What is the FAFSA?
The Free Application for Federal Student Aid, better known as the FAFSA, helps potential and current college students get scholarships, grants, work-study programs and federal student loans. There are no income limits to apply.
Many state and private colleges use the FAFSA to determine your financial aid eligibility, and you must submit a FAFSA every year to receive federal financial aid.
Here is our complete FAFSA guide, including how to apply.
Types of aid available through FAFSA
While there are no overall FAFSA income limits, your family’s specific financial situation determines the size of the aid package you can expect to receive.
But even if you’re worried your parents make too much for need-based aid, it’s still worth submitting the FAFSA to see if you can get non-need-based aid.
Below are the types of federal financial aid you can obtain via the FAFSA:
The federal Pell Grant offers free money for college. The amount you receive depends on your financial need and your school’s cost of attendance. Pell Grant amounts change annually — the maximum federal Pell Grant award for the 2023/24 school year is $7,395.Pell Grants are available only to undergraduates, and you can only receive them for 12 semesters. Check out our guides on the Pell Grant and specific Pell Grant requirements to learn more.
Schools participating in work-study programs provide government-funded part-time jobs for qualifying students with financial need. These programs are available for undergraduate and graduate students alike. In some cases, your assigned work will be related to your course of study or could involve community service.You can expect to earn at least the federal minimum wage with a work-study position. However, certain jobs are paid more, depending on the skills needed and the school’s available funds.
A federal subsidized loan can help close the gap if grants don’t cover your expenses. The government pays the interest on the Direct subsidized loan while you attend school — as long as you enroll at least half-time — and during your student loan grace period. However, subsidized loans are only available to undergraduates.Congress determines the interest rate on all student loans for the upcoming school year. For July 1, 2022 to June 30, 2023, the interest rate for a Direct loan (subsidized or unsubsidized) is 4.99%, with a one-time fee of 1.057% of the loan amount.
This financial aid program is not based entirely on economic need. You can receive an unsubsidized loan for any amount up to the year’s maximum student loan amount or your school’s cost of attendance (whichever is less), regardless of your year in school.Unfortunately, the government won’t pay any interest on unsubsidized loans. The interest will accrue and capitalize upon graduation unless you make in-school interest payments. The fees and rates for undergrad students are the same as with subsidized loans, as mentioned in the previous section.
Graduate or professional students can take out a grad PLUS loan, while parents of undergraduate students can help fund their child’s education with a parent PLUS loan.The interest is unsubsidized, so interest will begin to accrue as soon as you get the funds. Interest rates on PLUS loans are also higher than for Direct subsidized and unsubsidized loans — the rate is 7.54% for July 1, 2022, to June 30, 2023.
The maximum amount you can borrow in PLUS loans is based on the school’s cost of attendance, minus other financial aid you receive. Parents can also consider private parent loans if they need additional funds, while many lenders also have private student loans for grad students.
The TEACH Grant assists students who are completing coursework related to teaching. The maximum award benefit is typically $4,000 a year. However, any 2022-23 TEACH Grant disbursed between Oct. 1, 2022 and Oct. 1, 2023 is reduced by 5.7% ($228), for a total of $3,772.To qualify for this award, students must sign a TEACH Grant Agreement to Serve in which you agree to teach:
- In a high-need field
- At an elementary school, secondary school or educational service agency that serves students from low-income families
- For at least four academic years within eight years after completing the course of study for which you received the grant
Note that if you don’t fulfill the requirements, your grant becomes a loan you must repay.
Iraq and Afghanistan Service Grants are available to students with a parent or guardian who died during military service in Iraq or Afghanistan after 9/11. The award equals the Pell Grant, meaning eligible students can receive up to $6,895.However, for any grant first disbursed between Oct. 1, 2022 and Oct. 1, 2023, the maximum award amount is reduced by 5.7% ($393.01), for a total of $6,501.99.
The FAFSA is a gateway not just for federal student aid, but also for funding from your state government. Not all state grants require a FAFSA, but many do.Be sure to have a look at our state-by-state grant guide to these awards in order to maximize your grant funds and hopefully minimize the amount of student loans you’ll need.
How much can you receive in Direct subsidized and unsubsidized loans?Ultimately, your school determines your federal financial aid package based on your Expected Family Contribution (soon to be renamed Student Aid Index) and the cost of attendance.
Additionally, the Department of Education sets the following aggregate federal student loan limits:
- Dependent undergraduate students: $31,000 in subsidized and unsubsidized loans (no more than $23,000 in subsidized loans).
- Independent undergraduate students: $57,500 in subsidized and unsubsidized loans (no more than $23,000 in subsidized loans). Dependent undergraduates whose parents are denied a parent PLUS loan also qualify for this maximum.
