The FAFSA (Free Application for Federal Student Aid) is the gateway to federal grants, work-study, and loans — and for most colleges, institutional aid too. Filing early and filing correctly can mean thousands of dollars in additional aid. Here is how to do it right.
Who Needs to File
Any student planning to attend a U.S. college or university should file the FAFSA, regardless of family income. Many merit and institutional grants require FAFSA completion even if you do not expect need-based aid. Dependent students (most undergraduates under 24) must include parent financial information.
Documents You Need Before You Start
- Social Security Numbers — for the student and each contributing parent
- Federal tax returns — prior-prior year (e.g., for 2026–27 aid, use 2024 returns); use the IRS Data Retrieval Tool (DRT) to import directly
- W-2s and income records — including untaxed income such as child support or veterans benefits
- Bank statements — current balances for checking and savings accounts
- Investment account values — stocks, bonds, real estate (excluding your primary home and retirement accounts)
- FSA IDs — both student and parent must create accounts at studentaid.gov before filing; allow 1–3 days for identity verification
Understanding the SAI
The FAFSA calculates your Student Aid Index (SAI), formerly called the Expected Family Contribution (EFC). The SAI is a number that schools use to determine how much need-based aid you qualify for. A lower SAI means more potential aid. The SAI is determined by income, assets, household size, and number of students in college simultaneously.
Common Mistakes to Avoid
- Using the wrong tax year. The FAFSA uses prior-prior year income — double-check which year applies before entering figures.
- Skipping the non-custodial parent. If your parents are divorced or separated, the FAFSA requires information from the parent the student lived with most during the past 12 months — and some schools (via the CSS Profile) require both parents.
- Listing assets incorrectly. Retirement accounts and the primary home are excluded; 529 plans owned by a parent are reported as parent assets (more favorable treatment).
- Missing the school list. Add every school you are applying to before submitting — updating later delays processing.
Priority Deadline vs. Final Deadline
The federal deadline is June 30 of the award year, but this is not when you should file. State grant programs often have priority deadlines as early as November or December, and institutional aid at many colleges is first-come, first-served. File as close to October 1 (the opening date) as possible.
What to Do After Submission
- Save your confirmation page and note your SAI number.
- Monitor each college's financial aid portal — some will request additional verification documents.
- If selected for verification, respond promptly; delays can push back your aid offer.
- When award letters arrive in the spring, compare net cost carefully — not just the headline numbers.