How to Choose the Best Federal Student Loan Repayment Plan

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If you have federal student loans, it’s important that you understand your loan repayment options. For example, did you know that you have the option to choose a repayment plan? That’s right. While your loan servicer (the company that handles the billing and other services on your federal education loan) will automatically place your loan on the Standard Repayment Plan, you CAN choose another plan.

The Department of Education offers several traditional and income-driven repayment plans with different payment options. So, make sure to take the time to understand these options and find the plan that works best for you.

Generally, our repayment plans offer three types of payments:

  • Fixed Payments: Our Standard Repayment Plan and Extended Repayment Plan offer payments that remain the same amount for the life of the loan.
  • Graduated Payments: Our Graduated Repayment Plan and Extended-Graduated Plan offer payments that start out low and gradually increase every two years.
  • Income-Driven Payments: Our three income-driven repayment plans offer payments that are calculated based on your income.

Choosing a repayment plan can feel overwhelming. Don’t worry—there are several resources available to help you understand the repayments plans, determine your eligibility for each plan, and make the right decision for you.

  • Use our online Repayment Estimator to find out which plans you may be eligible for and to estimate how much you would pay under each plan. (If you log-in, the Repayment Estimator will use your actual loan balance to estimate your eligibility and payment information.)
  • Get detailed information about each repayment plan on our website.
  • Watch our Repayment: What to Expect video to get a high-level overview of the repayment plans.
  • Check out our Repayment Plans infographic for an easy-to-understand visual that will give you some key points to keep in mind as you are choosing a repayment plan.
  • Read our Repay Your Federal Student Loans fact sheet for additional information on loan repayment and the repayment plans.
  • Contact your loan servicer to discuss your options and choose a federal student loan repayment plan that’s best for you.

Remember, the repayment plans discussed here are for federal loans only. If you have private loans, check with your lender about available repayment options.

For more information on federal student loan repayment plans, visit Studentaid.ed.gov/repay-loans.

Tara Marini is a communication analyst at the Department of Education’s office of Federal Student Aid.

How to Make Student Loan Payments Based on Your Income

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Maybe you’re just getting out of school and you got a letter from your student loan servicer about repayment, or maybe you read on a blog or in the newspaper about an income-driven repayment plan. Maybe you’re not really sure what they are, how they work, or what they could mean for you. Let me give you the fundamentals.

First, let me explain the naming. “Income-driven repayment” is an umbrella term for three different repayment plans available to those with federal student loans:

  • The Income-Based Repayment Plan
  • The Pay As You Earn Repayment Plan
  • The Income-Contingent Repayment Plan

Notice how the names of all three plans reference “income” or “earnings”? Well, that’s because, under these plans, your payment amount is based on how much money you make. To really understand the differences between income-driven and “traditional” repayment plans, you must understand how your payment amount is calculated under each type of repayment plan.

How Monthly Payments Are Calculated

“Traditional” repayment plans are those such as the Standard and Extended Repayment plans. These traditionalists take three variables—the interest rate, principal balance, and repayment period—and determine the least amount of money that you can pay each month to pay the loan off by the end of the repayment period (usually 10-25 years, but sometimes as much as 30 years). This means that borrowing more, having a higher interest rate, or having a shorter repayment period will increase your monthly payment (and vice versa). Those three variables are all the traditional repayment plans care about—they don’t care if you can afford that payment, they just want your loan to be paid off within a specific time frame.

Income-driven repayment plans take these variables and stand them on their heads. These plans say, “you’ll pay what you can afford: a percentage of your ‘discretionary income’” (hint: that’s something less than your total income). Depending on the plan, that may be 10%, 15%, or something else. What you ultimately pay depends on the plan you choose and when you borrowed, but in all cases, it should be something you can afford. Sometimes, it can be as low as $0 per month.

Student Loan Forgiveness and the Income-Driven Repayment Plans

Because your payment under the income-driven repayment plans is not calculated to ensure that your loan is paid off within a specific time frame, the plans have another special feature: loan forgiveness. These plans do have a repayment period—20 or 25 years. However, it’s not the point at which your loan must be paid off; instead, it serves as a counter toward loan forgiveness. Under these plans, if your loan is not repaid in full at the end of your repayment period—20 or 25 years—then the remaining balance will be forgiven. Let me be clear: this is not to say that everyone who selects an income-driven repayment plan will receive forgiveness. You may end up paying your loan off in full before you’re eligible for some forgiveness. Because your payment is based on your income, your payment changes when your income rises (or falls). Your income is the “x” factor, and we don’t know what will happen to it in the future. Under these plans, then, you may pay your loan off in full, or not, but the income-driven repayment plans are happy either way.

