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The process for creating a FSA ID is relatively simple, and both students and their parents will need to create their own individual FSA ID to take advantage of its benefits. Here’s how to do it:
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In order to fill out the FAFSA, parents and students must create an FSA ID. Inconsistent personal information caused problems for some individuals surrounding ID verification, including errors in names, addresses, and other information, which has led to delays in the processing of applications for financial assistance.
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The government also guaranteed a large portion of the loans, insuring private lenders against default. If a parent or student defaults, the private lender was reimbursed by the government for its losses. In contrast, under the Direct Loan program, the government lends directly to students using federal funds provided to it by the US Treasury.
An FSA ID is simple to set up and useful for managing your student aid online.