How Long Does It Take To Process FAFSA Money?

For students seeking financial assistance to pay for college, the Free Application for Federal Student Aid (FAFSA) is a vital resource. After completing and submitting the FAFSA, students often wonder how long it takes to process their application and receive their financial aid.

While there are multiple steps involved, understanding the timeline for processing FAFSA money can help students plan for their academic year. Below, we will break down the FAFSA process, explore how long each step takes, and explain what factors might affect the timeline.

How Quickly Can I Get FAFSA Money?

It typically takes three to five days to process your FAFSA application if submitted online, and seven to 10 days if submitted by mail. After processing, it can take anywhere from two to six weeks for schools to send out financial aid award letters.

Once you've accepted your aid, the funds are disbursed to your school about 10 days before the start of each term. Any remaining money, after tuition and fees are covered, is refunded to you for other expenses. Timing can vary depending on when you submit your FAFSA and your school's disbursement schedule.

Below, we'll break down each step so you understand what to expect from the time you fill out your FAFSA to the money being disbursed.

Step 1: Submitting the FAFSA

The FAFSA can be submitted online at the official FAFSA website, and students are encouraged to complete it as early as possible. The form becomes available each year on October 1, and submitting early can maximize your chances of receiving aid, as some grants and state funds are awarded on a first-come, first-served basis.

How Long Does It Take To Fill Out the FAFSA?

On average, filling out the FAFSA online takes about 30 minutes if you have all the necessary information, such as Social Security numbers, tax returns, and other financial documents. This step is relatively quick, but ensure that you carefully review your answers to avoid errors that could delay processing.

When Will You Get Confirmation?

Once you submit your FAFSA, you should receive a confirmation email immediately, acknowledging that your application has been received. You will also be able to track the status of your FAFSA online.

Step 2: Processing the FAFSA Application

Once the FAFSA is submitted, it goes through a review process by the U.S. Department of Education to ensure that all the required information has been provided and that the data is accurate.

How Long Does It Take To Process?

FAFSA processing times vary depending on how the form is submitted. If you submit your FAFSA online, it typically takes three to five days for the application to be processed. If you mail a paper FAFSA form, it generally takes about seven to 10 days for processing.

Keep in mind that it may take additional time for your school to review the processed FAFSA and create a financial aid package.

What Is a Student Aid Report (SAR)?

After processing your FAFSA, you will receive a Student Aid Report (SAR), which contains a summary of your FAFSA information.

The SAR is usually available within three to five days after you submit the FAFSA online or two to three weeks if you submit it by mail. You will receive the SAR via email or mail, depending on how you submitted your application.

It is essential to review your SAR carefully. If any information is incorrect or missing, you may need to make corrections, which could delay the process. Schools will also use the information in your SAR to determine your financial aid package, so accuracy is crucial.

Step 3: Receiving Your Financial Aid Award Letter

Once your FAFSA has been processed, the financial aid office at each school you listed on your application will receive your information. Schools use this data to create your financial aid package, which may include grants, loans, and work-study opportunities.

When Will You Receive Your Award Letter?

The timeline for receiving your financial aid award letter varies depending on the school. Some schools start sending award letters as early as March or April for students who plan to start in the fall, while others may take longer, especially if you submit your FAFSA later in the cycle.

Typically, you should expect to receive your award letter anywhere from two to six weeks after your FAFSA is processed. If you applied early, you may receive it sooner, but if you applied closer to the school's deadline, it could take longer.

Schools often prioritize early applicants, so submitting your FAFSA as soon as possible is recommended.

What Is in the Award Letter?

Your award letter will detail the types and amounts of financial aid you are eligible for. This may include:

• grants: Federal Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), or state grants
• federal loans: subsidized and unsubsidized loans
• work-study: opportunities to work part-time while attending school

After reviewing your award letter, you will need to accept or decline the aid offered. You can usually do this through your school's online portal or by contacting the financial aid office directly.

Step 4: Disbursement of FAFSA Money

Once you accept your financial aid package, the final step is receiving the actual funds. The disbursement process involves sending the aid money to your school, which then applies it to your tuition and fees.

When Will You Receive FAFSA Money?

The timeline for disbursement depends on your school's financial aid schedule. Most schools disburse federal financial aid at the beginning of each term (fall, spring, or summer), typically about 10 days before classes start.

Your school will use the funds to cover your tuition, fees, and other charges. If there is any money left over after these costs are covered, the school will issue a refund to you, which you can use for other educational expenses such as books, supplies, or housing.

How Will You Receive the Money?

Any remaining funds will usually be sent to you by direct deposit or a check, depending on your school's policy. It is important to note that the disbursement of federal loans may be split into multiple payments throughout the academic year, so you may not receive the full amount all at once.

Factors That Could Delay FAFSA Processing

While the FAFSA process is generally straightforward, several factors can cause delays.

• Errors on the FAFSA form: Inaccurate or incomplete information can result in processing delays, so double-check all your details before submitting.
• Verification: Some students are randomly selected for verification, which means you will need to provide additional documentation to prove the accuracy of your FAFSA information. This can add time to the processing.
• Late submissions: Submitting your FAFSA later in the application cycle or after deadlines can delay both your award letter and the disbursement of funds.