What else affects whether you will receive loan forgiveness? Well, it’s those familiar variables of loan balance and interest rate. Remember, interest accrues each day on whatever your principal balance is. The income-driven repayment plans do not change this fact. So, even though your payment isn’t related to how much interest is accruing, that interest still accrues and must still be paid before you can pay down the principal balance on your loan. Ultimately, because your payment is less than it would be under another plan and may even be less than the amount of interest that accrues on your loan, then you will pay down your principal balance more slowly and increase the likelihood of receiving loan forgiveness. This also means that your loan will cost you more over time. Does this mean that you shouldn’t choose an income-driven repayment plan? Of course not! But, I wouldn’t be doing my job if I didn’t explain that there was some sort of cost to receiving this benefit.

Disclaimers

To be a good bureaucrat, I need to give you a few disclaimers before I wrap this up:

  • If you receive loan forgiveness under an Income-Driven Repayment Plan, it may be considered taxable income by the Internal Revenue Service.
  • The Income-Based and Pay As You Earn Repayment plans both have an eligibility criteria that tests to see whether you “need” to enter the plan—this test checks how much federal student loan debt you have relative to your income.
  • There are loan-based eligibility criteria that I didn’t even mention, but know that these plans are only available for federal student loans—loans made under the Direct Loan and Federal Family Education Loan Programs, to be specific.
  • If you are married, how you file your federal income tax return matters; sometimes it matters a lot.

How to Apply

In closing, let me give you some actionable steps that you can take:

  • Use the Repayment Estimator to model your eligibility and payment amount for an income-driven repayment plan.
  • If you have still questions, call your loan servicer and discuss whether one of these plans is a good fit for you.
  • Apply online at StudentLoans.gov. Because this stuff is complicated, check the box that allows your loan servicer to put you on the income-driven repayment plan with the lowest monthly payment amount.

The English language was not marred through the use of acronyms in this blog post. Ian Foss has worked for the Department of Education since 2010, and, thanks to the Income-Based Repayment Plan, has been able to eat more than just ramen noodles since he finished school.

Student Loan Forgiveness (and Other Ways the Government Can Help You Repay Your Loans)

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Have you heard or read about student loan forgiveness? Are you wondering what it is or if it is really possible? Perhaps you already know a little about it and you want to find out if you qualify. Well, you’ve come to the right place. We’ll provide answers these questions and tell you where you can go to learn more.

What is loan forgiveness?

Loan forgiveness is the cancellation of all or some portion of your federal student loan balance. Yes, that’s right—cancellation of your loan balance. If your loan is forgiven, you are no longer required to repay that loan.

Is it really possible to have your student loans forgiven?

Yes. However, there are very specific eligibility requirements for each situation in which you can apply for loan forgiveness. If you think you may qualify, it’s definitely worth investigating.

How do I get my loans forgiven?

There are a number of situations under which you can have your federal student loan balance forgiven, and we’ve provided a few in this post. You will, however, want to research your options at StudentAid.gov/repay and contact your loan servicer for any questions you may have about student loan forgiveness.

A couple examples of situations in which your federal student loans may be forgiven include:

  • Teacher Loan Forgiveness: If you teach full-time for five complete and consecutive academic years in certain elementary and secondary schools and educational service agencies that serve low-income families, and meet other qualifications, you may be eligible for forgiveness of up to a combined total of $17,500 on certain federal student loans. For details about this program, see Teacher Loan Forgiveness.
  • Public Service Loan Forgiveness (PSLF): If you work full-time in certain public service jobs you may qualify for forgiveness of the remaining balance of your Direct Loans after you’ve made 120 qualifying payments on those loans—that’s usually about 10 years of payments. Serving in the Peace Corps or AmeriCorps is considered qualifying employment. To benefit from PSLF, you should enroll in a repayment plan that bases your monthly payment on your income. Learn more about income driven repayment plans. For loan repayment and borrower eligibility requirements, see Public Service Loan Forgiveness.

