If you are looking for financial aid for college, you have to fill out the FAFSA (Free Application for Federal Student Aid). It’s one of the most effective ways to get financial aid from the government. Even if you aren’t qualified to receive a grant, the FAFSA will allow most students to take advantage of low-interest Stafford Loans.

Are you planning on filing a 2009-2010 FAFSA form, but haven’t gotten around to it yet? Don’t worry! A new change beginning January 24, 2010 will make the application much easier to fill out, causing thousands of college students across the country to breathe a huge sigh of relief.

If you’re applying for federal financial aid, make sure to the check the deadlines for submitting the FAFSA so you don’t miss out on an opportunity to get some scholarship money!

Starting January 24, students will have the option to import 2008 tax information directly from the IRS to their FAFSA form. This means no more digging through old tax returns to find the information that the government needs to figure out your financial need. If you are a dependent student and need your parents’ tax information, you need to fill out a separate student and parent tax information sheet.

However, this handy new opportunity isn’t for every student. Don’t use this option if you or your parent:

• Did not file a 2008 federal tax return
• Filed federal taxes as married, filing separately
• Were not married in 2008, but are now married
• Filed an amended 2008 tax return

When you start the process of filling out the FAFSA and get to the section that asks about income information, you will see the option of using IRS data if you click the button that says you filed a 2008 tax return. When you select this option, you need to use your FAFSA PIN to access the data. If you are requesting IRS information for your parent, the screen will prompt you to choose which parent.

Then, a notice will appear on your computer screen and direct you to the IRS website. Depending on whose information you are accessing (yours or your parent’s), you must enter the name exactly as it appears on the 2008 federal tax return. To authenticate the tax information on the screen, simply check a box at the bottom. When you select the ‘transfer now’ option, you will be returned to the FAFSA page, where your tax information will appear.

This may seem like a lot of steps, but it’s much easier than it sounds! The online FAFSA has many tools and help options to help you get through. If you’re concerned about the safety of your tax information, the Department of Education has promised that your IRS information is completely secure.

Remember that you can access the FAFSA online, which makes it easier and faster to complete. The FAFSA is quickly becoming simplified, so don’t miss this opportunity to cash in on some federal student aid!