description and free application is available online at FAFSA.ed.gov. There are other sites that offer a FAFSA application and charge a fee to file it. This expense is unnecessary; the official site has a help line and a detailed explanation of each question.

Families must fill out a new FAFSA application in the spring of each year if they want federal financial aid for the next school year. Colleges may require that you file FAFSA earlier than the official June 1 FAFSA deadline so make sure to check the college Web site for details. Since FAFSA factors in a variety of expenses, the number of college students in the family, even middle income and upper income families may find that their student qualifies for certain grants or aid.

Since FAFSA asks for much of the same information that is found on a tax return, President Obama has proposed that tax returns be used as a family’s financial aid application. No final decision has been made on this proposal yet but it could simplify the process for millions of families.

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