Source: The College Investor
The FAFSA – or Free Application for Federal Student Aid – is required for students who want help paying for college. The application is managed by the Department of Education and helps federal, state, and college-level programs allocate financial aid. This includes grants, federal work-study, and eligibility to qualify for student loans.
How much aid a student receives depends on a number of factors including their personal finances. Because many college students receive support from their parents, the entire family’s financial situation is also taken into account as part of the application process.
Filling out the FAFSA correctly is important if you’re expecting to receive financial aid to help pay for college. Small errors can impact how much you receive or whether or not you receive financial aid at all. These are the 10 biggest FAFSA mistakes you’ll want to avoid.
1. Not Following Instructions
Every section of the FAFSA comes with specific questions that must be filled out. Skimming questions too quickly or not reading the instructions in each section can lead to errors. If there’s something you don’t understand, read through the FAFSA website or contact your school’s financial aid office.
2. Missing an Important Deadline
To receive aid, you need to submit your complete application by the deadline. If you’re planning on starting school in fall 2025, the FAFSA is expected to be available around December 1, 2024.
While the actual FAFSA deadline is June 30 of the academic year, you should try to submit your application as soon as possible just to be safe. Some colleges and states may have earlier deadlines.
In Texas, for example, students need to submit a FAFSA application by January 15 to qualify for state-level aid. Know what all the deadlines are and aim to complete your application before it’s due.
3. Waiting Until the Last Minute
Just because you have several months to complete the FAFSA, doesn’t mean you should wait until the last minute.
Funds are limited for different programs. If you wait too late you could miss out on funding – even if you’re eligible for it. Start gathering important documents like tax returns and bank statements now, that way when the application period opens you’re ready to get started.
4. Forgetting to Fill Something Out
There’s a chance a question on the FAFSA might not apply to you. Instead of leaving it blank, just write a zero. If you leave answers blank, your application might not be fully processed.
Before you get ready to submit, double-check to make sure you’ve filled everything out correctly and you didn’t accidentally leave something blank. Here are some best practices to follow when filling out your application.
5. Misreporting Your Financial Situation
The amount of financial aid you receive will largely be dependent on your financial situation. It’s important to report all income from your household, not just money you’ve made working an afterschool job. Check your federal tax return, any W-2s you’ve received, and if you’ve done work as an independent contractor, any 1099 forms you have. Make sure everything matches and there aren’t any mistakes.
You’ll need to include your parent’s income on your FAFSA application, as well as the income of any stepparents if your parents have divorced and remarried. You also need to include any untaxed income as well, including child support and disability.
Another thing you’ll want to be mindful of is your status. Even if you’re responsible for paying your own bills, you might still be considered a dependent or part of your parent’s household. If you’re unsure about your status you can check out this questionnaire provided by StudentAid.gov.
6. Not Listing All the Schools You’re Applying To
The FAFSA is used by individual colleges and universities to award need-based grants to students. If you don’t list all of the schools you plan on applying to, they might not receive your application and won’t be able to offer you additional aid. You can add up to 10 schools to your list and make changes later on.
Some states require you to rank the schools you’re applying to. If you rank a school incorrectly or forget to add it to your ranked list, you could miss out on state grants. This applies to state schools – not private colleges – so if you plan to attend a state school, make sure to rank it at the top of your list.
7. Failing to Refile Each Year
While the FAFSA is an important part of applying to college, many students don’t realize the FAFSA must be filled out annually. This means your financial aid can change from year to year depending on your financial situation.
The good news is once you’ve created login credentials and are in the financial system, the renewal process is much shorter. When you reapply you’ll still want to make sure you fill everything out and avoid making mistakes that could end up costing you in aid.
8. Incorrectly Setting Up Filing Credentials
Before you begin filling out the FAFSA you and your parents will need to create a federal student aid ID or an FSA ID. You’ll need the following information to do so:
- Full name
- Social Security Number
- Date of birth
When you set up your account you’ll also be asked to create a username and password. Keep that tucked away in a safe place as you’ll need to refer back to it when you reapply for aid in the future. To set up your FSA ID go to StudentAid.gov.
9. Not Filling Out Other Applications to Get Financial Aid
While the FAFSA is the main way to get financial aid, it isn’t the only way to cover the cost of college. Many scholarships and grants have a separate process for applying for funding. Some states may also require a different application to qualify for state aid. Know what is and isn’t covered by the FAFSA and don’t forget to fill out all applications to get financial aid.
10. Thinking You Don’t Need to Fill Out the FAFSA At All
Arguably the biggest mistake you can make is thinking that the FAFSA is irrelevant to you. Some students may think financial aid is only for low-income students and they don’t even bother filling out the application. Others, like adults returning to college, may assume funding is reserved for undergrads.
If you aren’t in line to receive any aid, that’s the surest way to ensure you won’t receive it. Unfortunately, this is happening to more and more students. Even if you don’t think you qualify, fill out the FAFSA – just to be safe.