Apply Early for Financial Aid

The cost of attending college is increasing, but so is the amount of money available for financial aid. To get as much as possible, don't make the mistake of waiting too long to apply.

To qualify for most financial aid, you must complete the Free Application for Federal Student Aid (FAFSA). You can do this online or the old-fashioned way, with paper and pen, but timing is critical.

Here's the catch-22: the information you submit on the FAFSA is based on your tax information for the year ending on December 31st, but many people don't file their taxes until April. By then all the financial aid may already be awarded to other students.

How do you get around this problem? Use estimates for your tax information, and file the FAFSA as close to January 1st as possible. You can file corrections later if necessary.

Students and parents should sit down together and plan how they'll accomplish the task of completing the FAFSA, since parents' information has to be included. Divorce complicates the matter because exchange of sensitive financial information between the ex-spouses is sometimes necessary. Allow plenty of time to work these issues out.

The FAFSA has to be submitted for each year of college in order to continue to be eligible for aid. After the first year, you may be able to file a renewal FAFSA, which may save you some time.

You can download a pre-application FAFSA form to print and fill out ahead of time to make your online filing easier. Then go to the FAFSA Web site to complete and file your form online.