Should You Complete the FAFSA?

9/9/2026

College costs continue to rise, making financial aid an important part of the planning process for many families. Yet many parents and students aren't sure how financial aid works, what information schools consider or what opportunities may be available to them. The FAFSA is often the first step. Here are answers to some common questions about the application and how it can help you evaluate your college funding options.

“Why Should I Complete the FAFSA?”

Completing the FAFSA is one of the simplest ways to keep your college funding options open. The application serves as the starting point for many forms of financial assistance, including federal aid, state programs and aid offered directly by colleges and universities. Because each school uses FAFSA information differently, filing can help ensure you're considered for all available funding opportunities.

Even if you don't expect to qualify for need-based aid, completing the FAFSA can still be worthwhile. Eligibility for all types of financial aid is based on more than income alone and may be influenced by factors such as your family's financial circumstances and household size. The application is free to complete, so there is little downside to filing and gaining a clearer understanding of the resources that may be available to help cover college costs.

Did You Know?

The price a college advertises is often not the amount you ultimately pay. Grants, scholarships and other forms of financial aid can significantly reduce out-of-pocket costs, making the FAFSA an important first step in understanding what your actual college expenses may be.

“What Financial Aid Can I Qualify For Through the FAFSA?”

Completing the FAFSA can help students access a variety of financial aid resources, including grants that may lower college costs without requiring repayment, work-study programs that allow students to earn income while enrolled and federal student loans that can help fill funding gaps. Many colleges also use FAFSA information when determining eligibility for their own institutional grants, scholarships and other forms of assistance, making the application an important gateway to accessing the full range of financial support that may be available

Did You Know?

The same FAFSA information can result in very different financial aid packages from different colleges, so comparing each school's total aid offer can be just as important as comparing its published tuition and fees.

“How Does FAFSA Evaluate My Finances?”

The FAFSA uses information about your income and assets to calculate a Student Aid Index (SAI), which colleges use to assess your family's ability to contribute toward college expenses. Each school then compares your SAI to its cost of attendance and determines the financial aid package it may offer.

Not all assets are treated the same in the FAFSA formula. While both parent and student assets are considered, assets owned by the student are assessed at a higher rate, which can have a greater impact on financial aid eligibility. Because the FAFSA must be completed each year, financial aid eligibility may change over time as your financial situation evolves, including as college savings are spent down. Note also that personal debt is generally not considered when determining the SAI. Understanding how assets are owned and used can help families evaluate potential planning opportunities before filing the FAFSA.

Did You Know?

The type of account holding college savings can affect financial aid eligibility. Assets in parent-owned and grandparent-owned 529 plans may be treated differently under FAFSA rules, which can impact the amount of aid a student may qualify to receive. Custodial accounts may also be treated differently, particularly when ownership transfers to the student upon reaching the age of majority.

“How Can I Make the Most of the FAFSA Process?”

The FAFSA process begins well before college applications are submitted. For many students, financial aid eligibility is based on income and asset information from the tax year beginning January 1 of their sophomore year of high school, meaning financial decisions made several years before college enrollment can influence aid outcomes. Starting early gives families more time to understand how income, savings and other financial factors may affect eligibility and to build a more informed college funding strategy.

When it's time to apply, gather documents such as tax returns, W-2’s and current account balances ahead of time, and file as soon as the FAFSA becomes available. You can complete the application at studentaid.gov, and both you and your child will need to complete your respective portions of the FAFSA to finalize the application.

Did You Know?

Some colleges and states award aid on a first-come, first-served basis, and certain grants may only be available until funding is exhausted. Applying as soon as the FAFSA becomes available can help ensure you're considered for the widest range of funding opportunities.

Completing the FAFSA is about more than checking a box on a college to-do list. It's an opportunity to better understand the resources available to your family and make informed decisions about how you'll fund a college education. Because financial aid eligibility is influenced by a variety of factors, planning ahead can help you evaluate your options and avoid surprises when the time comes to apply.

If you have questions about how college funding fits into your broader financial picture, our team can help you explore strategies and planning opportunities that align with your family's goals.