What is FAFSA? How do US Students Get Financial Aid?

The Free Application for Federal Student Aid (FAFSA) is crucial for US students seeking financial assistance for higher education. It helps determine eligibility for federal grants, loans, and work-study programs based on a family's financial situation. Completing this free form is the essential first step to receive aid packages covering tuition, fees, and living costs from the government and colleges. 

Jun 16, 2025, 04:01 EDT
What is FAFSA?
What is FAFSA?

College costs in the U.S. can be high, but the Free Application for Federal Student Aid (FAFSA) assists millions annually. FAFSA is a crucial form students complete to determine their eligibility for various financial help, including federal grants, which is money you don't repay, loans, money you borrow and repay, and work-study programs, earning money through campus jobs. Based on a family's financial situation, the government and colleges offer aid packages to cover tuition, fees, and living costs. Completing FAFSA is the free and most important first step for U.S. students seeking financial assistance for higher education.

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What is FAFSA?

The Free Application for Federal Student Aid (FAFSA) is an official form the U.S. government uses to figure out how much money a student needs for college and what kind of federal help they can get. This form is the main way students can access financial aid for higher education. This includes grants (money you don't have to pay back), low-interest loans, money you borrow and repay later, and work-study opportunities where you earn money by working a job on campus.

To do this, the FAFSA form gathers detailed information about a student's and their family's income, what they own, and other money matters. The information from FAFSA is then shared with the colleges a student lists on the form. This allows each college to create a personalized financial aid package for that student. It's important to remember that FAFSA is free to submit, and you need to complete it every academic year you want financial help for college.

How do American students get financial assistance?

Here is a step-by-step breakdown:

  1. Fill FAFSA Form
  • Available here: https://studentaid.gov/
  • Students need to provide:
  • Social security number
  • Tax Return and Financial Information (Students and Parents)
  • List of colleges they are applying to

Tip: FAFSA opens every year on 1 October, and it is best to apply early to get maximum assistance. 

  1. Get Student Aid Report (SAR)
  • After presenting, the students receive SAR, which summarizes FAFSA data and gives the expected family contribution (EFC) or the new term student aid index (SAI).
  • Colleges use it to calculate how much a student qualifies for help.
  1. Colleges Send Financial Assistance Offers
  • Each college sends a student a support proposal/award letter, detailing:
  • How much will be assisted to the student (grant, loan, work-study)
  • Student/family will still need to cover
  1. Accept financial assistance
  • Students can accept all or part of the proposed assistance.
  • Grants are usually accepted automatically.
  • The loan should be actively accepted (and it can be reduced or rejected).

Paying for college in the United States can be challenging, but the free application for federal student aid (FAFSA) helps to make higher education more affordable for millions of students each year. FAFSA is a form that students fill out to determine their eligibility for various types of financial assistance, including federal grants, loans, and work-study programs. By assessing the financial condition of a family, the government and college can offer an aid package to help cover tuition, fees, and living expenses. Complete FAFSA U.S. In the first and most essential step in getting financial assistance for college, it is completely free.

Ayukta Zisha
Ayukta Zisha

Content Writer

    Ayukta Zisha is a Content Writer and Published Author with a Master’s degree in English Literature. She also holds a certification in Digital Marketing from IIT Delhi. Deeply passionate about art, aesthetics, and literature, Ayukta brings a unique creative flair to her writing. A dedicated bibliophile, she continues to explore and share her love for words through engaging and insightful content. You can reach out to her at ayukta.zisha@jagrannewmedia.com

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