Is FAFSA.com Charging Students for What They Could Get For Free?

Do you know what FAFSA stands for? Free Application for Federal Student Aid.

The first word, "free," is pretty important. It lets students and their parents know that applying for aid won't cost them any money, and might just gain them something in the form of grants and loans. Most people these days apply for federal student aid online, at FAFSA.gov.

But some families, like Darlene Lee's, have typed in ".com" instead of ".gov". A pretty easy mistake, right? But FAFSA.com has a catch - it isn't free. In fact, when Lee got to the end of her son's application, she was asked to pay $79.99 for FAFSA.com's service of filing her application and checking it for errors.

Honolulu's Star Advertiser has drawn attention to this three-letter conundrum. Darlene Lee was later charged by the company an additional $67.99 for a year renewal, a charge which was later dropped when she protested.

"It's a free service, so why should they be making money off of people, especially young kids trying to get an education?" asked Lee.

FAFSA.com, run by Student Financial Aid Services, says they're not charging to submit the form, but charging for the expertise they provide to families.

"Just like income taxes, federal law provides students two options for applying for aid – either to prepare the application themselves on the Department of Education’s Web site or get professional help from a FAFSA preparation service," said Mary Fallon, the company's spokesperson.

But college advisers say that "expertise" isn't necessary - the FAFSA isn't difficult to fill out, and the government has a 1-800 number for parents with questions. And the company's website address - www.FAFSA.com - is so similar to the free government run site that it's easy for parents to be taken advantage of.

Fallon says the company does let students know that they can get free help directly from the Department of Education and also runs a program where they provide expert advice for low-income students. She said the company's customers are generally very satisfied with their services.

"The company has an A+ Better Business Bureau rating as well," wrote Fallon, in response to our petition. "The company offers a seven-day refund policy for those dissatisfied with the service and remove the personal information of anyone who has started to use our online service but changed their mind."

When you enter FAFSA.com, you're greeted with an urgent message - "Student Aid Alert - File IMMEDIATELY to avoid losing aid," which takes you to the site's costly FAFSA service. Although some families may want the help that the site provides, who knows how many more just don't realize they're on the wrong website until it's time to fork over the cash?

Student Financial Aid Services Inc. is a member of the National Association of Financial Aid Adminstrators. But their actions may violate the association's ethical code, which emphasizes that members, "committed to removing financial barriers for those who wish to pursue postsecondary learning," and "educate students and families through quality consumer information."

We want FAFSA.com to make it more clear to parents and students that they're paying for something, and for the National Association of Financial Aid Administrators to enforce their code of ethics on their members. After all, so many students are having trouble paying for college these days. Companies shouldn't be profiting off of their struggle to give themselves a future. Sign our petition - Tell FAFSA.com To Stop Bilking Needy Students Looking for Financial Aid Help

Photo credit: Sushi Ina