Federal Student Aid (2024)

FAQs

Is federal student aid different from FAFSA? ›

Apply for federal student aid—grants, work-study, and loans—using the Free Application for Federal Student Aid (FAFSA^®) form. And remember, the first F in “FAFSA” stands for “free”—you shouldn't pay to fill out the FAFSA form!

Federal Student Aid offers three types of financial aid. Grants: Financial aid that generally doesn't have to be repaid. Loans: Borrowed money for college or career school; your loans must be repaid with interest.

What are the FAFSA income limits? A common myth is that students from high-income families won't qualify for FAFSA funding. In reality, there's no maximum income cap that determines your eligibility for aid. Although your earnings are a factor on the FAFSA, only some programs are based on need.

Eligibility Requirements. Our general eligibility requirements include that you have financial need for need-based aid, are a U.S. citizen or eligible noncitizen, and are enrolled in an eligible degree or certificate program at an eligible college or career/trade school.

FAFSA aid is calculated based on a number of factors. Broadly speaking, these include a student's Expected Family Contribution (EFC) and cost of attendance. A student's EFC is subtracted from their COA to determine the amount of need-based aid the student is eligible for.

A Federal Pell Grant, unlike a loan, does not have to be repaid, except under certain circ*mstances. To qualify for a Pell Grant, a student must demonstrate financial need through the Free Application for Federal Student Financial Aid (FAFSA^®) form.

It is not the financial aid itself. However, the FAFSA enables the student to qualify for many types of financial aid from several sources. Some of this money is free money, some must be earned through work, and some must be repaid. There are three main types of financial aid.

Subsidized loans

As mentioned, borrowers who qualify for subsidized Stafford loans must demonstrate financial need (which is shown when you file the FAFSA^®). These loans also have lower borrowing limits than their unsubsidized counterparts: students can borrow up to $5,500 a year, or $23,000 total.

Will I get financial aid if my parents make over 100k? ›

Don't worry, this is a common question for many students. The good news is that the Department of Education doesn't have an official income cutoff to qualify for federal financial aid. So, even if you think your parents' income is too high, it's still worth applying (plus, it's free to apply).

Incarceration, misdemeanors, arrests, and serious crimes could all affect a student's aid. Smaller offenses may not necessarily cut off a student from all aid, but they could limit the programs they qualify for as well as the amount of aid they could receive. Larger offenses could disqualify a student entirely.

Students selected for verification of their FAFSA form may wonder, “Does FAFSA check your bank accounts?” FAFSA does not directly view the student's or parent's bank accounts.

Financial Aid Cutoffs

There are no set income cutoffs for financial aid because of the number of factors that are included in the need-based calculation beyond income. Unless parents are in a situation where they don't need money for their child to go to school, everyone should fill out the FAFSA.

Pell Grants are grants awarded by the federal government to help students pay for college. While there is no specific income limit for a Pell Grant, students generally must demonstrate “exceptional financial need” to qualify.

This article applies only to the 2023–24 Free Application for Federal Student Aid (FAFSA^®) form. A Student Aid Report (SAR) is an electronic or paper document that summarizes the information you reported on your FAFSA^® form.

Unlike federal student loans, Pell Grants don't have to be paid back except under certain circ*mstances. Millions of Pell Grants are awarded each year to eligible undergraduate students who submit the Free Application for Federal Student Aid (FAFSA^®) form.