Not Sure Whether You Should File a FAFSA? Here are 5 Reasons Why You Should

ZaQuela Taylor, assistant director of student services at the University of Illinois at Chicago. … (+) left, assists UIC freshman Krina Patel during a FAFSA workshop at the UIC Student Financial Aid Office on Feb. 23, 2024. (Vincent Alban/Chicago Tribune/Tribune News Service via Getty Images)

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The Free Application for Federal Student Aid is officially open, and so far things seem to be going smoother than last year There were significant delays and problems with the FAFSA. So, does it make sense to file a FAFSA this year?

Prospective and returning college students must complete the FAFSA to qualify for federal financial aid, including Pell Grants, the main federal grant used to pay for college. After filling out the form, students are given a Student Aid Index number, which determines what type of financial aid they qualify for and how much they can receive. The lower the SAI number, the more aid students receive. States and colleges also use the FAFSA to decide how much support students will receive from state and institutional aid programs.

Is It Worth Submitting the FAFSA?

The 2025-26 FAFSA is for students who plan to enroll for the first time or continue their education in fall 2025. The FAFSA is issued during the final admissions season. This, which included a much delayed launch, led to fewer students applying for aid. But the U.S. Department of Education has apparently found a solution to these problems, which looks set to reverse last season’s decline in FAFSA applications.

For students and families considering whether to submit a FAFSA, here are five reasons why you should.

1. Colleges Require FAFSA for Merit Scholarships

Many colleges require their students to complete the FAFSA if they want to be considered for merit-based scholarships. Even if you are not eligible for the need-based aid that FAFSA usually opens, you should submit the FAFSA to see if you qualify for merit aid.

Colleges often require students to complete the FAFSA so they can be sure they are getting all the aid they deserve. Colleges also cannot give a student more aid than their calculated need or cost of attendance (which includes tuition, books, housing and food, transportation, and personal expenses). That’s why you want to know up front whether you’ll qualify for a federal or state grant, and then make sure they can give you a complete picture of your federal, state, and institutional financial aid all at once.

2. You Must Complete the FAFSA to Receive Government Grants

The federal Pell Grant is generally intended to support students from low-income families, but many state grant programs are open to those with higher incomes. So, if your family’s income level does not qualify you for the Pell Grant, you can still complete the FAFSA and potentially receive government aid. For example, the current income limit for the California Cal Grant A program, which pays full tuition at California State University or University of California schools, is just over $131,200 for a family of four.

Submit Your FAFSA As Soon As Possible

If you’re going to submit your FAFSA, it pays to get it done as soon as possible. Many states have priority deadlines for state aid programs, and missing them could mean missing out on thousands of dollars in aid for college.

3. Tuition Can Be Free

Many colleges and universities are making more middle-income and even upper-income families eligible for free tuition programs. The University of Texas System, for example, increased the income limit on its tuition-free pledge for all families with gross income of $100,000 or less. The University of Massachusetts system does the same for families earning $75,000 or less. Many private, nonprofit colleges and universities have similar programs, such as MIT’s new free tuition guarantee for families with incomes under $200,000, but you usually must file your FAFSA to be considered for them.

4. You Need a FAFSA to Qualify for a Pell Grant

Students can currently receive up to $7,395 per year from the Federal Pell Grant if they qualify, and thereafter major changes in eligibility criteria Due to the December 2020 FAFSA Simplification Act, approximately 600,000 more students were eligible for Pell Grants compared to previous years. More students are eligible to receive grants as income thresholds have increased significantly; so it may be worth applying even if you haven’t qualified in previous years.

university students with children, especially single parentsBecause the new formulas make parenting students eligible for grants at higher income levels than other students (up to 225% of the federal poverty line, or just under $52,000 for a single parent with two children), they are even more likely to qualify.

Community college students often cannot apply for aid either because community college is cheap or even free in many states. Community college students who don’t apply for aid are leaving on the table funds that could help them cover basic needs like food, housing, or books and supplies. Community college students can even reduce their study hours and focus more on their academic studies.

5. If You Unexpectedly Need to Apply for More Aid, You’ll Need a FAFSA

Every year, after applying to college, some students face changes in their financial situation that make it difficult for them to pay for college. The FAFSA uses approximately two years’ worth of income and tax information when you submit your application. Therefore, universities cannot account for such changes in life circumstances as job losses, serious illnesses and divorce.

Students can appeal to schools, which have wide latitude to take students’ financial situations into account. However, they can only consider an appeal if you have a FAFSA on file. If you have not completed the FAFSA, the appeal process will take much longer.