| AwardYear: 1997-1998 Edition: PostSecondary Part: 2 - - The application process for financial aid SectionNumber: SectionTitle: Introduction PageNumbers: 19 Historically, standards for application processing and need analysis were developed in the 1950s by the financial aid community and independent servicers. As the federal share of need-based aid increased over the years, need analysis became a part of the law, which was later amended to ensure that prospective students could apply for federal aid without paying a fee. A student must fill out the Free Application for Federal Student Aid (FAFSA) to be considered for federal student aid (such as Federal Pell Grants, Federal Direct Loans, and Federal Family Education Loans). This application collects financial and other information used to calculate the EFC (Expected Family Contribution) that is a key factor in determining the student's eligibility for aid. Currently, the U.S. Department of Education contracts for two different kinds of processing services. FAFSA Processors input students' FAFSA data and transmit that data to the Central Processing System (CPS). The CPS uses this information to calculate the EFC and to produce an output document (or record) reporting that EFC. The student will receive a Student Aid Report (SAR) or SAR Information Acknowledgement from the CPS within four weeks of submitting the FAFSA. Schools can get the student's output record electronically, in the form of an Institutional Student Information Record (ISIR). Only schools listed in Part H of a student's FAFSA will automatically receive an ISIR. Any other school must obtain that student's ISIR through either the Applicant Data Service (on tape or cartridge) or through the Electronic Data Exchange. The application processing cycle lasts 18 months. For the 1997-98 award year, application processing begins in January 1997, and applications for that year will be accepted until June 30, 1998. However, students who are applying for the summer or fall 1997 sessions should be advised to submit their applications as soon as possible but not before January 1, 1997. |