Before receiving financial aid, students must fill out the FAFSA. This application works to determine what loans and grants — and how much — students qualify for. One important question is how much money students receive from the FAFSA, along with who completes it.
This article has everything you need to know about FAFSA funds and receiving them.
Who Completes The FAFSA — Students or Parents?
The FAFSA is in the student’s name since they’re the ones benefitting from financial aid funds. However, this usually involves both the student and the parents/guardians to complete the FAFSA in tandem, as both their information is required.
Every year a student attends college, the FAFSA must be completed. Students and parents need to provide:
- Social Security numbers
- Any tax-deferred retirement funds
- Income
- Bank account information
- Investment information
- Real estate investment information (separate from the application’s primary residence)
If the parents/guardians own a business, this information is also required.
Once this information is gathered, the FAFSA can be completed and financial eligibility can be awarded. Just remember to complete the FAFSA on time.
What’s The Most Money FAFSA Will Award You?
Once the FAFSA is completed, federal financial aid eligibility is determined. The student’s prospective schools will then use this information to extend an offer for financial aid, informing them of what they qualify for. There are several different ways students qualify for financial aid.
This includes:
- Grants
- Federal Student Loans
- Work-Study Finds
The type of financial aid a student qualifies for determines the maximum amount they’ll receive.
Direct Subsidized Loans
Undergraduate students who qualify for Direct Subsidized Loans receive between $3,500 and $5,500 every year. Their year in school determines the exact amount they’ll need. The maximum allowed for this type of loan is $23,000 in total.
Direct Unsubsidized Loans
Direct Unsubsidized Loans pay more than Direct Subsidized Loans. Every year, undergraduate students can qualify for $5,500 to $7,500 while graduate students qualify for as much as $20,500 annually. The year in school plays a role in how much they qualify for.
The total a student can qualify for is between $31,000 and $138,500. Dependency status and where a student is in school factor into how much financial aid they qualify for, but all undergraduate and graduate students qualify for these loans.
Grant PLUS Loans
Graduate and professional students can access Grant PLUS Loans. This loan can be as much as the school’s tuition, less any other financial aid the student qualifies for.
Parent PLUS Loans
Parent PLUS Loans can cover the complete cost of attending school, subtracting any other available financial aid awarded to the student. Since this is a loan for parents, biological and adoptive parents qualify, and, in some cases, step-parents. Students must be dependent undergraduates.
Federal Pell Grant
Currently, the Federal Pell Grant is capped at $7,395 per year. Undergraduate students can receive these grants if they have significant financial needs. They can’t have earned any of the following degrees to qualify:
- Bachelor’s
- Graduate
- Professional Degree
Since Federal Pell Grants aren’t loans, students don’t have to repay them.
Federal Work-Study
Federal Work-Study varies from school to school, taking into consideration the funds they have available. Any undergraduate, graduate, and professional students with financial need requirements can qualify.
Teacher Education Assistance for College and Higher Education (TEACH) Grant
Any students enrolled in a TEACH grant-eligible school program can qualify, provided their GPA is at least 3.25 or they score above the 75th percentile on certain tests for college admissions. These grants offer a maximum of $4,000 annually.
Federal Supplemental Educational Opportunity Grant (FSEOG)
This grant is between $100 and $4,000 annually. The amount a student receives depends on eligibility, but these grants are reserved for students with substantial financial need.
Iraq and Afghanistan Service Grant
Students with a parent who died in military service in Afghanistan or Iraq following 9/11 qualify, provided they were younger than 24 years of age or in college when their parent passed away due to military service. These students can’t receive Pell Grants. The current rate for this loan is $7,935, not to exceed their school’s cost to attend.
Federal Scholarships
Students can also apply for federal scholarships. The amount awarded and who qualifies varies on the scholarship.
How To Get The Most Financial Aid Possible
One of the best ways to secure the most financial aid possible is to fill out the FAFSA early. Since the FAFSA is an absolute must in obtaining federal financial aid, completing the application as soon as possible is the best way to secure funds. Some financial awards are limited, which means funds are given out to those who apply first, so make completing the FAFSA a priority.
Additionally, students might find their FAFSA application needs corrections, and completing it as soon as possible allows them to quickly make these changes.
If possible, avoid FAFSA mistakes to ensure the most financial aid is awarded. When the required information isn’t reported or some prospective colleges are left off the form, it can affect when and how students receive financial aid.
Most importantly, don’t forget to sign the FAFSA form.
It’s also important to maximize taxable income, so keep student assets as low as possible. This means that college funds are best kept in the parents’/guardians’ names instead of the students’.
Private student loans can bridge any gaps in financial aid, covering the cost of tuition if needed.
Receive the Most FAFSA Funds Today
The amount of financial aid a student can receive from FAFSA depends on several factors. This includes their specific financial need, what year they are in college, and the type of loan or grant they qualify for. Completing the FAFSA as early and accurately as possible ensures students receive maximum funds for college.
If the college application process — and obtaining financial aid — seems daunting, College Funding Professionals is here to help. Our dedicated staff is ready to answer all your college application questions, from completing the FAFSA to applying for student loans, and everything in between.
Join our free online Facebook Group to gain access to the best college planning advice anywhere. You can also call us at 201-285-7890 or email us at info@collegefunding.com.
