FAFSA Tips
Being knowledgeable about FAFSA is one of the most important tools you can have during your college application process. Whether you're aiming for grants, scholarships, or federal student loans, the FAFSA is your ticket to making college more affordable.
So here is everything you need to know about the FAFSA and some essential tips to help you maximize your financial aid.
Why is the FAFSA is essential??
The FAFSA is more than just a form - it’s the key to unlocking all kinds of financial aid, including:
Federal grants (like the Pell Grant, which doesn't need to be repaid)
Student loans (which tend to have lower interest rates than private loans)
Work-study opportunities (which allow you to earn money while in school)
State and school-specific scholarships (many of which require a completed FAFSA)
It’s important to file the FAFSA every year you're in college, as your financial aid eligibility can change based on your family’s circumstances. But don’t worry, what was once a complicated process is becoming more streamlined and user-friendly, thanks to updates like the FAFSA Simplification Act.
How to Maximize Your Aid: Key Tips for Filing
1. File Early
The FAFSA opens on October 1 each year, and while the deadline is June 30, submitting your application as early as possible is critical. Many need-based grants and scholarships are first-come, first-served, meaning earlier filers are more likely to receive these funds before they run out. Don’t wait!
2. Avoid Common Mistakes
Filing the FAFSA correctly the first time saves you from the hassle of having to resubmit. Some common errors include:
Misreporting income (use the IRS Data Retrieval Tool for accuracy)
Misunderstanding dependency status (visit StudentAid.gov if you're unsure)
Forgetting to list all the schools you're applying to (you can list up to 20)
Forgetting to digitally sign the form at the end!
If you do make a mistake, don’t worry, just submit a correction as soon as possible to avoid delays in processing your financial aid package.
3. Know Your Base-Year Income
The FAFSA calculates financial aid using your "base year" income (this means that for the 2024-2025 school year, the FAFSA will assess your family’s income from 2022). Since income plays a big role in determining your aid eligibility, some sources suggest you take steps to minimize reportable income during that base year (legally, of course!). For instance:
Avoid realizing capital gains during the base year
Offset gains by selling investments at a loss to reduce reportable income
Delay retirement plan withdrawals (for parents)
These strategies can help position you for more financial aid. Make sure you advise an expert source before doing this!
4. Reduce Reportable Assets
Both income and assets are considered when calculating your Expected Family Contribution (EFC) (or Student Aid Index (SAI) under the new rules). However, student-owned assets are assessed more heavily than parent-owned assets. To reduce your reportable assets, consider:
Paying down debt (credit card balances, for example)
Keeping savings in a parent’s account, as opposed to the student’s
5. File Even If You Don’t Expect to Qualify
You may think your family’s income is too high to qualify for need-based aid, but it’s always worth submitting the FAFSA. Not only does it make you eligible for low-cost federal student loans, but many merit-based scholarships require a FAFSA on file. Plus, you may be surprised by what you’re eligible for - especially if your family’s financial situation has recently changed.
*FAFSA and Family Dynamics: Special Cases*
1. Divorced or Separated Parents
If your parents are divorced or separated, only the parent who provides the majority of your financial support needs to complete the FAFSA. If that parent is remarried, their spouse’s income must also be reported.
2. Multiple Children in College
If you have siblings attending college at the same time, your family’s EFC is divided by the number of students enrolled. This can increase your aid eligibility, so it’s worth coordinating enrollment years with siblings when possible.
What Happens After You File?
Once you’ve submitted your FAFSA, you’ll receive a Student Aid Report (SAR), which summarizes your financial information and outlines your Expected Family Contribution (EFC) or Student Aid Index (SAI). Colleges will use this to calculate your financial aid package, which includes grants, loans, and work-study opportunities.
Each school you listed on the FAFSA will notify you of your financial aid package, either with your acceptance letter or shortly after. This will outline how much aid you’re eligible for, including both need-based and merit-based awards.
The FAFSA can seem like a tedious process, but by filing early and avoiding common mistakes, you can maximize the financial aid available to you.
Follow these tips to get the most out of your FAFSA and reduce the financial burden of college. If you need more guidance, set up a call with us here!
Best of luck,
Melina Kazanas
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