How To Apply For Financial Aid

The Free Application for Federal Student Aid (FAFSA) distributes nearly $120 billion in aid for college students annually. By filling out the FAFSA every year, you can learn about your financial aid options, including federal grants, work-study programs, and loans.

Completing the FAFSA is the first step in securing financial aid for college. Federal aid may not cover all college costs, but it can help you graduate with less debt. You can also search for other scholarships, grants, and fellowships to pay for college.

Most people spend less than one hour completing the FAFSA form. Below, you'll find everything you need about the required documents and how to qualify for aid.

How to Qualify for Federal Aid: What You'll Need to Apply

You can qualify for FAFSA aid if you are a U.S. citizen, permanent resident, or eligible noncitizen. You must be enrolled or be accepted into an eligible college or trade program. Below is a list of materials you'll need in order to fill out the FAFSA:

• Social Security Number (or A-Number)
• Tax Returns
• W2s and 1099s
• Bank statements
• Records of any nontaxable income
• Driver's license (if applicable)
• List of schools to send the FAFSA information

6-Step Process to Fill Out the FAFSA

College students fill out the FAFSA annually to qualify for federal loans and other student aid. This section walks through setting up a FAFSA account and filing the application.

1. Set Up Your FAFSA Account

If this is your first time filling out the FAFSA, you'll need to create an FSA ID, or a username and password. If you have filled out the FAFSA in the past, you can renew the application and use stored information or save your work and resume the application later.

The FSA ID also lets you digitally sign the FAFSA form. Parents and guardians must create their own FSA IDs to sign applications, but they should not create an FSA ID for their child.

2. Prepare Financial Information

The need-based FAFSA determines a student's Student Aid Index (SAI), previously known as the Expected Family Contribution (EFC), based on their income, assets, and parents or guardians' financial information. Dependent students must provide parental income information for parents and stepparents. Independent students do not need to provide information about their parents.

The FAFSA requires tax returns, W-2s, 1099s, bank statements, investment information, and untaxed income information. The mandatory IRS Direct Data Exchange Tool transfers income and tax information onto the FAFSA application for most students.

3. Double-Check All Required Documents

To fill out the FAFSA, you'll need a Social Security number and financial information, including federal income tax returns, W-2 forms, 1099s, bank and brokerage account statements. If you're dependent on your parents or guardians, you'll also need their information.

4. Choose Your Schools

FAFSA applicants enter school codes to indicate which schools should receive their FAFSA Submission Summary. The form provides a look-up feature if you do not know the school code. You can also find a college’s federal school code on its website. You can list up to 20 schools on the FAFSA form and send your FAFSA Submission Summary (FSS) to additional schools after submitting.

5. Submit Your FAFSA

After filling out the FAFSA, you can either sign electronically with your FSA ID or send a paper version of the form by mail. However, sending the form by mail could put you at risk of missing school or state deadlines. You must submit the FAFSA by the last day in June, but it's important to double-check your college or state's guidelines, as some set earlier deadlines.

6. Get Your FAFSA Submission Summary

The federal student aid program analyzes the FAFSA application and gives you your FSS. If you file electronically, you should receive your FSS within a few days. If you file by mail, it may take several weeks to receive the report.

What Types of Financial Aid Can You Get with the FAFSA?

The FAFSA helps applicants access federal grants, work-study programs, and student loans. This section introduces the three different types of financial aid you can receive by filling out the FAFSA, starting with aid that does not require repayment (grants and work-study) and ending with aid that you must pay back (federal loans).

1. Federal Grants

Federal grant programs provide money to students with no obligation to repay the award. Both undergraduates and graduate students qualify for federal grants. However, some programs, like the Pell Grant, only award funds to undergraduates.

The most common federal grant, a Pell Grant, awards funds to undergraduates with exceptional financial need. Eligibility depends on your student aid index and is prorated based on enrollment status. In the 2024-2025 academic year, recipients received a maximum of $7,395.

Other federal grants available include the Federal Supplemental Educational Opportunity Grant (FSEOG) and the Iraq and Afghanistan Service Grants. Eligibility varies by grant type. the The Teacher Education Assistance for College and Higher Education (TEACH) Grant, technically a type of forgivable loan, is a federal grant option for students who plan to teach.

2. Work-Study

The federal work-study program connects income-eligible students with part-time jobs. Part-time and full-time undergraduate and graduate students can qualify. After filling out the FAFSA, work-study recipients receive an annual award. Schools administer the work-study program and place students in on-campus and off-campus roles that support the school or public interest.

With work-study, you may receive an hourly wage and will earn at least the minimum wage based on your award amount and degree. However, you cannot earn more at the job than the work-study award amount, which limits how much you work.

3. Federal Loans

Federal student loan programs lend money to eligible students. Loans should be your last choice, as you'll need to repay the loans after graduation. Both undergraduate and graduate students can qualify for federal loans.

Some students who take out federal loans may qualify for loan forgiveness and deferment programs. Federal loans have interest rates of about 6.5-9.1% during the 2024-2025 academic year. Loans to consider include:

• Direct Subsidized: For undergraduates who demonstrate financial need, interest is waived while you attend school and during a six-month grace period after graduation.
• Direct Unsubsidized: For students who do not show financial need, interest will be charged from the time the loan is issued.
• PLUS Loans: Parents, graduate students, and professional students qualify for Direct PLUS loans with a credit check. The U.S. Department of Education issues PLUS loans for amounts up to the value of your college tuition minus other forms of financial aid.

FAFSA Resources

Frequently Asked Questions About Applying for Financial Aid

What can financial aid be used for?

You can use financial aid for tuition and fees, as well as other educational expenses, including your housing and meals, books, supplies, equipment, and transportation. You can also use financial aid for study abroad, and dependent care.

Do you have to pay back financial aid?

Whether you have to pay back financial aid depends on the type. You usually don't have to pay back scholarships or grants, but you must repay student loans. When prioritizing financial aid, choose free money like scholarships and grants first.

As a second option, you can look at earning money from work-study. Finally, choose federal student loans with lower interest rates. In some cases, you may qualify for deferment or loan forgiveness.

Does financial aid cover summer classes?

Yes, financial aid can cover summer classes if you're enrolled in an eligible degree program or university. A year-round Pell Grant, which is up to 150% of the normal Pell Grant, offers aid during the summer term if you are enrolled in an accelerated degree program.

In general, to borrow any federal loans you must enroll in a qualified program at least part time.

However, policies vary by university and program, so it's worth double-checking with your college's financial aid office.

How long does FAFSA take to process?

If you submit the FAFSA online, you can expect to receive your Student Aid Report (SAR) within 3-5 days. If you submitted a paper FAFSA form, your form is usually processed within 7-10 days.

If you provide an email address, you'll get your FAFSA Submission Summary access instructions from [email protected]. If not, you'll receive an FSS via postal mail.

What is the expected family contribution?

As of 2023, the expected family contribution (EFC) was replaced by the Student Aid Index (SAI). The SAI estimates your family's ability to pay the cost of college or trade school.

The SAI is calculated by considering your family's income, assets, and government benefits. You can follow the steps above on how to complete the FAFSA to understand your family's expected contribution.