Applying for college and financial aid is a family project in many ways. While it is the student who ultimately is responsible for submitting items, parents play an important role. For instance, financial aid applications require information, signatures, and action from both the student and the parent, and knowing who needs to do what can help prevent unnecessary delays. The good news is that you don’t have to figure it all out on your own. The key is understanding everyone’s role before the deadlines begin. Here is a look at who does what during financial aid season for parents and students.
The Student’s Role
Even though parents provide much of the financial information for dependent students, FAFSA is the student’s application. This means students need to be actively involved in the process. Students should make sure they can access their own FSA ID and keep their login information secure. They’ll need it to access their Federal Student Aid account and complete required steps throughout the financial aid process.
Students should also pay attention to their college portals and email accounts. Colleges may send important requests, deadlines, and financial aid notifications directly to the student. It should be the students responsibility to consistently check all their accounts for important information related to financial aid.
Students should also understand what they’re accepting. When financial aid offers arrive, don’t simply click “accept” without reviewing what is included. Students should know the difference between grants, scholarships, work-study, and loans. They should also understand which types of aid have to be repaid.
The Parent’s Role
Parents have an important, active role, too, particularly when it comes to providing financial information. For dependent students, parents may need to provide information for the FAFSA, and the CSS Profile if required.
This is why organizing tax returns, W-2s, investment information, and other financial records ahead of time is so helpful. Having everything gathered in one place makes the application process much easier when it’s time to complete the forms.
Parents will also need their own FSA ID, meaning they need to also create an account, that is separate from their students, and log in to check items and sign documents.
I also think parents have another important role in all this, which is to help students learn to manage the process themselves. College is a transition toward independence, and financial aid is a great opportunity for students to begin taking ownership of important financial decisions.
What Should Parents and Students Do Together?
Have Conversations Early and Often
While there is a lot to do in the financial aid process, several of the items are best handled as a team. One thing to do early on is to have a financial aid conversation together. Discuss key points about your family’s financial situation. Talk about what’s realistic, what money is or can be saved, how parents plan to help or contribute, what is expected of the student in terms of helping contribute, working, etc., and who is responsible for loan repayment if you take them. Understanding these factors early will help families make more informed decisions about financial aid.
This conversation can also help when students are making their college list. While your student might initially sit down and create their list, I suggest families review the list together once they’ve had an honest financial conversation detailing the items listed above. This will help students determine which schools make sense financially, and which ones might not be a good fit.
Tracking Deadlines
Both students and parents should also keep track of financial aid deadlines and know which colleges require additional forms beyond the FAFSA. This is something that students should take charge on and parents oversee to ensure their student is staying on track and no deadlines are being missed.
Review Offers
When it comes time to review financial aid offers, do it together. Look at the total cost of attendance, grants and scholarships, work-study, and loans. Don’t focus only on the amount of “aid” being offered. What matters most is understanding how much your family will actually need to pay and then determining how it will get paid.
Don’t Let One Person Manage Everything
One of the biggest mistakes families can make is allowing one person to take complete control of the financial aid process. Sometimes parents step in trying to make sure everything is done correctly and on time, as there are a lot of moving pieces. The problem is that students need to know how the process works. They shouldn’t be disconnected from the process or uninformed about the financial side of things.
Encourage your student to log into their own accounts, read communications from colleges, understand their financial aid offer, and ask questions when something doesn’t make sense. Parents can provide guidance and support without taking over every step.
Financial Aid Is a Family Process
The best financial aid experience happens when parents and students work together. Parents bring experience, financial information, and guidance. Students bring responsibility for their own accounts, applications, and ultimately their college decisions. Neither should manage everything alone.
Start the conversations early, keep documents organized, know your deadlines, and make sure both parent and student understand what’s happening.
More about Jodi and College Financial Aid Advisors
Jodi is a FAFSA financial advisor who helps with the financial aid process to help families of college students maximize their financial aid. From completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options, Jodi is a fantastic resource when it comes to student financial aid. Schedule a 15 Minute Power Chat to learn more about finding ways to pay for college.