Learn how to Prepare for the FAFSA (2024)

FAQs

Learn how to Prepare for the FAFSA? ›

You and your contributors should have your tax returns on hand when you fill out the FAFSA form. Even though your tax information will be transferred directly into the FAFSA form, you may still need your tax records to answer certain questions. Make sure you report 2022 income on the 2024–25 FAFSA form.

You and your contributors should have your tax returns on hand when you fill out the FAFSA form. Even though your tax information will be transferred directly into the FAFSA form, you may still need your tax records to answer certain questions. Make sure you report 2022 income on the 2024–25 FAFSA form.

Complete the FAFSA early

Since several schools now award aid money on a first-come, first-served basis – until funds are depleted – it's recommended that you file as early as possible. Many families file their taxes first and use them as easy references while completing the FAFSA.

What income is too high for FAFSA? There is no income that is too high to file a FAFSA. No matter how much you make, you can always submit a FAFSA. Eligibility for need-based financial aid increases as the cost of attendance increases, so even a wealthy student might qualify for financial aid at a higher-cost college.

Cars, computers, furniture, books, boats, appliances, clothing, and other personal property are not reported as assets on the FAFSA. Home maintenance expenses are also not reported as assets on the FAFSA, since the net worth of the family's principal place of residence is not reported as an asset.

There is no set income limit for eligibility to qualify for financial aid through. You'll need to fill out the FAFSA every year to see what you qualify for at your college. It's important to make sure you fill out the FAFSA as quickly as possible once it opens for the following school year.

Applying for financial aid could negatively affect admissions chances. If a student is on the cusp of admissibility, not applying for financial aid will classify the student as “full pay,” which can advantage them over another who would be eligible for need-based aid.

Nearly all students who apply qualify for some form of federal financial aid. "It's very easy to qualify for aid based on the FAFSA," Barnett says. For years, filling out the FAFSA was a confusing, complex process for families. However, the FAFSA was streamlined for the 2024-2025 award year.

What is a good FAFSA amount? ›

The FAFSA formula doesn't expect students or families to use all of their adjusted available income to pay for college. The formula allocates 50 percent of a dependent student's adjusted available income to cover college expenses and anywhere from 22 to 47 percent of parents' available income.

Unless otherwise noted, “parent” means your legal (biological and/or adoptive) parent or your stepparent. In addition, the rules below apply to your legal parents regardless of their gender. If your parents are living and legally married to each other, answer the questions about both of them.

The FAFSA formula assesses relevant parent assets at a maximum of 5.64%. The federal formula assesses child assets, which would include all custodial accounts as well as a child's own savings/checking, at 20%.

There is no income cut-off to qualify for federal student aid. Many factors—such as the size of your family and your year in school—are considered.