Before your prospective college student tackles a single application essay, you should hit the books. Your subject: FAFSA, short for Free Application for Federal Student Aid.

You’ll have to fill one out to be eligible for any student aid, says Dennis Chavez, Director of Financial Aid Services at Binghamton University. You’ll also need to complete the FAFSA before applying for student loans, work-study programs, and fellowships.

The FAFSA

• is required for federal and state need-based aid,

• is used by almost every college and university in determining how to award both state and private scholarship money, and

• it’s even used in awarding most private scholarships that are not related directly to a school, such as those offered by special-interest organizations.

Some high-income parents think they shouldn’t bother with FAFSA because they won’t qualify for aid. Not true, says James Kennedy, University Director of Financial Aid at Indiana University.

"Even parents with high incomes can qualify for non-need based loans, such as Parent Loan for Undergraduate Student (PLUS), or Unsubsidized Stafford Loans," Kennedy says. (PLUS loans don’t require the FAFSA but instead are based on credit reports, using a loan application with the institution making the loan.)

For details on cutoffs for loan eligibility, check out FinAid.org or the U.S. Department of Education’s Student Aid Web site.

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