FAFSA FAQ: 15 Answers to Your Most Burning FAFSA Questions

 March 31, 2021
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Everyone should submit the Free Application for Federal Student Aid (FAFSA) every year they attend college or graduate school. This important form unlocks the door to federal financial aid, grants and scholarships. To learn more, read on for answers to the most common FAFSA questions.

General FAFSA questions

FAFSA questions about filling out the forms

Questions about federal financial aid

General FAFSA questions

Let’s start with some general information about the FAFSA.

What is the FAFSA?

The Free Application for Federal Student Aid (FAFSA) is a free online application you fill out to qualify for federal financial aid. Many states and colleges also use the FAFSA to grant state and institutional financial aid.

You submit the FAFSA online on the Federal Student Aid website or mobile app. You’ll need to create an FSA ID to access and sign the FAFSA. If you’re a dependent student, your parents will need their own FSA IDs, too.

What does the FAFSA have to do with financial aid?

After you submit the FAFSA, the government will look at your information and use it to calculate your Expected Family Contribution (EFC). Your EFC, soon to be renamed Student Aid Index (SAI), is how much you and your family are expected to pay for your education.

Once your EFC is determined, it’s up to your college to put together your financial aid package. Your college’s financial aid office determines need-based aid by subtracting your EFC from its total cost of attendance.

Need-based aid could be in the form of federal grants, Direct subsidized loans or work-study opportunities. Note that colleges don’t necessarily meet your full financial need.

You can also get non-need based aid, depending on how much other aid you’ve already received based on the FAFSA. Loans that are non-need based aid include Direct Unsubsidized Loans and federal PLUS loans.

Am I eligible for federal financial aid?

To be eligible for federal financial aid, you must meet the following requirements:

  • Be a U.S. citizen, permanent resident or eligible noncitizen
  • Have or be on track for your high school diploma
  • Be accepted or enrolled at a Title IV school
  • Be registered with Selective Service, if you’re a male student
  • Maintain satisfactory academic progress in college or grad school. If your GPA falls too low, you’ll lose eligibility for FAFSA loans and financial aid

When do I apply for the FAFSA?

The FAFSA application typically opens on Oct. 1 and closes more than a year and a half later on June 30. For the 2021-2022 school year, for example, you can apply for the FAFSA between Oct. 1, 2020 and June 30, 2022.

Some colleges and states, however, set earlier deadlines for financial aid. Check with your college to see if it sets its own FAFSA deadline. Since some financial aid is distributed on a first-come, first-served basis, it’s a good idea to submit the FAFSA as close to Oct. 1 as possible.

Plus, many regular decision colleges want to hear your attendance decision by May 1. By filling out the FAFSA early, you’ll be able to compare financial aid packages from multiple colleges. Then, you’ll be able to better decide on a school.

What should I do if I miss the FAFSA deadline?

If you miss your college’s FAFSA deadline, contact the financial aid office. Some states and colleges award aid to latecomers.

As for the federal FAFSA, you’ll have access to it until the end of the school year. If you don’t apply for that school year, fill out the FAFSA for the following year instead.

What is the Student Aid Report (SAR)?

The Student Aid Report (SAR) is a document you’ll receive after filling out the FAFSA. It sums up all your answers on the FAFSA application. Look over the SAR to confirm all your information is correct, and notify the FSA if there are any errors. If everything looks good, simply keep the SAR for your personal records.

FAFSA questions about filling out the forms

Up next on the FAFSA FAQ are questions about filling out the application itself. Read on to learn what information you need to apply for financial aid.

What information do I need to apply for the FAFSA?

The FAFSA asks for personal and financial information. You’ll fill out your contact details, as well as your Social Security number or resident ID. You’ll also indicate up to 10 colleges to receive your FAFSA information.

You or your parents will also provide information from the prior year’s tax return. Beyond gross income, the form asks for your bank account balance, investments and recurring expenses.

Can I use the IRS Data Retrieval Tool to import tax information?

Yes, the IRS Data Retrieval Tool (DRT) is available for the 2021-2022 FAFSA. You can use it to import your data directly from the IRS website into the FAFSA.

For a preview of the application, check out this PDF on the 2021-2022 FAFSA.

Do I need to submit the FAFSA every year?

Yes, you will need to submit the FAFSA every year to remain eligible for federal student aid. After filling it out the first time, you can submit a renewal FAFSA in subsequent years. The website will automatically fill in most of your information from the previous year.

You just need to double-check that everything is still correct. You can also start from the beginning if you need to make significant changes.

Can I edit the FAFSA after I submit it?