There are additional situations that allow you to apply for cancellation of your federal student loans. For example, if you are totally and permanently disabled, a member of the U.S. armed forces (serving in area of hostilities), a member of the Peace Corps, or a law enforcement or corrections officer, you may be eligible for cancellation of a portion of your federal student loan. Learn more about how you may qualify for loan forgiveness and contact your loan servicer with questions.

Are there other ways in which I can get help repaying my loans?

There are additional government programs that provide student loan repayment assistance for individuals who provide certain types of service. A couple examples include:

  • Military Service: In acknowledgement of your service to our country, there are special benefits and repayment options for your student loans available from the U.S. Department of Education and the U.S. Department of Defense. Learn about federal student loan benefits for members of the U.S. Armed Forces.
  • AmeriCorps: The Segal AmeriCorps Education Award is a post-service benefit received by participants who complete a term of national service in an approved AmeriCorps program—AmeriCorps VISTA, AmeriCorps NCCC, or AmeriCorps State and National. An AmeriCorps member serving in a full-time term of national service is required to complete the service within 12 months. Upon successful completion of the service, members are eligible to receive a Segal AmeriCorps Education Award which can be used to pay educational costs at eligible postsecondary institutions, as well as to repay qualified student loans. 

Remember, there are resources available to help you repay your loans. In addition to loan forgiveness and other benefit programs, you also have other options (including repayment plans that are based on your income) if you find yourself in a situation where you’re having trouble making your loan payments. Be sure to discuss your options with your loan servicer.

Lisa Rhodes is a writer at the Department of Education’s office of Federal Student Aid.

Where To Find Help With Your Federal Student Loans

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You received a federal student loan and now it’s time to repay it. If you’re like most student loan borrowers, you may find the repayment process a little overwhelming. But you have an important resource—your student loan servicer—to help you navigate the repayment process.

What is a loan servicer?

loan servicer handles the billing and other services on your federal student loans. The U.S. Department of Education (ED) assigns your loan to a servicer, and the servicer assists you with repayment and any questions you may have about your federal student loan.

What’s so important about my loan servicer?

There are several reasons why your loan servicer is important, including the fact that you’ll make your loan payments to your servicer.

Your servicer will help you:

How do I get contact information for my loan servicer?

To view information about all of your federal student loans including contact information for your loan servicer, log in to “My Federal Student Aid.” You’ll need your Federal Student Aid PIN, so make sure you have that handy. Once you’re logged in, select “Your Federal Student Loan Summary” to view your loan information. Note: If you have multiple federal student loans you may have more than one loan servicer, be sure to select each loan to see information specific to that loan.

Remember that your loan servicer will help you throughout the loan repayment process, so keep in touch with them, especially if your financial circumstances change.

Lisa Rhodes is a writer at the Department of Education’s office of Federal Student Aid.

Avoid These 4 Mistakes I Made With My Student Loans

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It’s been tough for me to come to terms with, but, unfortunately for me, I am not in college anymore. In fact, this spring marked three years since I graduated from college and went into repayment on my student loans. I know, not the most exciting thing in the world, but important. So while I don’t claim to be a student loan expert, I have learned a lot of lessons along the way, mostly through trial and error. In hopes that you won’t make the same mistakes I did, here are some things I wish I had known when I was graduating and getting ready to start repaying my student loans:

1. I should have kept track of what I was borrowing

Let’s be real. When you take out student loans to help pay for college, it’s easy to forget that the money will eventually have to be paid back … with interest. The money just doesn’t seem real when you’re in college, and I didn’t do a good job of keeping track of what I was borrowing and how it was building up. When it was time to start repaying my loans, I was quite overwhelmed. I had different types of loans and different interest rates. When I did eventually see my loan balance, I was pretty shocked.

You can avoid this problem. Had I known there was a super easy way to keep track of how much I’d borrowed in federal student loans, I would have been much better off. You can view all your federal student loans in one place by going to StudentAid.gov/login.

