It’s a common misconception among families that if their income is too high, their child is automatically disqualified from receiving any type of financial aid through the FAFSA (Free Application for Federal Student Aid).
Some families might opt to skip completing this application entirely, which can cost them financially. Since the FAFSA doesn’t have an income limit, it’s always worthwhile to complete this essential application.
When determining a student’s financial aid needs, several factors are taken into consideration—it’s not just about how much money a family makes. You can still qualify for financial aid even if you think your total income is too high.
Since the FAFSA is free, it’s easy for families to complete. Once you’ve gathered your information, simply submit your application to find out if you qualify for financial aid. Here’s what you need to know.
How FAFSA Determines Financial Aid Eligibility
The federal government uses the FAFSA to determine a student’s financial aid needs. Colleges and states also rely on the FAFSA for this information. After submitting the FAFSA, a Student Aid Index (SAI) is calculated. This was previously called the Expected Family Contribution (EFC).
In short, this number determines a student’s financial aid eligibility. To calculate this number, the Cost of Attendance (COA) is first determined. From there, the Student Aid Index (SAI) is deducted. The result is a student’s financial need.
When determining the Cost of Attendance (COA), you need to include room and board, tuition, books, fees, and any other expenses related to college. Even with a high SAI, there’s still a chance you’ll qualify for different types of financial aid. This all depends on a college’s cost and its financial aid policies.
Why High Income Doesn’t Automatically Disqualify You
As mentioned, multiple factors influence financial aid eligibility. These include family size, the number of children in college, the school of choice, and any unusual financial circumstances that might play a role.
For example, larger families with more dependents may be eligible for more financial aid than previously thought. Additionally, the total number of children a family has in college simultaneously can impact financial aid. Unusual financial circumstances—such as job loss or major expenses like medical bills—may also affect whether a student receives financial aid.
The school of choice plays a role as well. Some expensive private schools may offer financial aid, even for families with high incomes. FAFSA considers all of this information when making its decision, which is why all students are encouraged to apply—you never know what you’ll qualify for.
What Aid Can Higher-Income Families Receive?
Even if you don’t qualify for need-based financial aid, applying for the FAFSA can still help you receive other types of financial assistance. Consider the following:
Federal Student Loans
To qualify for federal student loans, you must complete the FAFSA. These loans typically have lower, fixed interest rates. They also tend to be more flexible in repayment and may offer loan forgiveness programs, depending on your career path.
Students Can Take Out Direct Unsubsidized Loans
High-income families can qualify for Direct Unsubsidized Loans since they don’t require financial need. Parents also have the option of taking out Parent PLUS Loans, which allow them to borrow the full cost of college—providing a path to pay for higher education.
Consider Merit-Based Scholarships
By completing the FAFSA, you may also qualify for merit-based scholarships. These scholarships are awarded for leadership, academic achievements, or other accomplishments. This means you can find ways to pay for college without relying on financial need. Many schools require the FAFSA to be considered for merit-based scholarships, so don’t delay in completing your application.
What About State and Institutional Aid?
Depending on the state or university, you may be offered grants or scholarships. These awards take various factors into consideration—not just income. However, you typically need to complete the FAFSA to qualify, so don’t risk losing out on free money.
Do You Need the FAFSA for Federal Work-Study Programs?
Yes. To be considered for Federal Work-Study Programs, you must complete the FAFSA. This program offers students part-time jobs to help pay for tuition, room and board, books, or other expenses.
Although this program is typically based on financial need, some schools may be flexible in awarding these positions. Complete the FAFSA and see if you qualify.
Special Financial Circumstances: High Income but High Expenses
Your income might look high on paper, but due to special financial circumstances, you may still need help paying for college. In these cases, you can file an appeal with your college’s financial aid office.
Some examples of special financial circumstances include job loss or a reduction in pay after filing the FAFSA. If high medical expenses are affecting your ability to pay for college, you may want to appeal.
Additionally, if you care for an elderly or disabled family member, you may qualify. Large income events—such as selling a home or receiving an inheritance—may also justify an appeal.
Keep in mind that each college uses discretion when adjusting financial aid packages, so you never know what decision they may arrive at regarding your financial aid.
Should You Fill Out the FAFSA? Absolutely!
If you’re unsure whether you should complete the FAFSA, don’t hesitate—submit this essential application. It’s free and only costs you your time.
Even if you think your income is too high to qualify for financial aid, there are still other ways to secure funding for college. From merit-based scholarships to Federal Work-Study Programs and various loan options, applying for the FAFSA is always a worthwhile investment in your future.
If this all seems overwhelming, College Funding Professionals is here to help. We offer assistance with planning for college and can answer any questions about your FAFSA application and financial aid options. Join our free online Facebook group to learn more about our unparalleled college planning advice.
If you’d like to speak with someone from our dedicated team, call us at 201-285-7890 or email us at info@collegefunding.com.
