Fafsa: Determining Loan Eligibility And Your Financial Future

The Free Application for Federal Student Aid (FAFSA) is a form that students in the United States fill out to determine their eligibility for financial aid for college. The FAFSA is used to determine eligibility for need-based federal financial aid, including grants, scholarships, work-study programs, and loans. The application asks a series of questions about the student's and their family's financial situation to determine eligibility and the amount of financial aid. Students must meet certain eligibility criteria to qualify for federal student aid, including being a US citizen or eligible non-citizen, having a valid Social Security number, and being enrolled in an eligible degree or certificate program at a college or university that participates in federal student aid.

FAFSA requirements for eligibility

The Free Application for Federal Student Aid (FAFSA) is used to determine a student's eligibility for need-based federal financial aid for college, based on their financial situation. The FAFSA is not a loan or free money, but an application that determines eligibility for a federal loan, grant, or work-study program.

The primary purpose of the FAFSA is to determine how much financial aid a student qualifies for, including both need-based and non-need-based aid. It determines eligibility for federal need-based grants, including Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), and subsidized federal student loans, which are based on need. It also determines eligibility for non-need-based aid, such as unsubsidized federal loans, which most students qualify for regardless of financial need.

The general eligibility requirements to qualify for federal student aid include demonstrating financial need, being a U.S. citizen or eligible noncitizen, and being enrolled in an eligible degree or certificate program at a college or career school. Students must also maintain satisfactory academic progress while in school.

There are additional eligibility requirements specific to the type of aid being sought. For example, students with intellectual disabilities must be enrolled in a comprehensive transition and postsecondary (CTP) program and meet general student eligibility requirements. Undocumented students are currently not eligible for federal student aid, but the FAFSA may help them apply for state or school financial aid.

Criminal background and eligibility

A criminal background will indeed affect your eligibility for federal financial aid, but the impact will depend on the nature of the conviction and the type of aid being sought. The FAFSA (Free Application for Federal Student Aid) is the primary means by which students in the US determine their eligibility for financial aid, and it does ask about criminal convictions.

If you are incarcerated in a federal or state institution, your eligibility for federal student aid is limited. You are not eligible for federal Pell Grants or federal student loans, but once released, most of these limitations are removed. Limitations will remain for sexual offences and drug-related offences, but federal work-study programmes may be an option for receiving financial aid. If you have a conviction for a sexual offence, you cannot receive a federal Pell Grant. If your conviction is drug-related, you may be required to enter a government-recognised drug rehabilitation programme. If you are on probation or parole, you may be eligible for FAFSA, but eligibility will depend on the nature of your offence. Drug-related and sexual offences will likely limit your eligibility. You won't be eligible for a Federal Pell Grant or federal student loan if you are in a federal or state institution, but you may be eligible for a Federal Supplemental Educational Opportunity Grant (FSEOG). However, your odds of securing one are low.

It is important to note that eligibility for federal grants and loans also depends on financial qualifications. It is recommended that you fill out the FAFSA form to determine your eligibility, as your criminal background may not necessarily disqualify you from all federal financial aid.

Income changes and eligibility

The FAFSA (Free Application for Federal Student Aid) is used to determine a student's eligibility for need-based federal financial aid for college. This includes federal grants, scholarships, work-study, and/or loans. The FAFSA is not a loan or free money but an application that determines eligibility for receiving federal financial aid.

The FAFSA considers a student's or parent's income and assets when determining eligibility for financial aid. The application asks for information on the current total balance of cash, savings and checking accounts, college investment accounts, net worth of investments, family farms or businesses, and real estate. Retirement accounts, personal possessions, pensions, and whole life insurance are not reported.

The FAFSA also considers the number of children in college when determining eligibility. The previous FAFSA provided a benefit to families with multiple children in college simultaneously, but the simplified FAFSA has removed this, which will decrease aid eligibility for middle- and high-income students in this situation.

The FAFSA also has specific considerations for single parents and dependent students whose parents are divorced or separated. The parent responsible for filing the FAFSA is now based on who provides more financial support to the student, rather than the parent the student lives with. The FAFSA also defines single parents as dependent students with just one parent or independent students who are single parents.

The FAFSA also allows for income earned from work to be set to zero if the student or parent has received or applied for unemployment benefits in the last 90 days.

The 2025-2026 FAFSA has also reduced the number of questions, making it clearer and more concise. It also aligns more closely with federal income tax returns. These changes will impact eligibility, particularly for lower-income families who will now be eligible for more aid under the new formulas.

Student status and eligibility

The Free Application for Federal Student Aid (FAFSA) is used to determine a student's eligibility for need-based federal financial aid for college, based on their financial situation. The application is used to determine eligibility for federal grants, scholarships, work-study, and/or loans. The FAFSA is not a loan or free money, but simply an application to determine eligibility for federal student aid.

To be eligible for federal student aid, students must meet the following general requirements: they must demonstrate financial need, be a US citizen or eligible non-citizen, and be enrolled in an eligible degree or certificate program at a college or career school. The student's age, race, and field of study are not taken into account when determining their eligibility.

The FAFSA asks a series of questions about the parents' and student's income and assets, as well as other factors such as the number of children in the family. This information is used to determine the Expected Family Contribution (EFC), which is the amount of money that the family is expected to contribute to the student's education. The EFC is then used to calculate the student's financial need, which is the difference between the cost of attendance (COA) and the EFC.

The majority of students are eligible to receive some type of financial aid from the federal government to help pay for college or career school. Most families, regardless of their income or assets, are encouraged to fill out the FAFSA to determine their eligibility for loans, scholarships, and grants. Even if a family is ineligible for free money in the form of grants or scholarships, they may still be eligible for non-need-based aid in the form of direct unsubsidized loans from the federal government.

Citizenship and eligibility

To be eligible for federal student aid, a student must be a US citizen or national, a citizen of the Freely Associated States, a lawful permanent resident, or another eligible noncitizen. The Freely Associated States include the Federated States of Micronesia, the Republics of Palau, and the Marshall Islands. Students who are citizens of the Freely Associated States are eligible for Pell Grants, but not Direct Loans.

If a student is neither a US citizen nor an eligible noncitizen, they are not eligible for federal student aid. However, they can explore alternative sources of financial aid through resources like StudentAid.gov/noncitizen and listservs for counsellors and college access professionals. These sources can provide information on which colleges or career schools offer aid for undocumented students.

On the FAFSA form, eligible noncitizen students should select the "Eligible noncitizen" option under the "Student Citizenship Status" section. If the student provides an A-Number on the FAFSA form, their record is sent to the Department of Homeland Security (DHS) to verify their noncitizen immigration status or category. The results of the DHS and Social Security Administration (SSA) matches appear on the Institutional Student Information Report (ISIR). A failed match with either agency will result in a "C code" on the student's ISIR.

It is important to note that the FAFSA form does not inquire about a parent's citizenship status. However, in cases where a parent of a dependent undergraduate wishes to take out a Direct PLUS Loan or enrol in college or a career school as a student, their US citizenship or eligible noncitizen status becomes relevant. Parents do not require a Social Security Number (SSN) to complete the FAFSA form and can obtain an FSA ID without one.

Frequently asked questions