2. I should have made interest payments while I was still in school

If you’re anything like me, you probably consumed your fair share of instant noodles while trying to survive on a college student’s budget. Trust me, I get it. But one thing I really regret when it comes to my student loans was not paying interest while I was in school or during my grace period. Like I said, I was far from rich, but when I was in college, I did have a work-study job and waited tables on the side. I probably could have spared a few dollars each month to pay down some student loan interest. Remember, student loans are borrowed money that you have to repay with interest and more importantly, that interest may capitalize, or be added to your total balance. My advice: Even though you don’t have to, do yourself a favor and consider paying at least some of your student loan interest while you’re in school. It will save you money in the long run.

3. I should have kept my loan servicer in the loop

If you’re getting ready to graduate or have graduated recently and haven’t heard from your loan servicer, make sure you check that your loan servicer has up-to-date contact info for you. When I graduated and moved into my first big-girl apartment, I forgot to change my address with my loan servicer. I found out that all of my student loan correspondence was going to my mom’s address. I hadn’t even thought to update my loan servicer with my new contact information. Don’t make the same mistake I did. Keep your servicer informed of address, email, and phone changes.

4. I should have figured out what my monthly loan payments were going to be BEFORE I went into repayment

By the time my grace period was over, I had a decent idea of how much I had borrowed in total, but I had no idea what my monthly payments would be. I thought I was fine. I had started my new job and been paying rent and other bills for about six months. Then my grace period ended, and I got my first bill from my loan servicer. It was definitely an expense I hadn’t fully taken into account.

Don’t make the same mistake. Federal Student Aid has an awesome repayment estimator that allows you to pull in your federal student loan information and compare what your monthly payments would be under the different repayment plans that are offered. That way, you can choose the right repayment plan, know how much you can expect to pay monthly, and budget accordingly … unlike me.

I’ll be the first to admit that this whole process can be a little overwhelming, especially when you’re new at it. But just remember, your loan servicer is there to help you. If you need advice or have questions about your student loans, don’t hesitate to contact your loan servicer. Their assistance is FREE!

Nicole Callahan is a digital engagement strategist at the Department of Education’s office of Federal Student Aid.

6 Things You MUST Know About Repaying Your Student Loans

When it comes to repaying your federal student loans, there’s a lot to consider. By taking the time to understand the details of repayment, you can save yourself time and money.

REMEMBER: You never have to pay for help with your federal student loans. If you have any questions at all, contact your servicer. They provide FREE help.

This should help you get started.

When do I begin repaying my federal student loans?

You don’t have to begin repaying most federal student loans until after you leave college or drop below half-time enrollment. Many federal student loans will even have a grace period. The grace period gives you time to get financially settled and to select your repayment plan. Note that for most loans, interest will accrue during your grace period.

Your loan servicer or lender will provide you with a loan repayment schedule that states when your first payment is due, the number and frequency of payments, and the amount of each payment.

Whom do I pay?

You will make your federal student loan payments to your loan servicer*, not the U.S. Department of Education (ED) directly. ED uses several loan servicers to handle the billing and other services on federal student loans. Your loan servicer can work with you to choose a repayment plan and can answer any questions you have about your federal student loans. It’s important to maintain contact with your loan servicer and keep your servicer informed of any changes to your mailing address, e-mail, or phone number so they know where to send correspondence and how to contact you. How much do I need to pay?

Your bill will tell you how much to pay. Your payment (usually made monthly) depends on

  • the type of loan you received,
  • how much money you borrowed,
  • the interest rate on your loan, and
  • the repayment plan you choose.

You can use our repayment estimator to estimate your monthly payments under different repayment plans to determine which option is right for you. Just remember, if you would like to switch repayment plans, you must contact your loan servicer.

How do I make my student loan payments?

There are several ways you can submit payments to your loan servicer, including options to submit your payment online through your loan servicer’s website.

TIP: Your servicer may offer the option to have your payments automatically withdrawn from your bank account each month. You may want to consider this option so you don’t forget to make your payments.

What should I do if I’m having trouble making my student loan payments?

Contact your loan servicer as soon as possible. You may be able to change your repayment plan to one that will allow you to have a longer repayment period or to one that is based on your income. If switching repayment plans isn’t a good option for you, ask your loan servicer about your options for loan consolidation or a deferment or forbearance.

Note: Several third-party companies offer student loan assistance for a fee. Most of these services can be obtained for free from your loan servicer.

