FAFSA Tips: 10 Ways to Increase Your Financial Aid Eligibility

Increase Your Financial Aid Eligibility

BIG Ideas:

  • Submitting the FAFSA early can boost your chances of receiving financial aid.
  • Understanding how income, assets, and your dependency status affect your application can help you get more money from FAFSA.
  • Missing or incorrect information can delay processing of the FAFSA and keep you from getting the aid you need.

We can all use a little help every now and then. If you’re a parent or student looking to afford the high cost of college, financial aid from the federal government can be a game-changer in helping you manage college costs.

It won’t just come to you, though.

To qualify for federal aid, you must complete the Free Application for Federal Student Aid or FAFSA. The FAFSA is basically an application that the federal government, states, and many colleges use to determine your eligibility for financial aid. Aid that comes in the form of:

  • Federal grants – money you generally don’t have to pay back
  • Federal student loans – loans that offer lower interest rates and built-in protections
  • Federal Work-Study – a program that allows you to work while attending school

Sound good? Now, let’s delve into a little more info about the FAFSA.

How to Maximize Financial Aid With the FAFSA

The information you provide on the FAFSA is used to determine your Student Aid Index (SAI), which is a formula-based index that helps your school determine how much financial support you may need. The lower your SAI, the more financial aid you’ll be eligible to receive.

Understanding how the FAFSA and your SAI impact eligibility can help you avoid mistakes that can limit financial aid. That’s important because financial aid can reduce your out-of-pocket expenses tremendously.

Here are 10 tips to help you maximize financial aid and learn how to get more money from FAFSA:

1. Apply early. There is a deadline for completing the FAFSA, but that doesn’t mean you should wait until then. The reason? Many states and schools award aid on a first-come, first-served basis. So, submitting your FAFSA as soon as it opens for your school year will give you a better chance of getting financial aid. Don’t wait; applying early is one of the easiest ways to learn how to maximize financial aid.

2. Provide complete and accurate information. Have documents ready, such as Social Security numbers, tax returns, W-2s, and asset records. Also, be sure to check your FAFSA for errors or missing information. According to the National Association of Student Financial Aid Administrators (NASFAA), common mistakes people make when completing the FAFSA include:

    • Leaving fields blank can impact calculations and lead to application rejection
    • Using commas or decimal points in numeric fields
    • Entering incorrect Social Security and license numbers
    • Failing to use legal names
    • Entering temporary addresses instead of permanent ones.
    • Entering the wrong federal tax amount paid

You can avoid these mistakes by carefully reviewing your FAFSA before you submit it. It only takes a few minutes to double-check your information so that you avoid processing delays that could impact eligibility. If you do encounter an error or missing information, or if you want to change other information, such as the schools listed, you can edit your FAFSA after submitting.

3. Track the status of your FAFSA. If you complete the FAFSA online, you will be required to create an FSA ID, which is a username and password that you will use on the StudentAid.gov website. After you submit your FAFSA, you can view your Submission Summary. It will tell you the status of your application, including the status of “Action Required,” which indicates more information is needed before your application can be processed.

Reviewing the Submission Summary can also help you spot and correct errors that could impact the amount of financial aid you could receive.

4. Know dependency rules. If you are considered a dependent student, your parent or parents must also provide financial information and sign the FAFSA. Whether or not you are a dependent student is determined by several factors, such as age, marital status, military service, and whether you have dependents of your own. Knowing how dependency status works can help ensure you prepare the FAFSA correctly and avoid delays that could impact how much financial aid you receive.

5. Don’t assume you won’t qualify. One of the most common mistakes parents and students make is thinking that they won’t qualify for financial aid because of income. The fact is, eligibility is based on other things, including family size, the number of students attending college at the same time, and certain financial circumstances. The only way to determine if you qualify is to complete and submit the FAFSA, which can help you learn how to maximize financial aid opportunities.

6. Use the IRS Direct Data Exchange when available. This tool securely transfers tax information directly into your FAFSA, which can reduce processing delays. It’s also an easy way to avoid entering incorrect financial data, helping boost your chances of maximizing financial aid.

7. Understand how assets affect aid. Student assets are assessed at a higher rate than parent assets. Assets that typically do not count include retirement accounts, primary home equity, life insurance cash value, and personal belongings. Knowing which assets are considered and excluded can help you better report the right financial information and learn how to maximize financial aid.

8. Understand how income affects aid. FAFSA eligibility is largely based on income from a prior tax year. Higher reported income can reduce aid eligibility, while lower income may increase it. Because prior-year tax data is used, you can financially plan to maximize eligibility. Always follow tax laws and consult a financial or tax professional before making financial decisions.

9. Search for outside scholarships. Aid is not limited to federal or school sources. Community organizations, employers, nonprofits, and foundations often offer scholarships that can help lower costs. At Brazos, for example, we offer several scholarships that can help reduce the gap where financial aid leaves off. Remember, scholarships don’t have to be repaid. That’s free money!

10. Appeal your aid offer if circumstances change. If your financial situation changes due to events such as job loss, reduced income, medical expenses, or family changes, you can request a professional judgment review from your school to see if you qualify for additional aid.

Brazos Can Help Make College Possible

For more than 40 years, Brazos has helped make college costs more affordable for students and parents paying for college. As a Texas non-profit lender, we offer competitive rates on private student loans that can bridge the gap where financial aid and savings leave off. Contact us to learn more.