Personal Finance Coach: How to Create a Federal Student Aid ID

As many as 40 million workers in the U.S. including many of our clients will be impacted by the plans the Biden administration announced yesterday to make sweeping changes to the “broken” student loan system. Proposed changes include an easier path to loan forgiveness in exchange for public service and limits on interest. Still unclear is the fate of the federal student loan payment moratorium, scheduled to end August 31. Either way, there are steps borrowers can take now to prepare for any eventuality, steps TrustPlus Personal Finance Coaches discuss with our clients to determine their own best paths to financial empowerment.

For TrustPlus clients who are beginning to explore federal student loan options, whether they’re a student, parent, or borrower, their first step is to create a Federal Student Aid (FSA) ID account which is necessary to complete federal student aid tasks. Here’s a step-by-step guide from TrustPlus Personal Finance Coach and accredited financial counselor (AFC®) Ashley Denae Hannah on how to create an FSA ID (The following transcript has been lightly edited):

Welcome to our tutorial on how to create an FSA ID.

My name is Ashley Denae Hannah. I’m a Financial Coach and accredited financial counselor (AFC®) at Neighborhood Trust Financial Partners (TrustPlus). In this video, I will cover four areas.

1) One, what is an FSA ID?

2) What do you use an FSA ID for?

3) What do you need to create one?

4) Where do you go to get one?

Let’s begin.

What is an FSA ID?

An FSA ID is a username and password combination that you use to log into the U.S. Department of Education’s online systems. The FSA ID is your legal signature and shouldn’t be created or used by anyone other than you, not even your parent, your child, a school official or loan company representative.

What do you use your FSA ID for?

You use your FSA ID every year. You fill out the Free Application for Federal Student Aid known as FAFSA, and for the lifetime of your federal student loans, for things like applying for public student loan forgiveness, applying to change your repayment plan and to get information on defaulted, student loans.

What do you need to create your FSA ID?

You will need your social security number, your full name, date of birth, and an email address or mobile phone number that you will use to make your FSA ID.

Be sure to create a memorable username and password, as well as to complete the challenge questions and answers, so that you can retrieve your account information, in case you ever forget it.

Where do I get an FSA ID?

When you have everything you need, and you’re ready to go, go to studentaid.gov and click create account. If you have any questions or you would like any assistance, please reach out to your Financial Coach and we will be happy to help. Thanks for watching.