The Free Application for Federal Student Aid, more commonly known as FAFSA, is the gateway to most types of college financial aid. This application asks questions about the student and family's financial situation to assess financial needs. The federal government, state governments, and individual schools use the information to determine your financial aid award.
Am I Eligible For Financial Aid?
Most students are eligible for at least some financial aid. However, you must have completed high school or the equivalent and enrolled in a degree-seeking program. You also must be a U.S. citizen, U.S. national, or eligible non-citizen with a Social Security Number. In addition, you must not be in default on previous federal student loans, and you must not have received any drug convictions while receiving federal student aid in the past.
Some types of financial aid, like grants and subsidized student loans, are based on financial need. Therefore, your eligibility for these types of assistance will depend on the answers you provide in the FAFSA. However, other kinds of financial aid, like unsubsidized student loans and parent loans, are available to all eligible applicants, regardless of financial need.
What Types of Aid Are Available?
- Grants are the most coveted type of student aid because they do not require repayment. The most common type of grant is the Federal Pell Grant. These grants of up to $7,395 per year for 2024-25 go to students that demonstrate significant financial need.
- Student loans are available to all applicants, regardless of financial need. The most common program is the William D. Ford Federal Direct Loan Program, which offers student loans and parent loans directly from the federal government. Students who have demonstrated significant financial need may receive subsidized Direct Loans or Perkins Loans. The federal government will pay the interest on these loans while enrolled in school.
- Federal work-study awards allow students to work part-time, on or off-campus, during the school year to help pay for some of their education costs.
How and When do I Apply?
You must complete the FAFSA every school year to qualify for aid. The application for the 2024-25 school year opens in December 2023, a change from previous years when it opened in October. The federal deadline is June 30, 2025, but many states and schools set earlier deadlines. Filing your FAFSA as soon as possible increases your chances of receiving aid since some funds are distributed on a first-come, first-served basis.
To complete your FAFSA, you’ll need:
- Your 2023 tax return and W-2 statements.
- Current bank statements and investment records.
- Your parents’ financial information if you are a dependent student.
You can submit your FAFSA online at FAFSA.gov, where you can also check the status of your application and make any necessary corrections.
What Happens After I Apply?
Once you submit your FAFSA, it enters the processing stage within a few days. Each school you list on the FAFSA receives your financial information and evaluates your eligibility for aid. Shortly after submission, you’ll receive a Student Aid Report (SAR) by email, usually within 3 to 5 days.
The SAR includes your Student Aid Index (SAI), which replaces the former Expected Family Contribution (EFC). Schools use the SAI to calculate your financial aid package, which may include grants, loans, and work-study opportunities. If your FAFSA contains errors, the SAR will provide instructions to correct them.
After reviewing your SAR, colleges will send you a financial aid award letter outlining the types and amounts of aid available to you. You can compare award letters from multiple schools to determine which offers the best financial aid package based on your needs.
If your financial situation changes after filing the FAFSA, such as a loss of income, you can contact your school's financial aid office to request a reconsideration of your aid package.