A Step-by-Step Guide to FAFSA® New Layer
Tap the arrow for a quick overview of this section.
Most students know that financial aid can be an important part of paying for college. You start the process by getting an FSA ID. Then you fill out the FAFSA® form online.
You can access the FAFSA form at studentaid.gov/h/apply-for-aid/fafsa.
Be sure to list the colleges where you plan to apply.
FAFSA details, including the role of parents and guardians, are available at studentaid.gov or understandingfafsa.org.
Reminder: Do this as early as possible in your senior year of high school.
2 of 14 The Department of Education receives your submission.
They review your FAFSA to decide how much money you qualify for in financial aid.
3 of 14
The government then sends you an estimate of how much financial aid you may be eligible for.
This estimate is known as the Student Aid Index (SAI).
They also send the same information to the colleges you listed on your FAFSA application.
4 of 14
Then you wait…. 5 of 14
Around March or April, you receive notices from the colleges that accepted you. Congratulations!
How much your tuition, room and meal plan will cost.
How much money they are offering you*
How much you can borrow in loans from the Federal Government
They also send you a financial aid letter that tells you:
* Read these offers carefully. Some of the money will be scholarships or grants; but some will be loans you will have to pay back.
6 of 14 In early May (usually), you choose which school you'll be attending and tell them of your decision.
You also tell them you agree to take out loans to cover the costs of anything you can't pay directly.
In addition, to prove your commitment to go to this college, you send them a non-refundable deposit.
7 of 14
Your selected college reviews your information and tells the government how much you'll be borrowing in Federal Student Loans.
8 of 14
This amount is just for your first year, and is only for Federal Student Loans – not any other form of financial aid. 9 of 14 The Department of Education updates your information on studentaid.ed.gov.
In addition, they prepare the following for you:
A tutorial that explains what your student loan obligations are
A promissory note*
* This online contract includes the details of your loan and your legally-binding promise to pay it back.
10 of 14
You then go to the studentaid.gov website and sign the promissory note.
11 of 14
After receiving your signed promissory note, the Federal Government sends the funds to your college, in your name.
12 of 14
Your college takes out the funds from your loan that have been designated to help cover your costs.
This includes your tuition, course fees and – unless you live off campus – your room and meal plan.
Note: Even though your agreement is for a full year of Federal Student Loans, your college will take half those funds at the start of your first semester and the other half at the start of your second semester. That way, you don’t pay interest on the entire amount for a school year.
Subsidized and unsubsidized loans: In most cases, interest will start to be charged as soon as your loan is used. However, if you qualified for a low-income subsidized loan, the government will pay your interest during the time you’re in college.
13 of 14
Once your college has taken its portion out of your loan, you can use any remaining money to pay for other valid expenses listed on your promissory note.
14 of 14
Then, next year, you go through the same process all over again.
(So don’t forget to fill out your FAFSA® each year.)
Return to the beginning of the FAFSA Process
A Step-by-Step Guide to FAFSA® New Layer
Tap the arrow for a quick overview of this section.
Most students know that financial aid can be an important part of paying for college. You start the process by getting an FSA ID. Then you fill out the FAFSA® form online.
You can access the FAFSA form at studentaid.gov/h/apply-for-aid/fafsa.
Be sure to list the colleges where you plan to apply.
FAFSA details, including the role of parents and guardians, are available at studentaid.gov or understandingfafsa.org.
Reminder: Do this as early as possible in your senior year of high school.
2 of 14 The Department of Education receives your submission.
They review your FAFSA to decide how much money you qualify for in financial aid.
3 of 14
The government then sends you an estimate of how much financial aid you may be eligible for.
This estimate is known as the Student Aid Index (SAI).
They also send the same information to the colleges you listed on your FAFSA application.
4 of 14
Then you wait…. 5 of 14
Around March or April, you receive notices from the colleges that accepted you. Congratulations!
How much your tuition, room and meal plan will cost.
How much money they are offering you*
How much you can borrow in loans from the Federal Government
They also send you a financial aid letter that tells you:
* Read these offers carefully. Some of the money will be scholarships or grants; but some will be loans you will have to pay back.
6 of 14 In early May (usually), you choose which school you'll be attending and tell them of your decision.
You also tell them you agree to take out loans to cover the costs of anything you can't pay directly.
In addition, to prove your commitment to go to this college, you send them a non-refundable deposit.
7 of 14
Your selected college reviews your information and tells the government how much you'll be borrowing in Federal Student Loans.
8 of 14
This amount is just for your first year, and is only for Federal Student Loans – not any other form of financial aid. 9 of 14 The Department of Education updates your information on studentaid.ed.gov.
In addition, they prepare the following for you:
A tutorial that explains what your student loan obligations are
A promissory note*
* This online contract includes the details of your loan and your legally-binding promise to pay it back.
10 of 14
You then go to the studentaid.gov website and sign the promissory note.
11 of 14
After receiving your signed promissory note, the Federal Government sends the funds to your college, in your name.
12 of 14
Your college takes out the funds from your loan that have been designated to help cover your costs.
This includes your tuition, course fees and – unless you live off campus – your room and meal plan.
Note: Even though your agreement is for a full year of Federal Student Loans, your college will take half those funds at the start of your first semester and the other half at the start of your second semester. That way, you don’t pay interest on the entire amount for a school year.
Subsidized and unsubsidized loans: In most cases, interest will start to be charged as soon as your loan is used. However, if you qualified for a low-income subsidized loan, the government will pay your interest during the time you’re in college.
13 of 14
Once your college has taken its portion out of your loan, you can use any remaining money to pay for other valid expenses listed on your promissory note.
14 of 14
Then, next year, you go through the same process all over again.
(So don’t forget to fill out your FAFSA® each year.)
Return to the beginning of the FAFSA Process