What happens if I don’t make my payments?

Not making your student loan payments can result in default, which negatively impacts your credit score. This may affect your ability to borrow for things like buying a car or purchasing a home. Your tax refunds may also be withheld and applied to your outstanding student loan debt. There is never a reason to default. The Department of Education offers several options to ensure that you can successfully manage your student loans. If you’re feeling overwhelmed or having difficulty making payments, contact your loan servicer for help.

*If you are repaying federal student loans made by a private lender (before July 1, 2010), you may be required to make payments directly to that lender.

Nicole Callahan is a digital engagement analyst at the Department of Education’s office of Federal Student Aid.

Helping Federal Student Loan Borrowers Manage Debt, Repay Loans

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We’ve been telling you that new data shows that a lower percentage of students are defaulting on federal loans.

That’s great news for students, taxpayers and our economy. But we know there is still more work to do. We want every student to leave college without feeling burdened by their debt.

In the past few years, we’ve undertaken several new initiatives to help borrowers manage their debt and repay their loans.

Our financial aid counseling tool is now available. There is also extensive financial aid information on StudentAid.gov, including details on flexible loan repayment plans, which allow borrowers to repay their loans based on their income.

Also, as you probably remember, back in June President Obama directed Secretary Duncan to allow all federal student loan borrowers to cap their monthly payment amounts at 10 percent of their monthly income. We’ve begun to put that directive into effect, with the goal of making the new plan available to borrowers next year.

And thanks to a wide variety of outreach efforts, more than 2.5 million Direct Loan borrowers are currently enrolled in an income-driven repayment plan.

We’ve also recently renegotiated terms of the federal student loan servicer contracts to help federal student loan borrowers better manage their debt. We’ve created additional incentives for companies that service federal student loans to improve counseling and outreach to ensure borrowers select the repayment plan best-suited to their financial circumstances, reduce payment delinquency, and help avoid default.

And we’re taking steps to address growing concerns about burdensome student loan debt by requiring career colleges to do a better job of preparing students for gainful employment.

It is important to remember there are options for those who have defaulted, as well. There are resources and several options for getting back on track at studentaid.gov.

If you need help repaying your federal student loans, you can also always contact your loan service provider to learn about repayment options.

Remember: there is no application fee to consolidate student loans. Do not pay for services that the U.S. Department of Education offers for free!

Dorothy Amatucci is a digital engagement strategist at the U.S. Department of Education.

4 Things You Should Do Before Repaying Your Student Loans

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One perk of having a federal student loan instead of a private student loan is that you are not required to start making payments right away. In fact, many federal student loans have a grace period*, or a set amount of time after you graduate, leave school, or drop below half-time enrollment before you must begin repaying your student loans. For most student loans, the grace period is 6 months but in some instances, the grace period could be longer. The grace period gives you time to get financially settled and to select your repayment plan.

For those of you who graduated in the spring, you’re probably nearing the end of your grace period. Your loan servicer, a company that works on behalf of the U.S. Department of Education to process and manage student loan payments, has probably contacted you letting you know how the repayment process will work and when your first payment is due.

Here are four things you should do now, before you make that first student loan payment:

  1. Get Organized

Start by tracking down all of your student loans. Did you know that you can view all your federal student loans in one place?

Just log into StudentAid.gov/login using your Federal Student Aid PIN to view your loan balances, interest rate, loan servicer contact information, and more.

Note: Don’t forget to check your personal records to see if you have private student loans.

  1. Contact Your Loan Servicer

Your loan servicer is the company that will be collecting payments on your federal student loan on behalf of the U.S. Department of Education. They are also there to provide support. Your loan servicer can help you choose a repayment plan, understand loan consolidation, and complete other tasks related to your federal student loan, so it’s important to maintain contact with your loan servicer. If your circumstances change at any time during your repayment period, your loan servicer will be able to help.

To find out who your loan servicer is, log in to StudentAid.gov. You may have more than one loan servicer, so it is important that you look at each loan individually.

  1. Estimate Your Monthly Payments Under Different Repayment Plans

Federal Student Aid has a great repayment calculator that allows you to compare our different repayment plan options side by side. Once you log in, the calculator pulls in information about your federal student loans, such as your loan balance and your interest rates, and allows you to estimate what your monthly payment would be under each of our different repayment plans. It also allows you to compare the total amount you will pay for your loan over time and can tell you the amount of loan forgiveness you’re expected to qualify for if you choose one of our income-driven repayment plans. Try it!

