FAFSA For The MBA, Explained

With the average price of a full-time MBA program costing around $50,000 a year, financial assistance is a must for many.

But financial aid applications can be a headache filled with numerous forms and documents.

Abby Wolfe, of Business Insider, recently broke down the FAFSA process and how applicants can seamlessly apply.

FAFSA

FAFSA is the Free Application for Federal Student Aid. Essentially, if prospective applicants want to apply for federal aid, they need to fill out FAFSA.

“It’s approximately 100 questions long, with question topics ranging from your educational history to your income to any investments you might have,” Wolfe writes. “It’s a lot of information, but every single answer is factored into your Expected Family Contribution (EFC), which schools use to determine if you need aid and, if so, how much.”

WHAT YOU’RE ELIGIBLE FOR

Undergraduate and graduate aid varies a bit. According to Wolfe, MBAs typically have access to two types of federal aid: the Federal Stafford Loan and the Federal Grad PLUS.

“As these are loans, you must pay back the full amount you borrowed plus any interest that accrues over time,” Wolfe writes.

Additionally, Wolfe notes, federal loans for MBAs, unlike for undergraduates, are completely unsubsidized.

“That means that interest starts building up from the very day the money is distributed to you or the school you’re enrolled in,” Wolfe writes.

THE PROCESS

FAFSA can be a relatively straight forward process if you have everything handy.

Wolfe recommends applicants to gather the following prior to filling out FAFSA:

• All records of money earned (for example, tax forms, W-2s, W-9s)
• Bank and brokerage statements
• Details of any investments you may have
• List of schools you want to send FAFSA to

“While the process is pretty clear-cut, it can be tedious, as it requires a lot of little details,” Wolfe writes. “One good thing about filing independently is that you can completely skip Section 4, which is the parent and guardian information section. That’s about 40 questions you get to pass right on by!”

Sources: Business Insider, MBA Programs