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According to the U.S. Bureau of Labor Statistics, a degree can help you earn up to 287% more over a lifetime than someone without one. But with college costing just over half a million dollars in lost income, loan interest, and other costs according to the National Center for Education Statistics, getting as much financial help as possible makes sense. The first place any family should start is with the Free Application for Federal Student Aid (FAFSA). Here are five myths about FAFSA and how filling it out can work in your favor.

Myth #1: FAFSA is too Complicated

This just isn’t true. It’s all online. The U.S. Department of Education has built the form to be easy to understand with step-by-step instructions. Make plans to set aside up to an hour to enter the information. To save time, gather all the required documentation before completing the form online.

Myth #2: We Make too Much Money

There are no income maximums to qualify for federal student aid. The actual requirements include U.S. citizenship, a valid Social Security number, enrollment or acceptance as a student at an accredited program or institution, and access to your (and your parent’s) federal tax return.

Myth #3: If I Don’t Get Grants, It’s Not Worth My Time

While Pell Grants do not need to be paid back (making them free money), filling out the FAFSA could make you eligible for federal student loans and work-study programs (on-campus, sometimes career-focused jobs that help pay for school). Federal student loans allow you to borrow money for school at a lower interest rate and avoid making payments until you leave school. Additionally, some loans do not accrue interest right away. 

Myth #4: You Can Apply at Any Time

Unfortunately, this is not true and could account for the fact that only 71% of families apply for federal student aid, according to the U.S. Department of Education. The application period opens on October 1 of each year for the beginning of the next school year. The earlier you apply, the more money will be available for your needs, including grants.

Myth #5: You Need Straight A’s to be Considered

Grades are important, but they’re not considered on the initial FAFSA application. That being stated, some schools do require specific grades (GPA) to maintain federal aid. 

Fill Out Your FAFSA

Whether you’re looking at next fall or need funding for the current school year, FAFSA is a great place to start. It could end up saving you thousands. Additionally, consider work-study programs, apply for as many scholarships as possible, and do what you can to work while in school. The extra income can help.

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The Stories from the Stacks blog is for anyone interested in advancing their financial life story. From financial challenges and advice to tips for a better relationship with money, each one is designed for you. Let us know what topics you’d like us to explore next!