Why is financial literacy important to FAFSA?

The application for FAFSA (Free Application for Federal Student Aid) is officially accessible on October 1st for the 2022-2023 academic year. FAFSA is a form that current and prospective students use to determine their eligibility for financial aid. 18 million students file for FAFSA annually. Federal aid is disbursed in two forms: federal student loans (being the most popular) and federal grants. Aid is based on the student’s family income and assets. Tuition costs continually rise but there are many different resources of financial aid to facilitate paying for your tuition. There are many websites that provide an in-depth guide on how to complete the FAFSA. Understandably, a major concern for many college bound students and their families is tuition. Determining how to pay for college is among the first financial decisions that students make. Young adults will be exposed to the concept of loans, budgeting, taxes, and basic components of finance. Filing a FAFSA is an introductory glimpse to financial independence.  Setting financial goals can provide a context that allows us to better understand financial literacy. First generation college attendees ultimately rely on themselves to navigate how to file scholarship, and loan eligibility. This ties back to the concept of vitality of generational financial literacy. It is important to learn about financial aid literacy, especially when there are many misconceptions about how at FAFSA. Many students are left on their own to search for their parents income tax and vital documents when filling out FAFSA. It can be a complex task for families who lack a proficient level of financial literacy. There is a disparity between students of financial knowledge and those who have constraints , financial knowledge. Students learning about financial documents for the first time  and their lack of financial understanding may result in financial misconceptions. The supplemental information is vast and not always easily accessible. To prepare for better financial success it is important to have adequate tools and knowledge. FFG’s has plentiful resources that  provide financial e-learning, saving and paying for college, tuition plans, managing student loans and more. Use FFG’s resources to prioritize college financial literacy to help students create a lasting understanding of financial planning. Resources on financial aid, and literacy provide necessary knowledge and skills to promote lifelong financial health.