Each year, more than four million ...

Each year, more than four million observers receive some form of financial aid. To finish your share, you must first file the federal government's clear Application for Federal Student Aid, better known as the FAFSA. It determines eligibility for all federal aid programs, from Pell Grants to bookish man loans. It determines eligibility for principally state and collegiate based aid programs. And, it unruffled indirectly determines eligibility for a merit based aid, since many place of educations reserve their own (limited) scholarships for observers who don't qualify, for need-based funds

in what way much you're eligible for will hang on the financial and personal information you provide forward the FAFSA. Federal processors evaluate the data, determine your family's ability to pay, and then number you how much you and your family should contribute toward guild (or your Expected Family Contribution).

The form can be intimidating, if it were not that if you take it step-by-step it's worth the effort filling it disclosed And don't forget, it's independent to file so you have nothing to lose

GETTING STARTED

You can pick up a FAFSA in your guidance office on mid-November (or online at www.fafsa.ed.gov), however, you can't file it until January 1 of the year in which you plan to start guild (that's January 1, 2004, for those who trustful longing to start college in September, 2004) You should, however, file as quickly after that date as possible since a great deal of financial aid is delivered forward a first-come, first-served basis. currency is awarded until it calmnesss out; late fliers get nothing.

Unfortunately, many observers miss out on financial aid opportunities because they fail to qualified the filing deadlines. The best financial aid awards (those heavy forward grants and lighter on loans) are generally given to the earliest applicants.

GATHER YOUR PAPERS

To make unfailing you're one of the early birds, work with your parents to start collecting the necessary financial records through the whole extent of the winter holidays. To obtain organized, you might try putting your paperwork into brace folders:

FOLDER 1: INCOME AND cost INFORMATION

All income and cost data comes from the prior year (2003 for the 2004/2005 award year).

* Taxable income for the pair parents and student, including wages, pensions, capital gains, interest, dividends, annuities, unemployment compensation, alimony received, disrupture collected, and business income.

* Non-taxable income for the couple parents and students including workers' compensation, welfare benefits (excluding victuals stamps), housing and food allowances, child support received, untaxed Social Security benefits, untaxed income from pensions and annuities, veterans' non-education benefits, tax-exempt interest income, deductible payments made to a retirement plan (such as an IRA or Keogh) and earned income credit.

* costs such as U.S. income taxes paid and child support paid.

FOLDER 2: ASSET INFORMATION

* The value of cash, savings, and checking accounts for parents and student

* snare worth of all the parents' and student's investments (except for retirement plans), including stocks, chainss CDs, money market funds, mutual stocks commodities, trust funds, Education IRAs, state-based body savings plans (except prepaid tuition plans) and real estate holdings (rental quality and second homes). You ne not include the equity in your family's primary residence.

* The snare worth of any family business and/or farm (excluding farms that are principal residences).

You must report the unadulterated worth of all these assets as of the date you sign the form, in such a manner before you record any totals, be certain your family pays off all its bills and pays down any consumer due like credit card balances.

BE ACCURATE

In completing the FAFSA, be as accurate as you can. Mistakes will cause your application to be returned--for instance, giving monthly amounts instead of yearly amounts, writing in the margins, checking the ovals (rather than filling them in).

If a question or couple seems confusing, call the federal learner aid hot line at 1-800-4FED-AID, or ask a guidance counselor or financial aid administrator. Many associations now have toll free numbers for exactly that drift If a question still suffers troublesome, explain your problem in a alphabetic character to the school's financial aid administrator. Note: You're les likely to make mistakes if you apply online. FAFSA forward the Web includes worksheets, online help, detailed instructions, and internal edits that help obstruct errors and reduce rejections.

formerly you've gathered all your financial data, the FAFSA is fair straightforward. Answer each question unles the FAFSA specifically narrates you it's a step you can skip. Let's review each sec6on:

1 scholar NAME, RANK, AND SERIAL NUMBER

Questions 1 to 17 shroud the basics: The student's name, e-mail address, permanent address, Social Security number, date of birth, permanent phone number, driver's license number, citizenship status, and marital status.

2 scholar BAOKGROUND

Questions 18 to 31 deal for the most part with:

* The student's educational plans.