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FAFSA, the Free Application for Federal Student Aid, opened on Oct. 1 for the 2022-2023 academic year. Yet, each year, many high school graduates miss out on financial aid by neglecting to complete forms like the FAFSA. Perhaps you believe you don’t qualify, or that it’s not worth your time. As reported by CNBC, this confusion is one of the reasons students forgo their portion of $150 billion in federal aid annually.
Here’s why it’s probably a good idea for you or a college-bound student in your life to complete the FAFSA—regardless of the situation.
The FAFSA does more than just provide loans
The FAFSA is designed to assess how much financial aid a student is eligible for, including both need-based and non-need-based assistance. It’s beneficial to complete it to uncover your eligibility for various financial support, including federal, state, school-based aid, and merit-based scholarships.
The initial figures are not final
Students have the option to request a better financial aid package. If your financial situation changes due to factors like unexpected medical expenses or job loss, you may qualify for more aid. According to a report from Sallie Mae:
When financial situations shifted during the pandemic, 29% of families who received an aid offer from their school asked for a larger offer. The majority (71%) of those appeals were successful. The additional assistance included: Increased grant amounts (52%); Increased school scholarships (47%); Increased federal loan amounts (14%); Increased work-study (13%).
At the same time, you are not required to accept all (or any) of the aid offered. In fact, Rebecca Safier, a student loan counselor for Student Loan Hero, recommends that students “try to minimize borrowing as much as possible to avoid accumulating overwhelming debt after graduation.” Given that student loans are intimidating, this advice is crucial.
No official income limit for applying
Don’t assume you’re ineligible based on your household income. Even if you don’t qualify for all types of aid, there is no income limit to apply for federal loans. While income thresholds exist for need-based assistance like work-study or scholarships such as the Pell Grant, it’s crucial to understand the criteria to qualify for—and maintain—eligibility (such as no GPA requirements for incoming students).
It’s free and (supposedly) quick
According to the U.S. Department of Education’s federal student aid website, the FAFSA form (which is free!) takes the average student less than an hour to complete. Even if you’re unsure where—or if—you’ll attend school, it’s worth looking into applying for federal aid right away. The process can seem overwhelming, but with FAFSA, the early bird gets the worm.
You can fill out the free form online or use the myStudentAid app for iOS or Android devices.
