FAFSA is Free Money for College

The new year is the time get working on FAFSA applications. By the way, FAFSA stands for "Free Application for Federal Student Aid" and it is an application process that determines whether or not students are eligible for free money for college from the government.

All awards are made on a financial-need basis, that means students are selected based on exactly how much money they need when income and expected costs are considered.

This money can come in two forms: grants and subsidized student loans. Grants don't ever have to be paid back, and are typically given in small lump sums annually or per semester. These provide up to a few thousand dollars a year, so they won't pay for all of a college tuition bill unless you're keeping costs low by attending a local community college or other economically friendly institution.

Subsidized student loans will eventually have to be paid back, but they offer many advantages over privately offered student loans. Since they're backed by the government, they're even a lot easier to guarantee than private loans during the credit crunch. And the obvious advantage is that they offer lower interest rates and more generous repayment terms. Usually, the government will pay for interest so long as you're enrolled in college, and during this time you might not even have to make monthly payments. As long as you stay in school, these types of loans are literally free money.

So don't waste any time! Register for the FAFSA at http://www.fafsa.ed.gov/ today! If you don't have a PIN, make sure to register immediately as it may take up to a few days to process. This year, there's even an option to file the FAFSA by phone - so you have no excuses!