After working in financial aid for several years, I understand that you may have questions and uncertainties about whether or not to fill out the Free Application for Federal Student Aid (FAFSA). So I thought that I would compile a list of the top 8 reasons why you should consider filling out the FAFSA.
You not only want to read the items on the list, but you will also probably want to check out the end of the article where I answer several questions people have when deciding whether to fill out the FAFSA.
Should I Fill Out the FAFSA?
Before we get into our list let me first let me quickly share my thoughts on whether you should fill out the FAFSA.
If I were to make a blanket statement, I would say that yes, every student should fill out the FAFSA. Assuming that you are an eligible citizen or eligible noncitizen, completing the FAFSA is the gateway to a multitude of financial resources to help you pay for college. I would say that on average completing the Free Application for Federal Student Aid will be the most impactful thing you can do to help cover the costs of your education – especially when you consider the small amount of time it takes to fill out the application – I always say that completing the FAFSA should be on every student’s “to-do” list.
But enough about what I believe after many years of working in higher ed. Let’s get to our list of reasons why YOU should fill out the FAFSA.
Top 8 Reasons Why You Should Fill Out the FAFSA
#1 Federal Grants
One of the most compelling reasons to fill out the FAFSA is the potential to receive federal grants. Grants are attractive to students and families they are a type of financial assistance that doesn’t have to be repaid. The College Board reported that in 2021-22, total federal grant aid was an incredible $36.5 billion including $25.9 billion in Pell Grants.
The FAFSA determines your eligibility for federal grants like the Pell Grant, By submitting the FAFSA, you open yourself up to the possibility of receiving this valuable aid and ensure that you don’t leave any grants that you are eligible for unused.
#2 Work-Study Opportunities
One strategy many students like to use to help cover the costs of higher education is to work part-time while attending college. Being able to work on campus is a popular option due to its convenience, location, flexibility, and the wide variety of jobs offered. That said if you have been awarded college work-study as part of your financial aid package, getting one of these jobs on campus can be a lot easier.
The FAFSA is also a requirement to access work-study programs, which provide students with part-time jobs on campus. Being eligible for work-study dollars increases your chance of securing part-time employment opportunities on campus, helping you earn money to cover your educational expenses while gaining valuable work experience.
#3 Institutional Scholarships and Grants
Many colleges and universities use the FAFSA to determine eligibility for their own institutional scholarships and grants. While the criteria used to determine eligibility for these awards are often based on factors other than financial need, such as academic achievements, leadership abilities, or specific talents, there are also many institutional scholarships and grants where the information contained in the FAFSA is used to determine a student’s eligibility.
By completing the FAFSA, you ensure that you are considered for these additional sources of funding from your college that could significantly help to offset college costs.
#4 Access to Various Aid Programs
Completing the FAFSA opens doors to a wide range of aid programs beyond just federal grants, work-study opportunities, and institutional awards.
Many state governments and private organizations use FAFSA information to award grants or scholarships that have a financial need component. By filling out the FAFSA, you can be considered for a variety of aid programs that can further support your educational journey.
#5 Access to Federal Student Loans
I always try to be careful when speaking about student loans because I never want to see students taking out more loan dollars than they need or ending up graduating with a huge amount of debt and struggling to make large student loan payments every month. That said, I understand that unless you come from a wealthy family, being able to access student loans might be the only way to make paying for your college education a reality (I know that was the way it was for both myself and my wife when we went to college), but you need to keep a close eye on how much you are borrowing. I will get off of my soapbox now.
Although student loans should be approached with caution, if you need student loans to make things work out financially federal student loans are where you want to start. Federal student loans often offer more favorable interest rates and repayment options compared to private loans. By completing the FAFSA, you gain access to federal student loan programs, providing you with a potential source of funding if you need it.
#6 Unforeseen Circumstances
One thing that working as a college financial aid advisor for several years has taught me is that life can be unpredictable and that financial situations can change quickly.
Unforeseen circumstances such as job loss, illness, and car repairs can quickly change a student’s or family’s financial situation and can dramatically impact the ability to pay for college. By filling out the FAFSA, even if you plan on paying for the costs of college out of pocket, you create a safety net. If unexpected challenges arise during the school year, having the FAFSA on file will allow you to explore and access additional financial assistance options more quickly.
Yes, you could wait until the unexpected happens before filling out the FAFSA, but by doing so you will have to wait longer before being able to access any financial aid resources that you might be eligible for (including federal student loans).
#7 Filling Out the FAFSA Is Easy
Contrary to what some people may believe, filling out the FAFSA isn’t that daunting of a task. The application has been streamlined and simplified over the years. Plus, with the ability to complete the application online and there are resources available to guide you through the process. In addition, unlike years ago when we did everything on paper and you had to enter everything on the application you now have the option to pull your information from the IRS, which makes completing the application even easier. In the end, the potential benefits far outweigh the time and effort required to complete the application.
#8 Submitting the FAFSA Is Free
Perhaps one of the most appealing aspects of the FAFSA is that it doesn’t cost anything to submit. So since it’s a free application that can open doors to financial aid opportunities that would otherwise be inaccessible, you have nothing to lose by applying.
FAQs About Whether You Should Fill Out the FAFSA
Now, let’s address some common questions and concerns regarding whether or not someone should fill out the FAFSA.
Should I File My FAFSA if Im Graduating This Year?
If you have already filled out the FAFSA for your final year in college there most people don’t need need to complete the FAFSA again. However, there are two instances where you would want to complete the application for the next aid year.
