FAFSA: Your Questions Answered

College is expensive, and costs keep rising. Thankfully, in the United States, there’s one straightforward way to apply for financial aid in higher education: the FAFSA, or Free Application for Federal Student Aid.

The FAFSA works by generating information that college financial aid departments use to determine what kind of grants, loans, work-study opportunities and other resources to extend to students who qualify for aid. And more people qualify for financial aid than you might think. 

It’s important to remember that students who want financial aid need to fill out the FAFSA every year to apply for financial aid the following year. It can be a daunting task, so here’s what you need to know to apply for financial aid and fill out the FAFSA. 

How FAFSA Works and How to Fill It Out 

Where Do You Complete the FAFSA?  

The new FAFSA form for the 2024-25 academic year (and every year) is located online at the Federal Student Aid website. Applicants need a federal student aid ID and password. If a student has previously filled out a FAFSA, they should already have that information. If this is their first time, they’ll need their Social Security number. (If your student has lost their ID, they can fill out a form to retrieve it.) Once you’ve logged on, the site will walk you through filling out the FAFSA and applying for financial aid.

One common FAFSA mistake to avoid: Students and parents often mix up their IDs. When starting an application, be sure you have the right info on hand. 

What Information Do I Need to Fill Out the FAFSA?

It’s much easier to fill out the FAFSA form if you gather the necessary paperwork in advance. A great place to start is this checklist of documents you’ll need, created and compiled by the U.S. Department of Education. Because the application takes into account everything from citizenship status to financial independence when determining aid, you’ll need to have items like tax returns and bank statements handy.

What Do These Tricky FAFSA Questions Mean?

With more than 100 questions on the form, it can be confusing to determine what information FAFSA needs. Most are straightforward, but a few can be confusing. Here are a few to be aware of:

• Questions 21-22 – Parents’ Level of Education: Be sure to read this question carefully. The FAFSA asks about completed education. A parent who is just a few credits shy of a degree might be tempted to say they’ve completed the degree, but answering truthfully can work to a student’s advantage. There is often aid available to students with parents who don’t have a college degree.    
• Question 28 – Work Study: Even if your child doesn’t think they want to work during school, checking “yes” will ensure they’re kept abreast of on-campus opportunities that can be a great way to earn money while in school. And remember, your student doesn’t have to accept work study, even if it is part of their financial aid award.    
• Questions 57-64 – Parents’ Social Security Information: Parents who live together will need to provide their financial information, whether or not they plan to help pay for their student’s education. However, if parents are divorced or separated, the parent with whom the student lives with most often (even 51 percent of the time) should be considered the primary parent, if the student is claimed on tax forms as a dependent.    
• Question 86-89 – Parents’ Cash and Investments: This is where your student lists family assets, which include taxable investment accounts and 529 savings plans. Exclude the value of the home your student lives in and retirement accounts. And be sure your student is only reporting the family and savings assets once, preferably as your assets.

When Is the FAFSA Application Deadline?

When you fill out the FAFSA depends on where your child lives and which schools they would like to share information with. You can view your state's deadlines here. Don’t wait until the last minute to apply, because colleges often award financial aid on a first-come, first-serve basis. The earlier they submit, the more likely they will be to receive a better financial aid package. 

Where Should I Send Completed FAFSA Information?

Even if your student hasn’t decided on a college yet, they should complete the FAFSA and request that it be sent to the top 10 colleges they are considering. If they change their mind on schools after they complete it, they can simply log onto the FAFSA website and click the “Make Corrections” link. From there, they can replace old schools with their new schools.

What Happens After We Complete the FAFSA?

After completing the FAFSA, your student will receive a Student Aid Report (SAR), which summarizes the financial data that you’ve submitted. Be sure they review the SAR for accuracy and make any changes necessary. The SAR will also be sent to the schools they indicated when filling out the FAFSA. The schools will use it to compile a financial aid package that will include a combination of grants, scholarships, loans and work study jobs that will help your child meet tuition requirements.

Funding Your Student’s Education and Future

Filling out the FAFSA is a complex task, but it’s an important part of the financial aid process. Learning how you can help your child complete theirs correctly could save you thousands. Luckily, your Farm Bureau agent or financial advisor can help with smart budgeting tools and information on tax-advantaged college savings plans to help prepare your family for college.