Money

The FAFSA Stampede

By Lynn O'Shaughnessy

Updated on: April 23, 2009 / 2:35 PM EDT / MoneyWatch

Never thought you'd have to apply for college financial aid?
Lots of parents who assumed that they could cover the costs are now realizing they can't swing it in this train wreck of an economy.

I came to that obvious conclusion after looking at who is applying for federal financial aid this year. During the first three months of 2009, FAFSA filings jumped nearly 20%. (FAFSA is the acronym for the Free Application for Federal Student Aid, which is the annoying name attached to the federal aid form.)

This year, more than 6.5 million families have grappled with the six-page FAFSA document that can intimidate even those with advanced degrees. During the same period in 2008, the federal government had received 5.4 million forms.

No surprise here ....many states experiencing the greatest crush of new applicants have been slammed by foreclosures and this crummy recession.

Here are the states that have experienced the largest percentage surge in FAFSA filings:

Arizona 43%
Nevada 43%
Georgia 31%
Florida 31%
Alabama 29%
Michigan 26%
South Carolina 26%
Indiana 25%
Utah 24%
Washington DC 24%

California is clearly the epicenter of FAFSA filings. Californians have already completed more than 529,000 FAFSAs. In distant second place is New York which has generated less than 254,000 filings and Texas comes in third with roughly 194,000 forms in the system.

Even if you think you can handle the college tab, it's smart to complete the FAFSA form if your child will be attending college in the fall. Why? Stuff happens. A layoff might force you to tap into your college fund to pay for the mortgage and cases of Top Ramen.

Without a FAFSA form on file, you won't qualify for federal assistance.

It's better not to dawdle. This year's FAFSA deadline is June 30.