- You Aren’t 100% Sure That You Will Be Graduating – If you hope to graduate at the end of the current school year, but you are not sure if you will be able to get everything done on time it is probably better to play it safe and fill out the FAFSA for the next academic year. That way if end up needing extra time to complete your studies and you are eligible for any grants or institutional aid that are in limited supply you will ensure that you are considered for those awards before they are gone.
- You Plan On Going to School to Earn Another Degree During the Next School Year – Whether you are planning on transferring from a community college to a 4-year school to earn your bachelor’s degree or whether you plan on beginning graduate school during the next school year you will still want to complete the FAFSA as you still can be considered for financial aid in both situations.
Should I Fill Out FAFSA if My Parents Make a Lot of Money?
Yes, you should still fill out the FAFSA regardless of your parents’ income level. The FAFSA looks at various factors beyond just income, such as taxes paid, family size, and the number of family members in college. Even if your parents have a high income, you may still be eligible for certain types of federal or state financial aid, such as federal student loans as we discussed earlier. In addition, remember that many colleges and universities use the FAFSA to award their own institutional scholarships and grants, which can provide assistance regardless of income. So you don’t need to be eligible for things like the Pell Grant in order to benefit from filling out the FAFSA.
Should I Fill Out FAFSA as a Fifth Year?
As a fifth-year undergraduate student, you may be wondering if you should still fill out the Free Application for Federal Student Aid (FAFSA). The answer is yes, you should definitely complete the FAFSA for your fifth year of undergraduate studies.
It is true that there are some scholarships or other types of financial aid that are awarded for a set number of years. It is also true that there is a maximum amount of time that you are eligible to receive federal financial aid, but the vast majority of students won’t surpass the maximum amount of time they can be eligible for most types of financial aid. So even if you are going to take an extra year to earn your bachelor’s degree you should still plan on filling out the FAFSA for your fifth year of undergraduate studies.
Should I Fill Out the FAFSA if I Pay Out of Pocket?
Filling out the FAFSA is a smart decision, even if you plan to pay for college out of pocket. Not only can completing the FAFSA get you consideration for institutional grants and scholarships, but the application can also serve as a safety net in case your financial circumstances change over the course of the school year.
However, if you have filled out the FAFSA in the past and didn’t get any federal or state financial aid and also weren’t awarded any institutional aid, you might be OK not filling out the FAFSA if your financial situation is stable enough that a job loss or unexpected expenses wouldn’t impact your need for student loans or any other type of financial aid. Ultimately, it’s essential to weigh the potential benefits of completing the FAFSA against the time and effort required to fill out the form, which is minimal.
What Is the Downside of Filling Out FAFSA?
In reality, there are very few downsides to filling out the FAFSA with the potential benefits, including access to grants, work-study opportunities, and favorable student loans, far outweighing any potential negatives surrounding filling out the application. That said let’s go through some of the negatives that people talk about regarding filling out the FAFSA.
Privacy concerns: Completing the FAFSA requires providing personal and financial information, which some individuals may be uncomfortable sharing.
Time-consuming process: Despite the ease of filling out the FAFSA these days many people still believe that it is a time-consuming process, especially if you are unfamiliar with the form or have a complex financial situation.
Potential impact on college admissions and institutional aid: According to Inside Higher Ed, a small number of unnamed colleges may use the order in which students list schools or other data on their FAFSA as a way of predicting interest in the school. This could potentially affect your chances of admission or financial aid at certain institutions.
Despite these potential downsides, it is generally recommended that students complete the FAFSA to maximize their opportunities for financial assistance in paying for college.
Who Should Not Fill Out the FAFSA?
In general, it is recommended that everyone completes the FAFSA. However, there are a few situations where it may not be worth your time or you might need to get some things taken care of before you could be eligible for aid. These situations include:
You are not an eligible citizen or noncitizen: To qualify for federal financial aid you must be an eligible U.S. citizen or eligible noncitizen. If you don’t fall into one of these categories filling out the FAFSA won’t be productive for you.
You are not in an eligible degree or certificate program: You must be enrolled or accepted for enrollment in an eligible degree or certificate program at a participating college or career school. If you are just taking a class or two and haven’t been admitted into an eligible degree or certificate program you won’t be eligible to receive federal aid. The degrees and certificates offered at most schools are typically considered eligible programs. However, if you have any questions about whether your program is eligible for you to receive federal financial aid, talk to your school and they will be able to help you.
You are in default on a previous federal student loan or owe a refund on a federal student grant: You must not owe a refund on a federal student grant or be in default on a federal student loan if you want to receive more aid in the future. If you do owe a refund or are in default you need to resolve those problems in order to regain aid eligibility for the future.
You have not maintained satisfactory academic progress at your school while pursuing your degree or certificate: You must maintain satisfactory academic progress (SAP) in college or career school in order to continue receiving aid. If you are struggling to meet the satisfactory academic progress requirements at your school and are currently ineligible to receive aid you can talk to a financial aid advisor to understand what you can do to improve your academic standing and regain your eligibility for the future.
Final Thoughts
Filling out the FAFSA is a valuable step to accessing various financial aid resources, including grants, work-study opportunities, institutional scholarships, and federal student loans, that can provide significant assistance in covering the cost of your education. It is a relatively straightforward process with minimal downsides, providing a safety net and potential financial support throughout your college journey, making the act of filling out the application something that every student should consider.
