The FAFSA online transfer of data helped me. I couldn't file a FAFSA early, because my school told me that I wasn't eligible for financial aid until my grade average was higher. So, I signed up and paid for summer courses without any aid. Then, my grades were enough to bring up my average, so I applied in late August.
If I had to get all the info myself, plus register for fall (and work out a payment arrangement) and work as well, it would have been too much to handle. But all I needed was my FAFSA pin and my drivers license and the whole thing took 15 minutes.
I think if you're going to take the federal money, then you have to give up something in return, like your privacy. But it's not going to matter as long as you don't have anything to hide. If you do, you shouldn't be applying for government funds in the first place.