U.S. Secretary of Education Arne Duncan announced a new streamlined Free Application for Federal Student Aid (FAFSA) just in time for students and families to complete the 2010-11 application. Improvements include a much more user-friendly online format and a large reduction in the number of questions asked. A total of 22 questions are eliminated, representing a 28% reduction in questions, and 17 screens are eliminated, a reduction of 65% of web screens.
 
These updates are in addition to those announced in August 2009. The full list of the most recent improvements can be found in the Simplification Update form from the Department of Education. Here are a few highlights:

*Student and parent sections are clearly identified with side tabs.
*Status indicators guide applicants through web modules, such as demographics, basic eligibility, and dependency status.
 *The display of the help text and instructions, which takes up much of the web screen on the 2009-10 form, is enhanced by the use of help     text that disappears when you are no longer in a particular section.
*Students with low incomes will no longer be asked for asset information, which is not used to determine their aid eligibility.
*Questions regarding additional financial information and untaxed income are presented in a simplified keyword "check box" format on one page.
*Later this month, students applying for aid for the spring semester using the 2009-2010 FAFSA will be able to retrieve and import their tax data from the IRS. In the summer of 2010, students applying for aid in the 2010-11 year will also be able to apply for aid using their tax data. In this process, a link to the IRS will display in the income section of the FAFSA with a message that students may access the IRS site to retrieve income information to complete the application.
 
Dr. Jill Biden blogged about the new FAFSA on the White House Blog. Be sure to check out the NACAC Admitted Blog post on the FAFSA updates, which also provides links to helpful financial aid information.
 
2010-11 FAFSA Available
The final version of the 2010-2011 Free Application for Federal Student Aid (FAFSA) is now available in English and Spanish. The PDF documents, among the FAFSA filing optionsavailable online, can be downloaded by schools and students to complete for submission. Corresponding FAFSA on the Web Worksheets are also available to assist students and families in completing the FAFSA.
 
English
2010-11 FAFSA
2010-11 FAFSA on the Web Worksheet
 
Spanish
2010-11 FAFSA
2010-11 FAFSA on the Web Worksheet

1.    Don’t assume high-priced schools are outside your budget.

In a down economy, there’s a great temptation to assume pricey universities are out of the question. Many of these colleges have endowments and though they’ve been hit too, family’s economic situations are changing and allowing families to qualify for more need-based aid. Students should still apply to the schools that seem to best fit their needs, regardless of cost. Fewer than 25% of families pay the “sticker price” listed for tuition.

2.    Take AP’s and go to a Junior College.

Community college isn’t just for Thursday nights on NBC! Transferring AP and junior college credits is an easy way to earn a Bachelor’s degree for less money and less time. Universities will typically accept a maximum of 60 outside units, which is about 2 years worth of classes. Take advantage!

3.    Go to the web!

If travel costs are keeping you from visiting schools, reach out to the wealth of information online giving students information about applying to college. Universitydrive.com has great videos if you don’t have time to read another book. Collegeboard.com is a comprehensive resource to help you search for schools, sign up for SAT’s and get financial aid information.

4.    Find an affordable personal consultant.

Research has shown students, on average, are only receiving 8 minutes of college guidance each year. Many schools are overcrowded leaving students without personalized guidance. There are number of affordable private consultants ready to help walk you through the process, check out Full Ride Inc, Accept Edge and Top Test Prep.

5.    Don’t be afraid of student loans.

While it’s unwise to take out $140,000 in students loans for undergrad, $20,000-$30,000 is reasonable and often the difference in attending college or not. College loan interest can be written off on taxes once a student has a job, gives them a credit history and teaches students about personal finance at an age when they need to learn it.

6.    College is still the best investment.

In spite of the increased costs, a college education is still the single most important investment a family can make in their child's future. Beyond earning potential, college is a four-year experience where students are exposed to diverse thought, critical thinking, and learning how to network to prepare for a successful career.