The Complete Guide to FAFSA and Financial Aid (2025-2026)

The path to higher education often comes with a hefty price tag, but thankfully, financial aid exists to make college more accessible. Financial aid is money provided to students and families to help cover the costs of post-secondary education. This can come from various sources and in different forms, all designed to lessen the burden of tuition, fees, room, board, books, and other educational expenses. One of the most crucial steps in unlocking this financial aid for college is completing the Free Application for Federal Student Aid, or FAFSA. Many students get financial aid through FAFSA, and applying could save you and your family a lot of stress later on, not to mention, it’s free to apply! Let’s walk through everything you need to know to apply for FAFSA and the different types of financial aid for college. 

TABLE OF CONTENTS:

• What is FAFSA?
• What is the FAFSA application deadline?
• How do I get financial aid for college?
• How to Complete the FAFSA
• Types of Financial Aid for College
• Average Financial Aid for College
• College Financial Aid Tips
• How Parents Can Assist With the Financial Aid Process 

What is FAFSA?

The FAFSA is a free online form you submit to apply for financial aid for college. Think of it as the gateway to almost all financial assistance for college. It will be automatically submitted to all the colleges you are applying to. The FAFSA determines your eligibility for student financial aid. It’s not just for federal aid; many states and colleges use the information from your FAFSA to award their own grants, scholarships, and loans.

When you get into a college in the spring of your senior year of high school, you’ll likely get a “financial aid award package,” meaning money from the school. This is where you will see how much you received and how much you will still have to pay. FAFSA, however, provides aid money that you do not have to pay back and offers loans you can borrow that must be paid back after school.

Completing the FAFSA is important because it’s required for federal grants (like the Pell Grant), federal student loans (Stafford loans, Plus loans), and federal work-study programs. Many states also have their own financial aid programs, and they almost always require a completed FAFSA to apply. Colleges themselves often use FAFSA data to determine who receives their own scholarships and grants.

What is the FAFSA application deadline?

There is no official deadline to apply for FAFSA, but federal aid is provided on a first come, first served basis. Thus, it’s wise to submit your form as soon as possible. FAFSA forms are available each year starting on October 1. For example, if you’re applying for college for the 2026-2027 academic year, you should complete the FAFSA starting October 1, 2025. The later you apply, the lower your chances become of receiving a good financial aid package for college.

No! Please do not wait for an acceptance letter from college before applying for FAFSA, as doing so will further delay the process and your potential package. FAFSA allows you to enter in a total of 10 possible colleges you will apply to, and you can change those schools after completing your FAFSA at any time.

In the end, you’re only going to have one school you choose to attend so there is no need to be worried about listing more than 10 schools. That said, it’s suggested to only list colleges you actually paid to apply for, rather than listing all the schools you have in mind.

How do I get financial aid for college?

Securing financial aid for college involves a strategic, multi-step process centered on the FAFSA and diligent scholarship hunting. Ideally, you will have been researching and preparing before the FAFSA application opens on October 1. As previously stated, completing the FAFSA is the single most important step in getting financial aid for college. It is a free online form that must be filed every year. Keep reading to learn how to complete the FAFSA.

To apply for FAFSA, there are several forms of identification you and your legal guardian will have to submit:

• Your FSA ID and the FSA ID of a guardian—these are IDs or “logins” that you and your guardians will create when you first access the FAFSA application.
• Your guardian’s and your own social security numbers (SSN). If you and/or your guardian do not have an SSN, you will need to contact FAFSA about your options for applying.
• Your Driver’s License Number, which is only applicable if you have a license. If you don’t have one, no problem.
• Your parent’s W2 and 1040 Forms, which your guardian’s can receive from their employers. If your guardians do not work, they need not to worry about the forms, and they can be listed on FAFSA as unemployed.
• Annual tax returns from this year and last, which your guardians will also have. Please do not wait for your guardians to file taxes to apply. They can always add those after submission.
• Record of untaxed income such as social security. This is another form your guardian will have from work. If your guardians are not receiving social security, this does not apply to you.
• Record of a guardian’s bank statements and investments, which are basically an account of all financial assets outside of working that your guardians have.
• Finally, a list of all the schools you are interested in.

It’s a lot to digest, but it is extremely important that you start gathering all the documents you’ll need to apply for the FAFSA.

How to Complete the FAFSA

Here is a step-by-step guide to completing the FAFSA:

Step 1: Gather documents. Use the list above to gather the documents needed to apply to FAFSA.

