What is the FAFSA? Definitions, dates, and directions

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If you’re applying to colleges or currently enrolled, you might be eligible for tens of thousands of dollars of free financial aid to help you afford college. To find out how much your aid offer could be, you’ll need to fill out the FAFSA first.

Here’s what you need to know to maximize the free federal financial aid you can get for the next school year.

What is the FAFSA?

Also called the Free Application for Federal Student Aid, the FAFSA form is the only way to apply for need-based financial aid from the U.S. Department of Education. It’s free to fill out and anyone who’s a U.S. citizen or an eligible noncitizen to apply.

If you’re an independent student, you’ll only need your own financial information. If you’re a dependent student, however, you’ll need your parents’ or guardians’ help to fill in their tax information.

The FAFSA determines your Student Aid Index, or SAI, which helps colleges understand your overall financial need. SAI is the current method used by the federal government to assess your financial need for college, replacing the older Expected Family Contribution (EFC).

When is the FAFSA deadline?

Technically speaking, you can submit the FAFSA at any point in the academic year. The federal deadline for the FAFSA for the 2026-2027 academic year is June 30, 2027. That said, it’s always best to fill it out as soon as possible because some need-based aid is offered on a first-come, first-served basis.

For the 2026-2027 school year, the FAFSA opens on October 1, 2025. The FAFSA now includes expanded eligibility for financial aid and a streamlined application process, making it easier for more families to access support.

Read More: How to fill out the FAFSA: A guide for students and parents

How does financial aid work?

Financial aid bridges the gap between what your family can afford to pay and what your university costs. If you come from a low-income family, you may be eligible for more federal grants, such as the Pell Grant. These funds don’t have to be paid back.

Financial aid can also include merit scholarships offered by your institution, which are granted regardless of need. Some colleges are also able to offer free, need-based aid that doesn’t need to be paid back and isn’t associated with federal grants.

You may also be eligible for federal work-study programs, which help students pay for college by providing on-campus jobs that pay hourly wages. Beginning in 2024, work-study programs received additional federal funding, making these opportunities more widely available to students with financial need.

The only type of financial aid that needs to be repaid is student loans. Virtually everyone who fills out the FAFSA is eligible for federal student loans, regardless of their credit history (with some exceptions for certain loans for graduate and professional students). You can also get private student loans from other banks and lenders, such as Earnest¹.

If you have questions about what types of aid you’re eligible for, you can always call the financial aid office at your university. In fact, you should probably do this even if you think you have a handle on it all, there may be a chance they have some obscure, highly specific scholarship you didn’t realize you’re eligible for.

How to fill out the FAFSA step-by-step

The first step to filling out the FAFSA is creating an account at StudentAid.gov. This is called your Federal Student Aid (FSA) ID, and you’ll need it to log in to the website and pull up the form.

You’ll also need:

• Your social security number (and your parents’, if you’re a dependent), or your Alien Registration Number, if you’re not a U.S. citizen

• Your driver’s license number, if you have one

• Your tax returns (and your parents’, if you’re a dependent)

• Your FSA ID, to log into the site

Once you bring up the form, you’ll have to answer some questions about your personal information, then list the schools you want to send your FAFSA information to. You do not need to have been accepted by these institutions in order to send them your details. You don’t even need to have sent in your application. You should list every school you’re considering. You can add up to 10 schools at a time.

Then, you’ll fill out information about your finances and your parents’ (if relevant), and sign and submit the form.

Afterward, you’ll get a Student Aid Report, also called a SAR, which details all the information you’ve submitted.

Read More: Here’s What to Do if You Have Problems with the FAFSA

How to pay for college if you don’t get enough financial aid

If your financial aid package isn’t what you’d hoped for, there are other ways to pay for college. Here are a few of the most reliable.

Scholarships

Scholarships are financial awards offered to students based on various criteria, including academic achievements, community involvement, talents, and demographics. They’re essentially free money for college because they don’t need to be repaid, making them the best form of funding for college education.

That said, they’re highly competitive and usually based on merit, meaning they’re awarded based on a student’s achievements or qualities rather than their financial need. There are all types of scholarships out there, and you don’t necessarily need to be a great student or a star athlete to win them.

