Your higher education is so very important. It is also very important to make the right financial aid decisions regarding that higher education. Below, I have given you some brief information about financial aid and higher education.

You should apply for financial aid every year; even if you think you do not qualify. There are many factors affecting eligibility for financial aid. For example, a student who did not qualify one year might become eligible during the next year when a brother or sister enrolls in college. A change in family financial circumstances might affect your eligibility for student financial aid.

To apply for student financial aid from the federal government, including the Pell Grant, Perkins Loan, Stafford Loan and work-study, you will need to submit the Free Application for Federal Student Aid (FAFSA). There is no charge for submitting this form. All state and many school student assistance programs also require the FAFSA.

Some private colleges and universities will require one or more supplemental forms to obtain information not included on the FAFSA. They may have their own forms or they may ask you to complete the College Board’s CSS PROFILE form.

Watch the Five-Minute FAFSA Video for a quick introduction to the FAFSA.

Before you begin, you should review important information about the deadlines (including the strange business about not submitting the FAFSA form before January 1) and gather together all the documents you will need to complete the form. The IRS Form/FAFSA Map will show you which lines of your income tax returns correspond to each line of the FAFSA.

Then read our sections relating to the FAFSA and/or CSS PROFILE forms. You should also read the section on Help Completing the FAFSA and our list of Common Errors on Financial Aid Applications. You will find the Title IV School Code Database helpful, since it contains the magic numbers you will need to identify the schools to which you are applying. You can also review what happens after you submit the FAFSA, in the section about the Student Aid Report (SAR) and Expected Family Contribution (EFC).

You will later receive financial aid award letters from the colleges, listing the amount and types of financial aid in your financial aid package. These award letters can sometimes be difficult to decode.

If you are wondering whether you count as a dependent or independent student for financial aid purposes, see FinAid’s dependency status form.

If you want to get an early estimate of what the government thinks you can afford to pay for your education, try FinAid’s Financial Aid Estimation Form. It lets you play what-if games, to give you an idea how changes in income and assets affect the expected family contribution. They also have tips on how to legally maximize your eligibility for need-based financial aid by careful financial planning. See also information about the new small business exclusion.

Veterans should read the section concerning Veterans and the FAFSA for information about the student aid treatment of veteran’s education benefits and the definition of a veteran for student aid purposes.