The Free Application for Federal Student Aid is a form completed by current and prospective college students in the United States to determine their eligibility for student financial aid. The FAFSA should not be confused with the CSS Profile, which is also required by some colleges. The CSS is a fee-based product of the College Board and is usually used by the colleges to distribute their own institutional funding rather than federal or state funding.
Eligibility
Many students are eligible for some form of financial aid. Students who are not eligible for need-based aid may still be eligible for an unsubsidized Stafford Loan regardless of income or circumstances. In addition to establishing financial need, students must meet the following criteria in order to be eligible for aid:
be registered with the Selective Service System, if male and between the ages of 18 and 25, if required to do so;
have maintained a Satisfactory Academic Progress ;
be a U.S. citizen, a U.S. national, or an eligible non-citizen;
have signed the certification statement stating that: 1) they are not in default on a federal student loan and do not owe money on a federal student grant and 2) federal student aid will only be used for educational purposes;
Students who are military veterans and active duty service members may apply for financial aid by filing a FAFSA even if they also apply for education and housing benefits offered by the Post-9/11 G.I. Bill and its accompanying Yellow Ribbon program. The amount of military aid a student receives for a college education does not defer eligibility or reduce the amount of student aid that student could receive from the four federal grant programs – Pell, SMART, FSEOG, and – and many of the state student aid programs. Student Aid and Fiscal Responsibility Act of 2010 changed the criteria for suspension of eligibility for drug-related offenses. Previously, students could lose eligibility for either the possession or sale of a controlled substance during the period of enrollment. SAFRA dropped the penalties for possession of a controlled substance but retained the penalties for sale of a controlled substance. SAFRA increases the suspension to two years for a first offense and indefinite for a second offense.
Preparation and filing options
Beginning with the 2017–2018 academic year, the FAFSA is made available to the public on October 1 of the previous year. The 2016–2017 academic year was the final time the FAFSA was made available on January 1. The US Department of Education made the FAFSA available earlier to more closely align the timing of the financial aid application process with the typical college application process. Additionally, 2-year old US tax information is used to complete the financial sections of the FAFSA beginning with the 2017–2018 academic year. This change in using "prior-prior tax year" information enables families to use the IRS Data Retrieval Tool in the FAFSA to verify their tax information without a delay from the IRS processing tax information. Some financial aid is provided on a first-come, first-served basis, and students are encouraged to submit a FAFSA as soon as possible. According to the U.S. Department of Education's website, students have three options for filling out the form:
online at
in the myStudentAid mobile app
Call 1-800-433-3243 to obtain a PDF of the form
The Higher Education Opportunity Act of 2008 authorized fee-based FAFSA preparation. By law, fee-based FAFSA preparation services must on initial contact with students inform them of the free option and be transparent about their non-affiliation with the U.S. Department of Education and their fees. Students should not engage with FAFSA preparation firms that are not transparent about FAFSA options and their fees upfront, or that promise to obtain scholarships.
Application process
In addition to demographic and financial information, applicants can list up to ten schools to receive the results of the application once it is processed. Historically, there was some concern that colleges could deny admission, waitlist applicants, or offer less financial aid as a result of the order in which applicants list schools on the application, or FAFSA position. However, the US Department of Education changed the FAFSA for the 2016-2017 academic year to prevent schools from having access to view other schools that may be listed on the application. After completing the FAFSA, students are presented with a Student Aid Report. The SAR provides a student with their potential eligibility for different types of financial aid, their Expected Family Contribution, and a summary of the data a student provided in the application. An electronic version of the SAR is made available to the colleges/universities the student includes on the FAFSA. The ISIR is also sent to state agencies that award need-based aid. Students can file an appeal with their college financial aid office in order to seek additional financial aid, though the information about the process is not always clear or available online. SwiftStudent, a free service, provides template letters for college students.
Types of federal financial aid
offers several different types of financial aid programs.
Pell Grant – A grant of up to $6,195 for students with a low expected family contribution. A 2018 NerdWallet study found that students missed out on $2.6 billion in free federal Pell grants by not completing the FAFSA.
Federal Supplemental Educational Opportunity Grant – A grant between $100 – $4,000 for eligible students and the award is available for Undergraduate students. This grant money is limited at colleges and universities and usually is given to those who have completed their FAFSA application early and are eligible to receive this grant.
Stafford Loan – A grant from $5,500 – $7,500 for dependent students depending on academic year. As of July 1, 2015, any Federal Direct subsidized loan will have a fixed interest rate of 4.29% and the interest is paid by the government while the student is enrolled at least half time. The Federal Direct unsubsidized loan also has a fixed interest rate of 4.29% and accumulates onto the outstanding balance.
The Federal Work-Study Program – A program where students can get part-time work, up to a certain amount. In most cases, the federal government pays half of a student's wage and the school pays the other half.
Before September 2019, there was also another option:
Federal Perkins Loan – Under federal law, the authority for schools to make new Perkins Loans ended on September 30, 2017, and final disbursements were permitted through June 30, 2018. This was loan that was like the Stafford but was lent directly by schools that were Title IV-eligible. The interest rate was fixed at 5%.