  1. Select the Repayment Plan That Works for You

One of the greatest benefits of federal student loans is the flexible repayment options. Take advantage of them! Although you may select or be assigned a repayment plan when you first begin repaying your student loan, you can change repayment plans at any time. There are options to tie your monthly payments to your income and even ways you can have your loans forgiven if you are a teacher or employed in certain public service jobs. Once you have determined which repayment plan is right for you, you must contact your loan servicer to officially change your repayment plan.

* Not all federal student loans have a grace period. Note that for many loans, interest will accrue during your grace period.

Nicole Callahan is a digital engagement analyst at the Department of Education’s office of Federal Student Aid.

How Can the Department of Education Increase Innovation, Transparency and Access to Data?

Despite the growing amount of information about higher education, many students and families still need access to clear, helpful resources to make informed decisions about going to – and paying for – college.  President Obama has called for innovation in college access, including by making sure all students have easy-to-understand information.

Now, the U.S. Department of Education needs your input on specific ways that we can increase innovation, transparency, and access to data.  In particular, we are interested in how APIs (application programming interfaces) could make our data and processes more open and efficient.

APIs are set of software instructions and standards that allow machine-to-machine communication.  APIs could allow developers from inside and outside government to build apps, widgets, websites, and other tools based on government information and services to let consumers access government-owned data and participate in government-run processes from more places on the Web, even beyond .gov websites. Well-designed government APIs help make data and processes freely available for use within agencies, between agencies, in the private sector, or by citizens, including students and families.

Read More

President Obama Announces New FAFSA Completion Initiative

Earlier today at Coral Reef High School in Miami, President Obama announced the launch of an exciting initiative to help ensure that more of America’s students take the first step towards college success: completing the Free Application for Federal Student Aid (FAFSA) form.

FAFSA GraphicThe FAFSA Completion Initiative helps states, districts and schools give students the support they need to complete the form which serves as the gateway to accessing financial aid for college, career school, or graduate school.

The FAFSA not only gives students access to the nearly $150 billion in grants, loans, and work-study funds that the federal government has available, but many states, schools, and private scholarships require you to submit the FAFSA before they will consider you for any financial aid they offer.

FAFSA Completion Initiative:

  • We will be partnering with states to enable them to provide to schools and districts limited, yet valuable information on student progress in completing the FAFSA  beginning in the 2014-15 school year.
  • Additionally, the Office of Federal Student Aid has updated the existing FAFSA completion tool with FAFSA completion numbers for the 2014 high school graduating class at over 25,000 high schools across the nation.
  • These new resources can help increase FAFSA completion rates, and by extension, promote college access and success.

Resources:

Cameron Brenchley is director of digital strategy at the U.S. Department of Education

5 Things To Do After Filing Your FAFSA

Congratulations! You finished filling out the 2014-2015 Free Application for Federal Student Aid (FAFSA)! Now what?

1. Look Out For Your Student Aid Report

FAFSA LOGOAfter you submit your FAFSA, you’ll get a Student Aid Report (SAR). Your SAR is a paper or electronic document that gives you some basic information about your eligibility for federal student aid as well as listing your answers to the questions on your FAFSA.

Any student with a Federal Student Aid PIN can view and print his or her SAR by logging in to www.fafsa.gov and clicking on the appropriate school year. This is also where you can check the status of your application if you have not received your SAR yet. Once you get your SAR, you should review it carefully to make sure it’s correct and complete. If you made a mistake, make sure you go in and correct or update your FAFSA.

2. Locate Your EFC

Found your SAR? Awesome! You may want to start by looking for your Expected Family Contribution (EFC). Your EFC can be found in the box at the top of the first page of your SAR, under your social security number.

Your EFC is a measure of your family’s financial strength and is calculated according to a formula established by law. Its formula considers your family’s taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) as well as your family size and the number of family members who will attend college during the year.