Yes, you can edit the FAFSA after you submit. In fact, you’re required to do so if there’s a change in your dependency status, in the number of your family members or in the number of people in your household who are in college.

You can also fix mistakes you made when filling out the form. To make corrections to the FAFSA, log in to your account and click on “Make FAFSA Corrections.” Enter your FSA ID, make any updates and then hit submit.

You can correct any field with the exception of your Social Security number. If you entered an incorrect Social Security number, contact the financial aid office of your college. They might advise you to submit an entirely new FAFSA.

What do I do if my (or my parents’) income changes?

If your family’s income changes dramatically (a parent lost their job, for example), speak with your school’s financial aid office. The college might be able to accommodate your new circumstances. However, additional aid isn’t guaranteed.

The government determines your EFC based on the information that was accurate at the time. If that information is no longer accurate, you’ll need to discuss the changes with your school.

Should I file for the FAFSA even if I don’t think I’ll qualify for financial aid?

Yes. Don’t neglect to fill out the FAFSA because you think you won’t qualify. There’s no income cutoff for financial aid. Plus, some schools rely on the FAFSA to award scholarships.

Filling it out will also protect you in the event your financial circumstances change. If a parent loses their income, for example, you can speak with your college’s financial aid office about readjusting your financial aid package. But you won’t qualify for federal aid if you never filled out the FAFSA in the first place.

Some common FAFSA myths lead students to believe they’re not eligible for financial aid. Don’t let these misconceptions make you miss out on grants or scholarships.

Questions about federal financial aid

Finally, no list of common FAFSA questions would be complete without explaining how federal financial aid works. Here’s how the FAFSA leads to loans and other types of aid.

What are the different types of financial aid?

Financial aid packages are made up of a mix of grants, scholarships, student loans and work-study options. Grants and scholarships, in most cases, you don’t have to pay back this type of financial aid. You will have to pay back student loans — with interest.

The federal work-study program is only available to students with a certain amount of financial need. It allows you to work part time on campus and earn money each semester. If you’re interested in being considered for work-study, make sure to indicate that on the FAFSA.

How much financial aid will I get?

The amount of financial aid you’ll receive largely depends on the college or graduate school. Some colleges even meet full financial need for all accepted students.

Other colleges might not meet your full financial need. In that case, you will need to find other sources of funding, such as private student loans, if you still wish to attend that school.

Remember that financial aid includes federal student loans — up to $31,000 for dependent undergraduates and up to $138,500 for graduate students. So even if your financial aid award meets your full financial need, you might take on significant debt to pay for school.

To estimate your financial aid package, check out the FAFSA4caster tool. This tool gives you a sense of how much it will cost to attend each school on your list. It can’t predict exactly how much aid you’ll get from each school, but it will give you a rough estimate of the total cost.

When do I get my financial aid package?

College financial aid offices determine your financial aid award. Many regular decision colleges send out admissions decisions in March or April of your senior year in high school. Financial aid packages often come at the same time or shortly after.

Some rolling-decision schools send out decisions and financial aid packages later in the spring or summer. But you should be able to view and compare financial aid packages before it’s time to pick a college.

Don’t forget about institutional aid, scholarships

In addition to finding answers to your FAFSA questions, you should also apply for institutional aid and independent scholarships.

Some colleges, for example, require the College Scholarship Service (CSS) Profile. The College Board administers the CSS Profile. A good number of colleges use it to award nonfederal student aid.

Plus, you can apply for scholarships from local and national organizations. By covering all your bases, you’ll get the largest amount of financial aid for college possible. To get started, check out our listing of the best scholarship search tools around the web.

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1 Important Disclosures for College Ave.

CollegeAve Disclosures

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.

This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. This informational repayment example uses typical loan terms for a first year graduate student borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.10% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $141.66 while in the repayment period, for a total amount of payments of $16,699.21. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.

Information advertised valid as of 11/24/2021. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.


2 Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

3 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.

Earnest Disclosures

  1. Rates include 0.25% Auto Pay Discount
     
  2. Explanation of Rates “With Autopay” (APD)
    Rates shown include 0.25% APR discount when client agrees to make monthly principal and interest payments by automatic electronic payment. Use of autopay is not required to receive an Earnest loan.

    Available Terms
    For Cosigned loans – 5, 7, 10, 12, 15 years. 
    Primary Only – 10, 12, 15 years

    In school deferred payment is not available in AL, AZ, CA, FL, MA, MD, MI, ND, NY, PA, and WA).


