Why do people file their FAFSA without tax returns and W-2’s?
I understand that you can estimate now and correct later. But wouldn’t it be more productive for the government and the filer to wait until taxes are complete?
Originally posted 2010-04-16 13:03:45. Republished by Blog Post Promoter
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If FAFSA was only for federal grants and loans, people would wait because the federal government is committed to giving funds to anyone who qualifies. Unfortunately, state budgets and university funds are more finite. There is often a limit to how much can be spent on a program and the rules are, first come, first served. There have been countless times when I was researching a program, where I saw the message, “All funds have been allocated for this year. Check back next year.”
Yes you are right, it would be more productive to wait until taxes are complete but MONEY RUNS OUT! So that is why students estimate the tax section so they can get in line for the money. If they wait till April or later, all the other student who did their FAFSA back in January, Feb. and March will get all the money.