Filling Out the FAFSA: Your Guide

by | Oct 12, 2022

Parents and students can start to fill out the federal government’s Free Application for Federal Student Aid (FAFSA) and the College Board’s CSS/Profile form on October 1. Colleges award financial aid and scholarships based on the information parents and students put into these forms, so students and parents must fill them out.

This piece focuses on what you need to know about filling out the FAFSA. For information on filling out the CSS/Profile, please read the companion piece.

According to research by the National Council on Education Statistics, an estimated 35% of students don’t fill out the FAFSA every year. The most common reasons why are that students (and parents) believe, incorrectly in many cases, that:

  • They can afford college without financial aid.
  • They’re ineligible or may not qualify for financial assistance.
  • They’re reluctant to take on debt.
  • They lack information about how to complete a FAFSA.

The reality? College is costly, so getting assistance matters. Some colleges cost as much as $280,000 for a four-year degree. The average student pays between $80,000 and $120,000 for their college education. And many students will qualify for some assistance, so you must fill out these forms. Here’s what you need to know.

Some people do decide not to apply for financial aid at certain colleges. At need-blind colleges, that decision makes no difference to the admission decision. At need-aware colleges, not asking for financial aid can improve your chances of admission, although of course, it means you’re giving up on need-based financial aid and possibly merit-based aid as well. A general list of colleges that are need-blind is at this link, but please check with individual institutions to verify their policy.

Maximizing Financial Aid: Filling Out the FAFSA

LifeLaunchr’s webinar on maximizing your financial aid is a great resource before you fill out the FAFSA. It will explain how the financial aid system works and how you can maximize your aid legally by filling out the form correctly. Watch it at this link.

What’s New in 2022

The 2022 FAFSA (for students attending college in the 2023-24 academic year) involves several changes:

  • Drug convictions and registration for selective service (the draft) no longer affect eligibility for federal student aid.
  • A summary of changes for the 2023-24 academic year is posted online at this link.

FAFSA Screen Snapshots

The government has a good presentation that walks through the FAFSA screen by screen. You can view it below.

Determining your Expected Family Contribution

The purpose of filling out the FAFSA is to determine a family’s Expected Family Contribution (EFC), which is a number that measures (often, very inaccurately) how much money your family can afford for education.

Start by Getting FSA IDs for both Student and Parents

A Federal Student Aid (FSA) ID is a one-time username and password. Both the student and the parent need an FSA ID to connect their FAFSA to their social security number and taxes. Getting one is easy, so do it right away. You can do it at this link, and instructions are at this link on the Department of Education’s website.

Get Your Tax Returns and Financial Records Ready

Both the FAFSA and the CSS/Profile use the “prior-prior” year’s tax returns. That means that to fill out the FAFSA for the academic year 2022-23, you need the parents’ and student’s tax returns for 2020. If you don’t have this return filed yet, you can estimate your income and amend the FAFSA when you have it. The FAFSA makes it relatively easy to pull this information directly from the IRS. Doing that makes it much less likely your FAFSA will be flagged for verification by colleges.

Other Financial Records

  • Student and parent social security numbers. You might ask, what if you don’t both have them? The answer varies, and here are some helpful links:
    • International (noncitizen) students, including permanent residents, refugees, asylum-seekers, DACA recipients, and others: Click here.
    • Students whose parents are undocumented: Remember, only the student’s immigration status or citizenship determines aid eligibility, so the parent’s citizenship status isn’t relevant. The FAFSA doesn’t ask about the parent’s immigration status (NOTE: According to the American Civil Liberties Union of Northern Californa, there is still “some risk” in providing undocumented parent information on the FAFSA, because although “immigration enforcement authorities have never requested student FAFSA information in the past, … that could change in the future.”): Click here for the Department of Education’s guidance.
    • Parents without social security numbers should enter “000-00-0000” in the field that asks for it.
    • Americans without Social Security Numbers: You should apply for an SSN early so that you can have one in time.
  • Records of untaxed income you received, such as child support you received, and of income you can exclude, such as combat pay, taxable scholarships, and child support you paid.
  • Asset Information, such as bank and investment account balances, your home’s value, and business assets. It would be best if you valued these as of the date you file the FAFSA. Print and keep the records based on which you entered the data, in case you have to verify them.

Filling out the FAFSA

To fill out the FAFSA, visit https://studentaid.ed.gov/sa/fafsa and follow the instructions. It’s relatively easy for most people. The FAFSA for 2021-22 opens on October 1, 2020.

You can also walk through a demo with test data at this link.

Please note:

  • You can only add ten universities to the FAFSA at one time. To send your FAFSA to more colleges, submit the FAFSA with ten colleges, then wait a few days for a confirmation email. You can then edit the FAFSA to remove the first ten colleges and add the others and resubmit it.
  • For college systems like the University of California, California State University, or the University of Texas systems, please send the FAFSA individually to each college that you’re applying to.

Special Situations

There are a variety of special situations that make the process more complex:

  • Divorced or separated parents: It doesn’t matter for the FAFSA whether parents are divorced, legally separated, or informally separated. Parents’ marital status for the FAFSA depends on whether they have “chosen to live separate lives, including living in separate households, as though they were not married.” Click here for more information.
  • Other circumstances relating to parental information, such as same-sex parents or parents who refuse to provide information: Click here for details.
  • Low-income students or families who qualify for specific federal programs such as Medicaid or Free/Reduced School Lunches, or where one parent is a “dislocated worker” or “displaced homemaker:” In some cases, this can result in an automatic zero EFC. In other situations, the government will disregard asset information in calculating the EFC (this is known as the “simplified needs test” ): Click here for more details.

Sheltering Assets to Minimize EFC

You don’t have to report all assets on the FAFSA. So some families with significant investments can use strategies to shelter assets. For example, you don’t have to report:

  • Small-business assets and the value of equity in a small business owned by a parent
  • The value of your primary home
  • The value of retirement accounts

So for some families, it can be beneficial to move assets into a business, farm, or bigger home and then borrow against that asset to pay for college.

How Your Financial Aid is Determined

Federal Financial Aid: The FAFSA determines eligibility for Federal Aid programs such as the Pell Grant, Federal Work-Study, and Subsidized Loans. Each year, the Department of Education awards about $150 billion in aid to students. It also determines eligibility for programs such as veterans’ or servicemembers’ benefits.

State Grants: Many states also offer residents financial aid through programs such as California’s CalGrant program. Qualifying for many of these programs requires you to file a FAFSA.

College Financial Aid: The FAFSA doesn’t determine how much additional financial aid any college will offer you. Each college makes that determination on its own, using different criteria. To understand what assistance you might receive, fill out the college’s net price calculator, which you can find on most college websites. Remember, many colleges require you to fill out the FAFSA even to consider you for merit scholarships.

Some colleges require you to fill out the CSS/Profile. For those colleges, read the companion piece to this one on LifeLaunchr’s blog.


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Venkates Swaminathan

Venkates Swaminathan

Venkates Swaminathan (Swami) is the founder and CEO of LifeLaunchr, the world's first virtual college admissions coaching platform, and a member of the National Association for College Admission Counseling. Swami has been an executive in the education and technology industries for over 25 years. He has an M.S. in Electrical and Computer Engineering from the University of Illinois, and a B.Tech in Electrical Engineering from the Indian Institute of Technology Delhi. He is the father of a child in college, and in his spare time, he is a jazz and Indian classical singer and pianist.

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