For most students, the Free Application for Federal Student Aid (FAFSA) is a key first step in securing financial assistance for college. However, over the years I have had many students and their families ask me if filling out the FAFSA is mandatory or if it is worth their time and effort. In this article, we will address common questions and concerns surrounding the importance or necessity of filling out the FAFSA to help you make an informed decision.
What is the FAFSA?
If you are new to all of this you might be wondering what the FAFSA is. The FAFSA, or Free Application for Federal Student Aid, is a form used by the U.S. Department of Education to determine a student’s eligibility for federal financial aid. This includes grants, work-study programs, and federal student loans.
In addition, many states and colleges use the FAFSA to assess students’ eligibility for their own financial aid programs.
The FAFSA is used by both undergraduate and graduate students and as its name implies there is no cost to complete and submit the FAFSA.
How Do I Fill Out the FAFSA?
Filling out the FAFSA is a relatively straightforward process. You can complete it online at fafsa.ed.gov.
Students and parents (for dependant students) will need to create a Federal Student Aid (FSA) ID, which serves as your electronic signature. In addition to providing some demographic information about your household, to complete the application you will need to have information from various financial documents including federal tax returns, bank statements, and records of untaxed income.
The FAFSA opens on October 1st each year, and it’s important to submit it as early as possible to maximize your financial aid opportunities.
What Kind of Financial Aid Can I Get From Filling Out the FAFSA?
By completing the FAFSA, your eligibility can be determined for a range of financial aid options. This includes federal grants like the Pell Grant, which doesn’t need to be repaid, as well as federal work-study programs that provide part-time employment opportunities on campus. Additionally, the FAFSA determines your eligibility for federal student loans with favorable interest rates and repayment terms.
It is also worth pointing out that in addition to determining eligibility for a variety of federal and state financial aid programs, there are many scholarships that require applicants to complete the FAFSA as part of their application process.
Consequences of Not Filling Out the FAFSA
By not filling out the FAFSA, you may miss out on valuable financial aid opportunities. Firstly, you would be ineligible for federal financial aid programs, which can greatly assist in reducing college costs. You may miss out on receiving assistance from state financial aid programs. Moreover, many colleges and universities require the FAFSA for awarding institutional aid and scholarships. Plus let’s not forget that some private merit-based scholarships require FAFSA completion as part of their application process as we mentioned earlier. So by skipping the FAFSA, you may miss out on many valuable sources of financial assistance for your educational expenses.
Do College Students Have to Fill Out the FAFSA?
While it’s not mandatory for students to fill out the FAFSA in order to attend college, most financial aid counselors would highly recommend it.
Even if you’re unsure about your eligibility for financial aid, submitting the FAFSA allows you to be considered for various assistance programs and I have personally seen many times when families were surprised at what their student qualified for. In addition, I have seen families who thought they had the cost of college covered experience financial changes mid-year and end up needing to utilize financial aid programs they weren’t expecting to and feeling happy that they had completed the FAFSA. So while filling out the FAFSA isn’t required it is certainly viewed as a good idea for most students.
Do I Need to Fill Out the FAFSA Before Applying to College?
From an admissions perspective, completing the FAFSA before applying to college is not typically required. The college application and the FAFSA are separate processes, and submitting one does not depend on the other.
However, as someone who has worked as a financial aid advisor, I strongly recommend filling out the FAFSA as early as possible, preferably before or shortly after applying to college. Completing the FAFSA early ensures that you don’t miss out on any potential financial aid opportunities as some financial aid programs have limited funding, and are awarded on a first-come, first-served basis. By submitting the FAFSA early, you increase your chances of receiving those types of aid before they run out and improve your chances of receiving the maximum amount of aid for which you are eligible.
In addition, don’t forget that many colleges and universities require the FAFSA in order for you to be considered for certain institutional aid programs and scholarships, most of which are in limited supply. Completing the FAFSA in a timely fashion not only allows you to be considered for these sources of aid but it enables you to have a comprehensive view of the institutional financial aid and scholarship opportunities available to you at a school before making your admission decision.
Do I Need to Fill Out FAFSA Even if I Don’t Qualify for Financial Aid?
Another common question students and families have is, “Do I need to complete the FAFSA even though I don’t qualify for grants or college work-study?” This sort of question usually comes up for families that make a lot of money or when they have filled out the FAFSA in the past, didn’t get these types of awards, and know that their financial situation hasn’t changed since the last time they filled it out.
However, you need to remember that the FAFSA is not just for determining eligibility for need-based financial aid that you don’t have to pay back like grants, and work-study. It is used to determine eligibility for a wide range of federal and state aid programs, as well as institutional scholarships and grants. By completing the FAFSA, you ensure that you are considered for all available aid programs, including those that may not be solely based on financial need.
In addition, if you think that you will want to utilize student loans to help pay for your college expenses, you will need to complete the FAFSA. Federal student loans are available to all students who file the FAFSA, regardless of financial need or income. These loans typically have lower interest rates and better repayment terms than private student loans, making them a more attractive option for many families, making filling out the FAFSA essential.
Final Thoughts
While it may not be mandatory, the benefits and potential consequences of not completing the FAFSA make it an essential step in the college financial aid process for the vast majority of students and their families. Since completing the FAFSA is a relatively simple and straightforward process most people find it to be worth their investment of time and effort.
