FAFSA 101: Everything You Need to Know About Filling Out the FAFSA

Tom Gilmour is a senior director of Planning Experience Integration for Northwestern Mutual. 

The start of fall officially kicks off college application season—and that includes applying for college financial aid, too.

Every year, the Department of Education doles out more than $111 billion in federal grants, student loans and work-study awards to some 13 million college students. But how do you know if your child is eligible to access these funds?

The only way to find out for sure is to fill out the FAFSA, which is expected to become available on December 1, 2024 for the 2025-2026 school year.

Here’s everything you need to know to fill out the FAFSA, including how to get started, how financial need is calculated and what actually happens after you submit your application.

What is the FAFSA?

FAFSA stands for Free Application for Federal Student Aid. It’s a form that college-bound teens and their parents use to apply for federal student aid programs offered by the U.S. Department of Education.

States, colleges and the Department of Education use the information contained in your FAFSA submission to determine whether or not you are eligible for financial aid—and, if you are, how much you should receive.

Why should I fill out the FAFSA?

The FAFSA can help you receive federal student aid money that you can use to cover the cost of college, including tuition and fees, room and board, books, supplies, transportation and other school-related costs.

Families with higher incomes often think their child won’t qualify for need-based grants and decide not to bother with the form—but this is a big mistake. It’s always best to fill out the application. After all, many states and colleges use the FAFSA to determine eligibility for grants and merit aid awards beyond the federal level.

Filing the form is also necessary to take out federal student loans, which have benefits typically not associated with private loans, such as fixed interest rates, forgiveness opportunities and more flexible repayment plans. While only students with financial need will qualify for subsidized student loans, all undergraduates qualify for unsubsidized federal loans, regardless of need.

You won’t really know if your student qualifies for financial aid unless you try. You have nothing to lose and everything to gain.

What do I need to start the FAFSA?

The first thing you have to do is create a Federal Student Aid ID. The FSA ID is a username and password that allows you to access certain Department of Education websites, including your FAFSA application. It’s also required if you plan to sign your federal student aid documents electronically. Students and their parents each will need to create their own FSA IDs. Do this early to avoid delays in the process.

You’ll also need your Social Security number and, if you have a driver’s license, your driver’s license number.

To file the FAFSA for the 2025-2026 school year, gather the following:

• Your 2023 tax return and W-2 forms
• Records of untaxed income (child support received, interest from tax free bonds, etc.)
• Records of assets (savings accounts, investment accounts, investment property, etc.)

Note that for the latter, you must report current values as of the date you sign the FAFSA and not from your 2023 tax return. Both parents and students will also need to provide their Social Security numbers and driver’s license numbers (if applicable).

Those who are eligible can use the IRS Data Retrieval Tool to import tax information directly into the FAFSA form. This reduces the chances of you entering the wrong information by mistake. Don’t worry if your current financial situation no longer reflects that of your 2023 tax return. You can always contact individual schools after you've been accepted to document changes in income.

Speaking of schools, you’ll need to list the ones you’re considering on the FAFSA. Some states require you to list them in a particular order to be considered for state aid.

How do I submit the FAFSA?

Now that everything’s in order, it’s time to actually fill out the FAFSA. The easiest way to do so is online.. If you prefer, you can download and print out a PDF FAFSA form to complete and mail in.

When is the FAFSA deadline?

The deadline to file the FAFSA for the 2025 to 2026 school year is June 30, 2025. That’s the absolute latest that you can submit the form.

But keep in mind that a lot of federal financial aid is distributed on a first-come, first-served basis. That’s why it’s generally in your best interest to fill out the FAFSA as soon as possible once it becomes available, as this will increase your chances of securing aid and maximizing how much you receive.

It’s also important to note that each state and college may have additional financial aid funds to distribute—and that they may have their own deadlines, which could be earlier than the federal deadline. You should also be sure to renew your FAFSA application every year your child attends college.

How does the FAFSA help calculate financial aid?

The financial aid office at your child’s college will use the FAFSA to determine how much financial aid he or she is eligible to receive. The office calculates financial need by subtracting your expected family contribution (EFC) from the total cost of attendance (COA). So, for instance, if your total COA is $20,000 and your EFC is $15,000, your financial need is $5,000.

The COA is the estimated amount it will cost to attend the college for the entire school year. It includes tuition and fees, room and board, the cost of books and supplies, as well as other related expenses.

Meanwhile, your family’s taxed and untaxed income and assets are considered in the formula that determines your EFC. Your family size and the number of family members attending college during the year may also be factored into these calculations. (Note that your EFC is not what you’re actually going to pay for college; it’s simply a number used by the schools to help determine your final aid package.)

Need-based federal student aid programs include the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Direct Subsidized Loan, Federal Perkins Loan and Federal Work-Study.

To determine non-need-based aid, the school will subtract the amount of financial aid your child has been awarded so far (including private scholarships) from the COA. Examples of non-need-based federal student aid programs include the Direct Unsubsidized Loan, Federal PLUS Loan and the TEACH Grant.

What happens after I submit the FAFSA?

If you submitted your FAFSA form electronically and provided an email address, you’ll receive a link to your Student Aid Report (SAR) within three to five days. If you do not provide an email address, then a paper copy will be mailed to you within about three weeks. The SAR summarizes the information you provided on the FAFSA.

Review the report with a fine-tooth comb to ensure everything is accurate and complete and make corrections if needed. After you’ve been accepted to a college, the financial aid office will send you an electronic or paper award letter that states how much aid you’re eligible to receive at the school.

Didn’t get to the number you were hoping for? Have competing offers from similar schools? You may be able to negotiate for a financial aid package that works better for your family’s finances—and your student’s future.

Other ways to pay for college

Student aid is a great resource and one that you should certainly take advantage of if you are eligible to receive it, but it’s far from the only way to pay for college.

If you are a new parent or your child is still a few years away from attending college, you might consider opening a college savings plan like a 529. Contributions to these plans are tax-advantaged, meaning they’ll grow tax-deferred. Likewise, you won’t have to pay federal income taxes on withdrawals as long as the money is used for qualified college costs like tuition, room and board, fees, etc., which makes them a great choice for many families.

Your financial planner can help you explore your options and understand how saving for your child’s educational costs can fit into your broader financial plan.