You may obtain paper FAFSAs from their high school guidance offices, local libraries, or from the financial aid offices at the schools you are interested in attending. Once you and your parents have completed the paper version FAFSA you must mail it to a FAFSA processor. FAFSA processors are responsible for key entering the FAFSA data into a computer system and electronically transmitting the data to a Central Processing System, or CPS.

Rather than using a paper FAFSA, you may apply for federal financial assistance electronically using one of three methods. Most schools can key in and transmit your paper FAFSA using a system known as Electronic Data Exchange (EDE). If you have an IBM-compatible computer and a modem (or access to one), you can use a software application called FAFSA Express to transmit your application directly to the Department of Education. Finally, you may submit your FAFSA over the World Wide Web FAFSA Express is a software application for IBM-compatible computers using one of the Department of Education's electronic applications: Electronic Data Exchange (EDE), FAFSA Express, or FAFSA on the Web.

Most schools now participate in the Department of Education's Electronic Data Exchange, known as EDE. With EDE, you can submit a paper FAFSA to the school, and the school can enter and transmit the application data electronically to the Central Processing System. You may also be able to enter the FAFSA information yourself using EDE at the school. Check with the schools you are planning to attend to see if they participate in EDE.

FAFSA Express is a stand-alone software application tool that allows you to apply directly to the Department of Education for Title IV assistance. The software for FAFSA Express can be loaded and transmitted from any IBM-compatible computer that has a modem. The screens in FAFSA Express resemble a paper FAFSA and include on-line help and instructions. FAFSA Express was developed for use by high school counselors, in libraries, Educational Opportunity Centers, and college financial aid offices. In addition, if you have the required hardware (PC and modem), you may install copies of FAFSA Express on their own PCS and apply for financial aid from home.

FAFSA on the Web is an Internet application developed by the Department of Education that you may use to apply for financial aid. Using the U.S. (Domestic) version of Netscape Navigator 3.0 or higher, you may complete and submit their FAFSA information directly to the CPS.

Processing the FAFSA
When the CPS receives applicant data, it runs your (and your parents') demographic, income, and asset information through a federally mandated formula to calculate an official Expected Family Contribution (EFC). Next, some of the information that you provided on the FAFSA is compared to information stored in various federal databases. The results of these matches are printed on a Student Aid Report (SAR), which will be mailed to you. The EFC is also printed on the SAR. The CPS also forwards applicant information and analysis directly to each school listed on the FAFSA. Institutions use this information, usually in conjunction with other documents that you submit to the school, to determine eligibility for federal aid, and often institutional and state aid as well.

When you receive the Student Aid Report from the CPS, review the information reported on the document for accuracy. Because the FAFSA is often completed before tax forms have been filed, you may have reported estimated information on the FAFSA. When the SAR is received, if you have more accurate information about your family's income or there are corrections that need to be made, you must correct the information on the SAR, sign it, and have at least one parent sign it (if required), and return it to the address listed on the SAR. The school to which you are applying may be able to make these SAR corrections electronically, so before sending the SAR to a FAFSA processor for corrections, check with the school to see if they can perform the changes.

When corrections are received, the FAFSA processor will key enter the changes, transmit the changes to the CPS who will recalculate the official EFC, and mail you a corrected SAR. Once again, you should review the information on the SAR for accuracy.

In most cases, unless the school instructs you otherwise, the SAR does not need to be submitted to the school you wish to attend. This is because schools that participate in the Department of Education's Electronic Data Exchange (EDE) will receive the student's information electronically, so these schools do not need the student's SAR (in fact, schools that receive ISIRs from the CPS cannot require a student to submit his or her SAR). You should, however, should keep a copy of the SAR for your records.

Unless you indicated "no" on question #102 of the FAFSA, your FAFSA information will also be transmitted by the CPS to the state agency so that you may be considered for any state-sponsored financial aid programs. In some states there may be a separate application for state funds. Check with your school or state agency to find out if a separate application is required, and when the application deadline is.

At this point, it is important to note the distinction between "need" and "need analysis." Need has already been defined as the difference between the cost of attendance and the Expected Family Contribution (EFC). In other words, your "need" represents the amount of money you lack, and thus need in addition to the Expected Family Contribution (EFC) to afford the costs associated with attending a particular postsecondary school. Need is determined by the school.

Need analysis, on the other hand, focuses on determining the amount your family can reasonably be expected to contribute towards your educational expenses for a given year, and is the mechanism used to calculate an Expected Family Contribution (EFC).

In general, the need analysis formula considers several financial factors when determining how much your family can reasonably be expected to contribute toward educational expenses. The two most influential factors are a family's income and asset equity.