Scholarships can come from a variety of sources. Private organizations, corporations, foundations, and even colleges all offer scholarships. These funds can be used to cover various college expenses, such as tuition, fees, books, and even living expenses in some cases. You can use tools such as Fastweb to find the right scholarships for you. 

Federal student loans

Federal student loans are loans provided by the U.S. Department of Education to help pay for education expenses. Though these loans are included in your financial aid package, they’re not gift aid. You will have to pay them back. Generally, there are four types of federal student loans available.

• Direct Subsidized Loans: These loans are available to undergraduate students with financial need. The U.S. Department of Education pays the interest on the loan while the student is in school, for the first six months after graduation (grace period), and during specific deferment periods.

• Direct Unsubsidized Loans: These loans are available to undergraduate and graduate students. Unlike subsidized loans, interest begins accruing as soon as the loan is disbursed, and students are responsible for paying the interest.

• Direct PLUS Loans: These loans are available to graduate or professional degree students and also to parents of dependent undergraduate students. PLUS loans require a credit check, and interest begins accruing immediately after disbursement.

• Direct Consolidation Loans: These loans are available to borrowers with multiple loans who want to consolidate them into one. Through student loan consolidation, you can simplify your monthly payment and choose a new repayment term. A longer repayment term can lower your monthly payments (though you’ll pay more in interest over the life of the loan), while a shorter repayment term can help you pay off your loans faster with less interest (though your monthly payments will be higher).

Read More: What are the Differences Between Subsidized and Unsubsidized Student Loans?

It is important to keep in mind that the eligibility criteria, interest rates, and repayment terms for federal student loans can vary depending on the loan type, individual circumstances, and even the year you take them out.

One advantage of federal student loans over private loans¹ is that they offer more flexible repayment options, including income-driven repayment plans², deferment, forbearance, and loan forgiveness programs.

They’re also generally better for people with average or below-average credit. Only the most creditworthy individuals are eligible for the best rates on private student loans, while federal student loans offer the same rate to everyone no matter their credit.

Private student loans

In an ideal world, your financial aid package would cover the full cost of attendance. However, this rarely happens. Private student loans are what students turn to when scholarships, grants, work-study, and federal student loans can’t cover the cost of college.

Private student loans are educational loans that are provided by private financial institutions like banks, credit unions, or online lenders. They’re used to cover expenses like tuition, fees, books, and other costs of higher education.

Here are some benefits of private student loans:

• Higher loan limits: For creditworthy individuals, private student loans typically offer higher borrowing limits compared to federal student loans.

• Competitive interest rates: Since federal student loans don’t require a credit check, they don’t reward borrowers with great credit. If you or your cosigner has great credit, you may be able to access lower rates than you could with the federal government.

• Not based on financial need: Private student loans are not based on financial need, so no matter your financial background, you can get the money you need for school as long as you have good credit or a creditworthy cosigner.

• Faster approval process: Private student loans generally have a faster application and approval process compared to federal loans. This can be advantageous for students who need quick access to funds to pay for their education.

It’s important to know that private student loans may not offer the same borrower protections and benefits as federal student loans. Carefully review the terms and conditions, including interest rates, repayment plans, and protections before taking out a private student loan.

Learn more about Earnest private student loans

Filling out the FAFSA can help you access free money that reduces the total cost of your education. But it may not provide you with grants to cover all the money you need. If financial aid and federal loans don’t cover your full cost of education, consider an Earnest private student loan.

With low rates, flexible repayment options, and a grace period three months³ longer than average, Earnest can help you afford higher education on your own terms. Check your rate today. It’s fast, free, and won’t affect your credit score.

Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

1 Before applying for private student loans, it’s best to maximize your other sources of financial aid first.  It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grants, and work-study opportunities.  2) Next, fill out a FAFSA(R) form to apply for federal student loans.  Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if you're struggling with your payments.  3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2.  For more information, visit the Department of Education website at https://studentaid.gov/.

2 As a result of ongoing court actions, the terms of some Income-Driven Repayment (IDR) plans, including the SAVE plan, may be subject to change. Please refer to studentaid.gov for the current status of these plans.

3 Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.