Step 2: Create FSA ID. This is your electronic signature. The student and all required “contributors” (parent/spouse) must create a StudentAid.gov account (FSA ID).

Step 3: Start a new form. Go to the official Federal Student Aid website and select “Start New Form.”

Step 4: Determine dependency. Answer the dependency questions to see if you need to include parent information.

Step 5: Invite contributors. If you are a dependent student, the form prompts you to invite your required contributor(s) via email.

Step 6: Provide consent and financials. The student and all contributors must provide consent to have the IRS automatically transfer federal tax data into the FAFSA.

Step 7: List schools. Add the names of all colleges you are considering applying to.

Step 8: Sign & submit! The student and all contributors must electronically sign the FAFSA using their respective FSA IDs.

Types of Financial Aid for College

As you think about paying for college, you should know that there are two main types of financial aid: (1) Need-based aid–federal and state grants and (2) Merit-based aid. We’ll break down the difference in these types of aid for you right here.

Need-based financial aid is determined by a student’s demonstrated financial circumstances, as calculated by the FAFSA’s Student Aid Index (SAI). If you are looking for need-based financial aid, the first place to start is by submitting the FAFSA online starting in October of your senior year. The application form is required to apply for any federal financial aid and helps determine how much aid you can receive for college. By applying, not only will you become eligible for government college aid, but you will also become eligible for thousands of other non-federal grants and scholarships. In addition to the FAFSA, some schools will ask you to submit a second application, the CSS/Financial Aid Profile, for non-federal (private) aid. These schools will use your Profile application to help them award scholarships and grants that are given out by the school. 

Types of Need-Based Financial Aid

The table below shows the types of need-based financial aid for college.

Type of Need-Based Aid	About	Repayment Status
Federal grants	Money for undergraduate students with the greatest financial need.	No repayment
State/institutional grants	Funds provided by state governments and individual colleges to students who demonstrate high financial need.	No repayment
Direct subsidized loans	Federal loans for undergraduate students with financial need. The government pays the interest while the student is in school.	Must be repaid
Federal work-study	A program allowing students with financial need to earn money through part-time jobs.	No repayment

The other type of financial aid available for college is merit-based aid. Merit-based financial aid is based on your achievements and ability regardless of your financial status. For example, athletic scholarships are merit-based aid, as are grants awarded to academic students for their grades. You can even earn merit-based aid for scoring high on the SAT or ACT! Merit-based aid is usually awarded by colleges, organizations, or corporations.

Types of Merit-Based Financial Aid

The table below shows the types of merit-based financial aid for college.

Type of Merit-Based Aid	About	Repayment Status
Institutional scholarships	Awards given directly by colleges based on academic performance, athletic talent, or specific leadership roles.	No repayment
Private scholarships	Awards from companies, foundations, and community groups based on academic excellence, field of study, heritage, or other specific criteria.	No repayment
Direct unsubsidized loans	Federal loans available to most students regardless of financial need. The student is responsible for all interest.	Must be repaid
Direct PLUS loans	Federal loans for graduate/professional students or for parents of undergraduates. Eligibility relies on creditworthiness, not need.	Must be repaid
Private loans	Loans from banks or private lenders. Awarded based on credit score, often requiring a co-signer.	Must be repaid

Average Financial Aid for College

The average financial aid package varies significantly depending on the student’s status (undergraduate vs. graduate) and the type of college they attend. According to College Board, undergraduate students received $16,360 in financial aid on average in 2023-2024. Visit the Federal Student Aid website to use their Federal Student Aid Estimator to get an estimate of how much federal student aid you may be able to receive.

College Financial Aid Tips

Whether you are looking for need-based or merit-based or both, here are some tips to help you with your financial aid process:

How Parents Can Assist With the College Admissions Process

One of the biggest questions parents have as their child navigates the college admissions process is, “What’s my role?” At Kaplan, we tend to advise students to take the wheel. That said, parents can sit in the car, too, perhaps in the backseat. But every student is different. Every family is different. For example, one place where parents should/must be involved is in the college financial aid process (see above). In almost all circumstances, unless the applicant is independent, parents’ tax returns are needed to determine the FAFSA award.

Looking for more help with the college admissions process? Get 1-on-1 guidance from an expert Kaplan College Advisor. Schedule a call to learn more about our college admissions consulting packages today.

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Written by Kaplan experts, reviewed by Cortney Flint, Kaplan’s Head of College Counseling. Cortney is a higher education expert with over 15 years of experience demystifying the complexities of college admissions for students worldwide.