A student's step-by-step guide through the financial aid process:

Step #1 - Apply for a PIN at www.pin.ed.gov. Having a PIN will enable you to apply for Federal aid online, "sign" documents electronically, access your Student Aid Report (SAR) online and make corrections to your FAFSA through the web.  

Step #2 - Fill out the FAFSA form (as soon after January 1 as possible) and send it to the federal processor. The FAFSA application enables the federal government to come up with your EFC (Estimated Family Contribution). The EFC is the same regardless of where you apply to school. (Go to www.fafsa.ed.gov to fill out the application online.)

Step #3 - Approximately one month after filing the FAFSA, you will receive a Student Aid Report (SAR). The SAR allows you to correct any mistakes, update any changes in financial circumstances or add new or additional colleges where you would like your information to be sent.

Step #4 - The EFC information from your FAFSA form will be sent to the financial aid office at the college(s) that you indicated on your FAFSA form. Each college then takes that amount and subtracts the EFC from their cost of education. That figure is your family's demonstrated financial need for that particular college. Financial need will be different for each college you apply to because each college's cost of education is different. Note you may have to fill out supplemental forms in addition to the FAFSA at each of your prospective colleges in order to be considered for financial aid.

Step #5 - Each college's financial aid office then determines what aid it has available to help meet your demonstrated financial need. They will put together a financial aid package or award letter for you. The aid may come in the form of federal or state grants, work study, private endowments or scholarships, federal student loans and so on.

Step #6 - Your financial aid package may or may not cover your total financial need. If financial need is not entirely met by what a college offers in their financial aid package, this unmet need is called a "gap." This means that resources must be found in order to meet the full cost of education. In many cases this will mean student and parent loans.

Step #7 - Once you've received your financial aid package and know what financial need has been met and what amount if any remains, you will have some decisions to make. First, you must decide if you want to accept the financial aid package as it is offered. Next, if you are planning to take out student loans, you will need to choose a student loan provider. Keep in mind, educational loan options can vary and not all lenders are the same.