Schools use your EFC to determine your federal student aid eligibility and your financial aid award. However, it’s important to remember that your EFC is not the amount of money your family will have to pay for college nor is it the amount of federal student aid you will receive. It is a number used by your school to calculate how much financial aid you are eligible to receive. Contact your school’s financial aid office if you have any questions about how they calculate financial aid.

3. Make Corrections If You Need To

It’s important to make sure that everything on your FAFSA is correct and complete, as your school may ask you to verify some of the information.

Did you fill out FAFSA before your 2013 tax information was complete? Do you need to update any information? Did you find a mistake? Don’t worry! It’s easy to make corrections online at www.fafsa.gov. Log in and click “Make FAFSA Corrections.” You’ll need to enter your Federal Student Aid PIN to make any corrections. Corrections should be processed in 3-5 days and you should receive a revised SAR.

4. Review Your Financial Aid History Information

The last page of your SAR includes information about your financial aid history, specifically the loans you have taken out. It can be complicated and confusing to keep track of all of your loans and interest rates, but it is very important. Reviewing the financial aid history in your SAR will help you be aware of how much you are borrowing and how much you’ll owe later.

Remember: You can access your financial aid history information anytime by logging into www.nslds.ed.gov with your Federal Student Aid PIN.

5. Double-Check With Your Schools

Lastly, make sure that you double-check with the financial aid offices at the schools you applied to.  Sometimes schools need additional paperwork or have other deadlines. You never want to leave money on the table!

Rachel Connolly is freshman at The University of Michigan and virtual intern in ED’s office of Federal Student Aid.

Fill Out Your FAFSA, Get Help Paying for College

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First Lady Michelle Obama delivers remarks during a FAFSA (Free Application for Federal Student Aid) workshop at T.C. Williams High School in Alexandria, Va., Feb. 5, 2014. (Official White House Photo by Amanda Lucidon)

Cross-posted from the White House Blog. Read more about AmeriCorps member Margaret Montague who advises students at T.C. Williams.

On Wednesday, during her visit to T.C. Williams High School in Alexandria, Virginia, First Lady Michelle Obama asked students a good question: Why would the First Lady of the United States come to a school and spend time with students “just to watch you fill out a computer form?”

The answer is that filling out one particular form – the FAFSA, or Free Application for Federal Student Aid – is one of the most important things students and families can do in planning for college success.

“You don’t have to be the valedictorian. You don’t have to major in a certain subject,” the First Lady said in her remarks. “You don’t even have to be at the bottom of the income ladder to receive the money.”

There is no income cutoff to qualify for financial aid, and most federal student aid programs don’t take grades into consideration when you apply.

Education Secretary Arne Duncan, who joined the First Lady at the event, pointed out in his remarks that recent changes have made filling out the FAFSA much easier.

“For too long, applying for financial aid and securing the best aid package has been much more complicated, and much less transparent, than it should have been,” Secretary Duncan said.

Duncan and FLOTUS

First Lady Michelle Obama and Education Secretary Arne Duncan talk with students working on FAFSA (Free Application for Federal Student Aid) forms during a workshop at T.C. Williams High School in Alexandria, Va., Feb. 5, 2014. (Official White House Photo by Amanda Lucidon)

The FAFSA, Secretary Duncan said, now uses “skip logic” so students need only to answer questions relevant to them. Improvements to the web-based form – now used by 98 percent of applicants – makes the form faster and easier to fill out, less than 30 minutes on average.

Federal Student Aid, a part of the U.S. Department of Education, provides more than $150 billion in federal grants, loans, and work-study funds each year to more than 15 million students paying for college or career school.

“Almost everyone is eligible for some kind of financial aid, and all you have to do to access that aid is fill out this one little form,” said the First Lady. “It’s so simple.”

Talking with Students

First Lady Michelle Obama talks with students working on FAFSA (Free Application for Federal Student Aid) forms during a workshop at T.C. Williams High School in Alexandria, Va., Feb. 5, 2014. (Official White House Photo by Amanda Lucidon)

Later, Secretary Duncan and the First Lady visited with parents and students, discussing plans for college and how the FAFSA is a key step to achieving their post-secondary dreams. They also talked with school counselors about their work with students.

You can take action by filling out the FAFSA today.

In case you missed it:
To learn more about how the federal government can help you attend college, check out http://studentaid.gov/
Jennifer Simon is Senior Policy Advisor to the First Lady.