FAFSA stands for The Free Application for Federal Student Aid. The FAFSA is a form that students in, or applying to, colleges (either undergraduate or graduate programs) complete to determine federal student financial aid eligibility. For example, one would fill out the FAFSA form in order to apply for Stafford loans, PLUS loans, Pell grants and federal work-study programs. The form, which can be filled out every year, is also commonly used by individual states or schools to award non-federal financial aid.
The form itself is a series of questions related to the student’s finances and also his or her family’s finances. This information is used to determine the student’s Expected Family Contribution. The government maintains the expectation that students will have some from of monetary contribution from their family; therefore family finances are required on the form as well. There are no questions related to ethnicity, religion or race.
We encourage all students to complete the form. However, whether or not you fill out the FAFSA or qualify for federal financial aid, you always have the option of a peer-to-peer loan and to finance your education with People Capital’s P2P Lending Platform.