You hear it time and time again during your senior year of high school: Complete your FAFSA! Your teachers and career advisors are not saying this idly. FAFSA stands for Free Application for Federal Student Aid. Completing this application gives you access to multiple types of federal and institutional financial aid that could help lower your college costs.
How the FAFSA Works
Every year, the federal government allocates a set amount to be given out as financial aid for students. This includes free grants and scholarships as well as student loans.
All students applying for college qualify for some form of federal financial aid. You must be a US citizen or US permanent resident to qualify. The only way to access these funds is by submitting the FAFSA. Students who don’t file the FAFSA are not ineligible to receive any grants, scholarships or federal student loans.
Here’s a quick look at some of the interesting stats surrounding the FAFSA:
FAFSA Stats by Demographic
The application cycle is slightly different every year but looking at the FAFSA stats of any year does reveal certain trends.
In the 2020 and 2021 FAFSA application cycle (quarters 1 through 6), 50% of US Seniors have completed their FAFSA – a total of 17,866,369 total applications were received.
The highest number of applications (8,590,300) were from ages 19 to 24 years, followed closely by 25 and older (7,365,540 applicants). The number of applications submitted by females (63%) was far higher than by males (37%).
A majority of the applications received were also prior to the first year of college (4.2 million). Application numbers dropped after the first year. That means a fair number of students didn’t re-apply during their second, third, and fourth years in college. This could be either because they didn’t know they had to reapply or they missed the application deadline.
An important takeaway from studying FAFSA statistics by demographic is that students must be made aware that the application is only valid for one year. The FAFSA must be filed every year to qualify for federal financial aid for the next academic year.
FAFSA Stats by State
Another interesting way to look at FAFSA statistics is by state.
For the enrollment cycle, 2022/2023, as of February 2023 the District of Columbia and the state of Tennessee have the highest percentage of enrollment completion rates.
In this same period, California saw the highest number of enrollments (511,949) followed by Texas (358,436) and then New York (215,866).
Enrollment numbers have been decreasing and these stats could indicate an urgent need of increasing awareness about the FAFSA in all states. 92% of students from low-income households will receive grants, while 85% of students have a chance of receiving aid! That’s HUGE and not a number to ignore.
Stats On the Number of Students Who Didn’t Complete their FAFSA
Recent studies found that about 1 in 5 students don’t apply for financial aid at all. Around 30% of these didn’t apply as they were going to a 2-year college and presumed they didn’t qualify. However, another 18% were heading toward a 4-year school and they didn’t file their FAFSA either.
These numbers indicate that many students are simply not aware that they qualify for federal financial aid. The fact is students qualify for financial aid, whether they’re completing a 2-year associate degree, 4-year bachelor’s degree, or post-graduation. This is as long as they meet all other requirements.
Many students didn’t complete their FAFSA because they believed they were either ineligible or preferred to pay for school without aid. 33% stated they didn’t want to be in debt. However, FAFSA goes beyond federal student loans.
The FAFSA also gives you access to federal grants and scholarships that don’t need to pay back. In addition, many schools use the application to determine their own aid, scholarships, and grants. Even if you’re not happy with what the federal government offers you, there may be a better offer from your school.
Even if you qualify for only a small amount in scholarships and grants, they add up over your four years in college. These free forms of financial aid can help reduce the total student loan debt that you need to pay back with interest after graduating.
What Is Left on the Table
When you don’t complete the FAFSA, you’re leaving a lot of money on the table. Take the Pell Grant offered by the federal government for example. The average amount that went unclaimed per eligible student was nearly $2,000. Mississippi, Washington D.C., Arizona, New York, Idaho, Florida, and a number of other states had students leave over $2,000 behind each when it came to the Pell Grant. Wouldn’t it be nice to have that extra money? And grants are free money too.
All it takes to access this free aid is to make sure to fill out the FAFSA every year and submit it before the deadline.
70% of students attending a 4-year college receive federal aid, but if you don’t apply, there’s only a very small chance you’ll get any assistance from your school. FAFSA is for more than just loans and if you’re not applying, you could be leaving free money on the table.
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| Lender | Rates (APR) | Eligibility | |
|---|---|---|---|
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6.97%-15.03%* Variable
5.99%-14.00%* Fixed
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Undergraduate and Graduate
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VISIT CITIZENS |
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4.50% - 15.49% Fixed
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Undergraduate and Graduate
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4.07% - 15.66% Fixed
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Undergraduate and Graduate
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6.07% - 11.31% Variable
4.39% - 10.39% Fixed
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Undergraduate and Graduate
|
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6.22% - 16.08% Variable
4.09% - 15.66% Fixed
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Undergraduate and Graduate
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|
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6.54% - 11.08% Variable
3.95% - 8.01% Fixed
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Undergraduate and Graduate
|
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5.62% - 18.26% Variable
4.11% - 15.90% Fixed
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Undergraduate and Graduate
|
VISIT EARNEST |
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4.98% - 12.79% Variable
8.42% - 13.01% Fixed
|
Undergraduate and Graduate
|
VISIT ELFI |
