Only 71% of families completed the Free Application for Student Aid (FAFSA) for the 2025/2026 school year, down from 74% the previous year. Survey findings showed that the most common reason why families didn’t apply was the belief that their family’s income was probably too high to qualify for aid. That perception was shared by 57% of non-submitting households earning $150,000 or more per year, 32% of those earning $50,000 to $100,000, and 20% of those earning less than $50,000.

Clearly, however, some of those non-submitters missed out on aid for which they would have been qualified to receive, as 7 in 10 families with undergraduate students reported receiving a financial aid offer from the school their student currently attends. Overall, 54% of FAFSA filers reported receiving the amount of financial aid they expected. Meanwhile, 21% received less than expected, 6% received more, and 19% had no expectations regarding the amount of aid they would receive.

There are no income limits that disqualify anyone from submitting a FAFSA application, and the government uses its Student Aid Index (SAI) to determine needs-based federal student aid eligibility. The SAI is a formula-based number calculated from financial information that applicants provide on the FAFSA; the lower the SAI, the greater the student’s financial need. (Starting with the 2024–25 academic year, the SAI replaced a previous aid eligibility measure known as the Expected Family Contribution).  

 So why is it worth your time to submit a FAFSA application?

1. It’s free. Typically, it takes about 30 minutes to complete the FAFSA form online. You’ll need to have your latest tax returns and most recent savings and investments statements handy. Confused or concerned? Customer service representatives and a federal student aid chatbot are available to help walk you through the process, and a FAFSA help topics page addresses frequently asked questions.
2. The government has lots of aid to share. In fiscal year 2024, the U.S. Department of Education’s Office for Federal Student Aid provided $126 billion in grants, loans, and work-study funds to help students pay for college. It pays to apply early. A large portion of the aid is distributed on a rolling basis, and the earlier you fill out FAFSA, the better your chances of receiving a generous financial aid package. After all, you’ve got plenty of competition for that aid; more than 21 million students applied in 2024. October 1 is typically the date when applications become available for those seeking federal aid for the upcoming academic year. While applicants have until the end of that academic year to qualify for aid, it’s best to apply well before the academic year begins. For the 2025/2026 academic year, the deadline to apply is June 30, 2026; for 2026/2027, the deadline is June 30, 2027. However, for priority consideration, it’s important to be aware of earlier state and college-specific deadlines, which can be as early as October 1. Visit your state higher education agency’s website for the most up-to-date state deadline, or check out the U.S. Department of Education’s listings of state deadlines.
3. You’ll gain an understanding of what you can afford. By learning how much school will cost and how much you and your child can expect in aid, you’ll have a much clearer picture of which schools might make the best sense.

Don’t forget: You need to apply for FAFSA each year your child is attending college. The amount and types of aid awarded may vary from year to year. But you’ll never know unless you try. Be sure to work with your financial professional, who can help you implement a plan for sending your child to school, including setting up a specific savings vehicle, such as a 529 education savings account.