- Graduate and professional students: $138,500 in unsubsidized loans. This limit includes all federal loans received for undergraduate studies.
FAFSA vs. CSS Profile
Although the FAFSA is the main financial aid application form for most types of public funding, another form worth completing is the CSS Profile. Administered by the College Board, the CSS Profile helps colleges and private scholarship programs calculate a student’s level of financial need.
Here are the key differences and similarities between the FAFSA and CSS Profile.
| FAFSA | CSS Profile | |
|---|---|---|
| Cost | Free for everyone | $25 for the initial application, then $16 for each additional school year. Fees are waived if your family makes less than $100,000 per year. |
| Application renewal | Annually | Annually |
| Schools accepted | Any school that grants federal financial aid | Over 400 colleges, universities and private scholarship programs |
| Type of aid | Federal financial aid (sometimes state and institutional aid) | Need-based, non-federal financial aid |
| Administrator | The U.S. Department of Education | The College Board |
| How to apply | Online or by mail | Online |
Keep in mind that your college may require you to complete both the FAFSA and the CSS Profile. In addition, many schools have their own scholarship or aid applications. Contact your school’s financial aid department to ensure you complete everything on time — the sooner you get started, the better.
How to Complete the FAFSA
Head over to the Department of Education website to start your FAFSA application. You’ll need the following to complete the process:
- Your Social Security number or Alien Registration number (USCIS number)
- Financial account statements
- Federal income tax returns, W-2s and other records of money earned
You can save time by uploading your and your parents’ tax documents via the IRS Data Retrieval Tool in the FAFSA form.
While you don’t need a Federal Student Aid (FSA) ID to fill out the FAFSA, creating one is a good idea. Having an FSA ID makes it easier to find your application once started, allowing you to quickly pull up your student aid reports and track your student loan servicers.
Note that you can use the Federal Student Aid Estimator to estimate your potential financial aid before starting to see where you stand.
Special cases affecting federal financial aid eligibility
| Criminal conviction | Incarceration would restrict access to most federal financial aid |
| Disability | In addition to typical federal grants, you can also apply for medical-based financial aid |
| Non-citizen | If you have a Permanent Resident card (also known as a “green card”), you could still qualify for aid as a FAFSA-eligible non-citizen |
| Parent killed in military action | Beyond a Pell Grant, you could also qualify for an Iraq and Afghanistan Service Grant |
What is the deadline for the FAFSA?FAFSA applications open annually on Oct. 1 for the following school year. Although the official FAFSA deadline is June 30 of the following year, it’s best to apply early since money is generally distributed on a first-come, first-served basis.
The sooner you apply, the better your chances of getting the help you need for school. Some schools also impose their own deadlines for financial aid, so mark your calendar to ensure you don’t miss an important deadline.
What to do once you’ve submitted the FAFSA
After submitting your FAFSA, you’ll receive a Student Aid Report outlining your application and eligibility, usually within a few days to three weeks. If you see any errors on your Student Aid Report, you’ll need to update your FAFSA online.
The FAFSA offers tools to simplify the filing process and prevent errors. If you’ve filed a FAFSA in the past, you can automatically input the previous FAFSA information into your current application. Plus, the IRS Data Retrieval Tool can automatically fill your FAFSA with relevant tax information.
Your college will review your FAFSA and other enrollment materials. The financial aid award letter often comes around the same time as an admissions letter, though this can vary by school. The award letter outlines your aid package, including federal student aid, institutional aid and loans.
Follow the instructions in the letter to accept and claim your financial aid. You must respond by the start of the term to avoid losing your financial aid award.
Appealing your aid award
If you feel you weren’t given enough aid based on your financial situation, you have the option to appeal your financial aid award.
If you go this route, your first step should be to call your school’s financial aid office and ask about the specifics of its appeal process. You’ll likely need to write a letter explaining the reasons behind your request for an appeal, such as a change in employment or financial circumstances. Include supporting documentation, such as bank statements or copies of your award letters from other schools.
Appeals are considered on a case-by-case situation, and of course, there’s no guarantee you’ll receive more aid. For more details, see our guide to appealing your financial aid award letter.
Additional ways to pay for college
If your educational costs exceed the federal limits, you can consider private student loans to help cover remaining expenses. They often come with flexible interest rates and repayment terms.
However, be sure to do your research before you sign the dotted line. Private student loans don’t offer the same government protections as federal student loans, such as income-driven repayment plans and student loan forgiveness programs.
Here are some other ways to pay for college:
- Get a high-paying college job
- Apply for full-ride scholarships
- Consider attending a “no loans” college to reduce your overall student loan debt (or start with community college first)
- Ask friends and family for monetary gifts through your 529 college savings plan
- Look at other options in our list of strategies to pay for college