4 Important Disclosures for Ascent.

Ascent Disclosures

Ascent loans are funded by Bank of Lake Mills, Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: AscentFunding.com/Ts&Cs.

Rates are effective as of 10/01/2021 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes income-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates.

1% Cash Back Graduation Reward subject to terms and conditions, please visit AscentFunding.com/Cashback. Cosigned Credit-Based Loan student borrowers must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs are available for the most creditworthy applicants and may require a cosigner.


5 Important Disclosures for SoFi.

Sofi Disclosures

UNDERGRADUATE LOANS: Fixed rates from 2.99% to 10.66% annual percentage rate (“APR”) (with autopay), variable rates from 0.95% to 11.18% APR (with autopay). GRADUATE LOANS: Fixed rates from 4.08% to 10.90% APR (with autopay), variable rates from 1.00% to 11.29% APR (with autopay). PARENT LOANS: Fixed rates from 4.23% to 10.66% APR (with autopay), variable rates from 1.15% to 11.18% APR (with autopay). For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 11/01/2021. Enrolling in autopay is not required to receive a loan from SoFi. Loans originated by SoFi Lending Corp. or an affiliate (dba SoFi), licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. NMLS #1121636 (www.nmlsconsumeraccess.org).


6 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

Undergraduate Rate Disclosure: Variable interest rates range from 1.03% – 11.01% (1.03% – 10.24% APR). Fixed interest rates range  from 3.23% – 11.70% (3.23% – 10.83% APR).

Graduate Rate Disclosure: Variable interest rates range from 1.89% – 10.66% (1.89% – 10.41% APR). Fixed interest rates range from 4.64% – 11.23% (4.64% – 10.95% APR).

Business/Law Rate Disclosure: Variable interest rates range from 1.89% – 9.22% (1.89% – 8.50% APR). Fixed interest rates range from 4.24% – 9.74% (4.24% – 9.02% APR).

Medical/Dental Rate Disclosure: Variable interest rates range from 1.89% – 8.02% (1.89% – 7.72% APR). Fixed interest rates range  from 4.18% – 8.54% (4.18% – 8.24% APR).

Parent Loan Rate Disclosure: Variable interest rates range from 1.97%-7.06% (1.97%-7.06% APR). Fixed interest rates range from 4.55%-7.58% (4.55%-7.58% APR).

Bar Study Rate Disclosure: Variable interest rates range from 4.44% – 9.58% (4.44% – 9.52% APR). Fixed interest rates range  from 7.39% – 12.94% (7.39% – 12.82% APR).

Medical Residency Rate Disclosure: Variable interest rates range from 3.53% – 7.03% (3.53% – 6.75% APR). Fixed interest rates range from 6.99% – 10.49% (6.97% – 10.08% APR).

Variable Rate Disclosure: Variable Rates advertised are based on the one-month London Interbank  Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business  day, of the preceding calendar month. As of November 1, 2021, the one-month LIBOR rate is 0.09%.  Variable interest rates will fluctuate over the term of the loan with changes in the LIBOR rate, and will  vary based on applicable terms, level of degree and presence of a co-signer. Your final variable rate may  be based upon the 30-day average SOFR index, as published by the Federal Reserve Bank of New York.  The maximum variable rate is the greater of 21.00% or Prime Rate plus 9.00%.

Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer.

Lowest Rate Disclosure: Lowest rates are only available for the most creditworthy applicants, require a  5-year repayment term, immediate repayment, a graduate or medical degree (where applicable), and  include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the  Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and  conditions, and are subject to change at any time without notice. Such changes will only apply to  applications taken after the effective date of change.

Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer.  Borrowers should carefully review federal benefits, especially if they work in public service, are in the military, are considering possible loan forgiveness options, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision on our website including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.

Eligibility Criteria: Applicants must be a U.S. citizen, permanent resident, or eligible non-citizen with a creditworthy U.S. citizen or permanent resident co-signer. For applicants who have not attained the age of majority in their state of residence, a co-signer is required. Citizens Bank reserves the right to modify eligibility criteria at any time. Citizens Bank private student loans are subject to credit qualification, completion of a loan application/Promissory Note, verification of application information, and if applicable, self-certification form, school certification of the loan amount, and student’s enrollment at a Citizens Bank participating school.

Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.

Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.


7 Important Disclosures for Funding U.

Funding U Disclosures

Offered terms are subject to change. Loans are made by Funding University which is a for-profit enterprise. Funding University is not affiliated with the school you are attending or any other learning institution. None of the information contained in Funding University’s website constitutes a recommendation, solicitation or offer by Funding University or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.

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