RESTON, Va., Jan. 15, 2008—Sallie Mae, the nation’s leading saving- and paying-for-college company, advises high school seniors to fill out the Free Application for Federal Student Aid (FAFSA) now. The FAFSA is a student’s starting point for applying to most financial assistance programs. Students need to apply before their state’s deadline to ensure they do not miss out on state grants — free money — to help pay for college.

Many state deadlines are fast approaching, and aid may be awarded on a first-come-first-served basis. Students should note the following state aid deadlines and complete their FAFSA in advance of these dates:

Last year, approximately $150 billion in college financial aid was awarded. Students can get money for college in the form of grants, scholarships, work-study programs and student loans. A recent study suggests nearly 2 million students missed out on free money to pay for college simply because they did not apply.

Students and their parents can complete the FAFSA application on the Web in as little as an hour or two. To begin, students and parents should go online to www.fafsa.ed.gov and request a PIN from the U.S. Department of Education. With a PIN, students and parents can apply and “sign” the FAFSA online, check the status of the submitted FAFSA, and make corrections. Gathering relevant documents and information — including Social Security number or alien registration card, driver's license, latest federal income tax return, W-2 forms, bank statements and investment information — will reduce the time it takes to complete the application.

Sallie Mae’s award-winning CollegeAnswer.com Web site has free tools and information to simplify the application process and to help families navigate the financial aid process. Resources include sample FAFSAs in both English and Spanish, a list of state financial aid deadlines and a three-minute FAFSA podcast which can be downloaded to an MP3 player or computer. CollegeAnswer.com also contains the largest free online scholarship database, containing more than 2.8 million scholarships worth over $16 billion. Visit CollegeAnswer.com/fafsa for more information.

Sallie Mae advises students and parents to use the following 1-2-3 approach when saving for college via tax-advantaged 529 savings plans (such as www.Upromise.com) and using interest-free tuition payment plans (such as www.TuitionPay.com) are not enough to cover the full cost of a college or university degree:

1. Find free money first. Apply for financial aid that does not have to be repaid, such as scholarships and grants, by completing the FAFSA.
2. Consider federal student loans. Consider borrowing under the federally subsidized student loan programs, which provide consumer-friendly loan rates, benefits, and repayment options for students and parents. Parents and graduate/professional students can borrow up to the cost of attendance under the Parent PLUS and Graduate PLUS programs, respectively.
3. Use private student loans to fill any remaining funding gap.

For more information contact:
Erica Eriksdotter (703) 984-5628