Credible takeaways
- Every type of FAFSA financial aid comes with its own set of eligibility requirements and limits.
- Your total aid amount is calculated using your school's cost of attendance, your Student Aid Index (SAI), and any other financial aid you receive.
- Financial aid offers may vary by school, and you'll learn how much you can get in the aid offer you receive from each school you're accepted to.
The FAFSA — which stands for Free Application for Federal Student Aid — delivers more than $112 billion in federal financial aid each year. If you're among the students submitting an application to help cover the cost of tuition, you may be wondering exactly how much aid you’re eligible to receive.
The answer is, it depends. From student loans to grants, there are a number of different types of federal aid you can receive, and the information you provide on your FAFSA helps schools determine how much aid to offer you.
Keep reading to find out how much the FAFSA can give you.
FAFSA financial aid limits
The FAFSA is an application offered by the U.S. Department of Education that students pursuing postsecondary education must submit to determine their eligibility for federal financial aid. Information requested in the FAFSA includes the personal and financial details of the student and, if applicable, their parent or legal guardian.
Based on this information, the schools you are accepted to will extend an aid offer, detailing how much and what forms of aid you are eligible to receive. This aid can include federal student loans, grants, and work-study funds. Each of these forms of aid has different parameters around maximum amounts and eligibility. The table below provides a quick overview.
How FAFSA calculates your aid amount
The information you provide on your FAFSA plays a big role in determining how much aid schools will offer you, but it also depends on factors like your year in school, enrollment status, and the school's total cost of attendance.
To calculate your specific federal financial aid offer, the financial aid staff at your school will first determine:
- The school’s cost of attendance: This figure takes into consideration tuition and fees, as well as added costs like food, housing, books, and transportation, among other expenses.
- Student Aid Index (SAI) or Expected Family Contribution (EFC): These are both indexes that help estimate your aid amount based on your income sources, assets, and benefits like Social Security or unemployment. The EFC also considers family size and number of family members in school. The 2024-25 FAFSA uses SAI, whereas the 2023-24 FAFSA uses EFC.
From there, the school's financial aid office will subtract either your SAI or EFC from your total cost of attendance. This figure will indicate your financial need, suggesting how much need-based aid you may be eligible to receive.
The final step in the equation is to subtract any other financial aid you may have received from your cost of attendance, which determines how much non-need-based aid you can get.
Related: How Much Can I Borrow in Student Loans?
Tips to maximize your aid offer
To help you get the most financial aid possible, here are some tips to consider:
- Fill out the FAFSA early: Filling out the FAFSA is essential to secure federal financial aid, and the earlier you register for the FAFSA, the better, as certain awards are first come, first served. Additionally, starting sooner offers some buffer room in case you need to make any changes or correct mistakes.
- Avoid common FAFSA mistakes: Steering clear of common FAFSA missteps is another way to ensure you end up receiving financial aid. Frequent mistakes include failing to report required information, not adding all of the colleges you're considering to the form, and forgetting to sign the FAFSA form.
- Minimize your taxable income: FAFSA takes student assets into account when deciding aid amounts, so keeping these low is beneficial. Since parents or guardians are only required to use a small part of their assets for college costs, it’s better to keep college funds in their names rather than transferring them to the student.
If there's a gap between your total college costs and your financial aid, consider private student loans to cover the difference. Remember to compare various rates and terms to ensure you choose the best lender for your circumstances.
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FAFSA FAQ
What’s the maximum amount of money the FAFSA gives you?
The amount of federal financial aid you receive cannot exceed your school’s total cost of attendance. Additionally, there are caps on how much you can receive in federal aid annually based on the type of aid, your year in school, and your dependency status as a student. For example, a first-year undergraduate student who is a dependent can receive up to $5,500 in subsidized and unsubsidized loans for the year, while independent students could get up to $9,500 for the first year. Graduate or professional students, on the other hand, have an annual limit of $20,500.
Can the FAFSA cover my entire tuition?
It's possible that the aid you receive through FAFSA can cover your full tuition, but this isn't always the case. In fact, many students and families have to cover a portion of the college bill even after filing the FAFSA, according to the Department of Education.
How do I know how much money FAFSA will give me?
After submitting your FAFSA, you can see how much federal student aid you're estimated to receive by viewing your Student Aid Report through fafsa.gov. However, you will only find out how much aid you’re eligible to receive from a school after you are accepted and the school sends you an aid offer.
How much does FAFSA give based on income?
There are no income limits for federal financial aid through the FAFSA. That said, income is taken into consideration when determining a student's aid eligibility, and certain types of federal financial aid — such as Pell Grants, work-study funds, and subsidized loans — are only available to those with demonstrated financial need.
