FAFSA determines how much federal student aid you may receive
The Free Application for Federal Student Aid (FAFSA) is the form the U.S. Department of Education uses to decide how much money from federal programs you might receive to pay for college or career school. It does not decide whether you get in to a school — admissions offices make that choice separately. FAFSA only measures your financial need and determines which aid programs you may have access to for and in what amounts.
Schools use your FAFSA information to build a financial aid package. That package might include grants (money you do not repay), loans (money you borrow and repay), and work-study jobs. The amount you receive depends on the cost of the school you attend, your family's financial situation, and which federal programs that school participates in.
Key Takeaways
- FAFSA results determine your Expected Family Contribution (EFC), which schools use to calculate how much aid to offer you.
- Federal grants like the Pell Grant are only available to students who submit FAFSA and meet income limits.
- Federal student loans require FAFSA submission, even if you do not receive grants.
- Schools also use FAFSA data to award their own institutional aid, scholarships, and state grants.
- Your FAFSA information is shared only with schools you list and with state and federal aid programs.
How schools calculate your financial aid package
When you submit FAFSA, the Department of Education calculates a number called your Expected Family Contribution (EFC). This is the amount your family is expected to contribute toward your education based on income, assets, family size, and number of family members in college. Schools receive this number and use it to determine your financial need.
The school's financial aid office subtracts your EFC from the school's total cost of attendance (tuition, fees, room, board, books, and living expenses). The result is your financial need. Schools then build a package to cover that need using federal grants, federal loans, institutional aid, and sometimes state or private scholarships.
Two students with the same EFC might receive different aid packages at different schools because schools have different costs and different amounts of their own money to distribute. A school with a $60,000 cost of attendance will offer more aid than a school with a $20,000 cost.
Federal grant programs that require FAFSA
The Pell Grant is the largest federal grant program. It provides money to undergraduate students from lower-income families, and the amount depends on your EFC, the cost of your school, and your enrollment status (full-time or part-time). Pell Grants do not require repayment.
The Federal Supplemental Educational Opportunity Grant (FSEOG) is a smaller grant for students with exceptional financial need. Schools distribute FSEOG money to their students, so availability varies by institution. Like the Pell Grant, FSEOG does not require repayment.
Teacher Education Assistance for College and Higher Education (TEACH) Grants provide up to $4,000 per year to students who commit to teaching in high-need fields at schools serving low-income students. These grants require a service commitment after graduation.
Federal loan programs that use FAFSA information
Direct Subsidized Loans are available to undergraduate students who demonstrate financial need. The federal government pays the interest while you are in school. Direct Unsubsidized Loans are available to undergraduate and graduate students regardless of financial need, though FAFSA submission is still required to access them.
Direct PLUS Loans allow parents to borrow for their child's education and graduate students to borrow for their own education. These loans do not require demonstrated financial need, but you must submit FAFSA to be considered.
All Direct Loans require repayment after you leave school or drop below half-time enrollment. Interest rates and repayment terms are set by federal law and do not depend on your FAFSA results, but your FAFSA submission is the gateway to accessing these programs.
State and institutional aid programs that use FAFSA
Most states use FAFSA information to award their own grant programs. State grants often have income limits and may require you to attend school in that state. Some states prioritize students with the lowest EFC scores. Without FAFSA, you cannot access state grant money even if you live in a state with robust aid programs.
Colleges and universities use FAFSA data to distribute their own institutional aid and merit scholarships. Some schools use your EFC to determine need-based institutional grants. Others use FAFSA information to verify your enrollment status and family size for merit scholarships that have no financial need requirement.
Private scholarships sometimes require FAFSA submission as proof of college enrollment or to verify that you have not received other aid that would make you ineligible. Always check the scholarship's requirements before applying.
How your FAFSA information is protected and shared
Your FAFSA data is shared only with the schools you list on the form, your state's higher education agency, and relevant federal programs. Schools cannot share your FAFSA information with other schools, employers, or lenders without your permission. The Department of Education protects your data under federal privacy law.
You control which schools receive your FAFSA information by listing them on the form. You can add or remove schools after you submit FAFSA through your Federal Student Aid account. If you do not list a school, that school will not see your FAFSA results unless you give permission later.
Schools use your FAFSA information only for financial aid purposes and to verify enrollment status. They cannot use it for marketing, admissions decisions, or any other purpose without your consent.
What FAFSA does not do
FAFSA does not determine whether you are admitted to a school. Admissions offices make those decisions based on grades, test scores, essays, and other factors they choose. Your financial need or EFC does not affect your admissions status at most schools.
FAFSA does not may provide you will receive aid. If your EFC is higher than the cost of the school you attend, you may have no financial need and receive no need-based aid. You might still be able to borrow unsubsidized federal loans, but grants are not available to students with no demonstrated need.
FAFSA does not lock you into a school or a loan. You can submit FAFSA, receive aid packages from multiple schools, and choose which school to attend. You can also decline loans and accept only grants if that is an option in your aid package.
Frequently Asked Questions
Do I have to submit FAFSA to get student loans?
Yes. Even if you do not expect to receive grants or think your family makes too much money, you must submit FAFSA to access any federal student loans, including unsubsidized loans. FAFSA submission is the first step for all federal loan programs.
Can I use FAFSA at more than one school?
Yes. You list up to 10 schools on your FAFSA form, and each school receives your information. You can submit one FAFSA and receive aid packages from multiple schools, then choose which school to attend. You can add or remove schools after you submit.
What happens if I do not submit FAFSA?
Without FAFSA, you cannot access federal grants, federal loans, or most state and institutional aid. You would be limited to private loans or scholarships that do not require FAFSA. Most students need FAFSA to make college affordable.
Does FAFSA affect my credit score?
Submitting FAFSA does not affect your credit score. FAFSA is not a credit application. If you borrow federal loans, those loans will appear on your credit report once you enter repayment, but the FAFSA submission itself has no credit impact.
Can my school see my parents' income on FAFSA?
Your school sees your EFC number and your family size, but not your actual income or asset amounts. Schools use the EFC to calculate your financial need. Your detailed financial information stays with the Department of Education and is not shared with schools.