Every year, millions of families skip filling out the FAFSA (Free Application for Federal Student Aid) because they assume they won’t qualify for financial aid. Some think they make too much money, while others believe their student won’t be eligible for grants.
But here’s the truth: skipping the FAFSA could mean missing out on thousands of dollars in aid—not just need-based aid, but other forms of financial help as well. And in some cases, skipping it could make paying for college harder than it needs to be.
Even if you think your family won’t qualify, here are five reasons you should always submit the FAFSA and apply for financial aid.
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Many Colleges Require the FAFSA for Merit Scholarships
You might already know that the FAFSA determines need-based aid, like Pell Grants or federal work-study. But what many parents don’t realize is that some merit-based scholarships—which are awarded based on grades, test scores, or talents—require a FAFSA, too.
Colleges use the FAFSA to decide which students qualify for institutional aid (college’s funds), including scholarships that don’t depend on financial need. Some schools automatically consider students for these scholarships just by submitting the FAFSA. Others require the FAFSA before awarding any aid at all, even if it’s purely based on academic achievement.
If your student qualifies for a school's merit aid but doesn't submit a FAFSA, they might miss out on thousands of dollars in free money for college. That's a risk not worth taking. Why not take every possible step to protect your savings and retirement, and apply for financial aid even if you think you might not qualify?
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You Might Qualify for More Aid Than You Think
Many families assume they won’t qualify for financial aid because they earn a decent income. But the formula for financial aid isn’t as simple as “high income = no aid.”
Colleges consider many factors when awarding financial aid, including:
- Family size
- Number of children in college
- Cost of attendance at the school
- Unusual financial circumstances (like medical bills or job loss)
Even families with six-figure incomes sometimes qualify for aid, especially at private colleges with large endowments. These schools often offer generous need-based aid packages that reduce the sticker price significantly.
There’s only one way to find out what your student qualifies for—submit the FAFSA.
>>RELATED: Financial Aid Guide - How to Apply for Financial Aid
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It’s Required for Federal Student Loans
Even if you’re sure your student won’t qualify for grants or scholarships, they may still need to borrow money for college. And the best loan options come from the federal government.
Federal student loans provide several benefits:
- Lower interest rates compared to private loans
- More flexible repayment plans
- No co-signer required, meaning parents aren't responsible for the loan
- Loan forgiveness options available for certain careers
However, there is a catch. The only way to access federal student loans is by completing the FAFSA (Free Application for Federal Student Aid).
If your student ever needs to borrow money for school, submitting the FAFSA ensures they can access lower-cost federal loans instead of turning to high-interest private loans, which require credit checks and co-signers.
Even if you don’t plan on taking loans now, it’s good to have the option available—just in case.
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Your Financial Situation Could Change
No one likes to think about job loss, unexpected medical bills, or other financial emergencies. But life happens, and when it does, paying for college can become even more challenging.
If your family's financial situation changes after your child applies to college, you'll be glad you chose to apply for financial aid. Having a FAFSA on file makes it easier to request additional assistance. While you can still submit the FAFSA after your child is admitted, you may miss out on some aid since colleges, states, and the federal government all have their own financial aid deadlines. Many schools also award funds on a first-come, first-served basis, meaning the earlier you apply, the better your chances.
Even if your finances are stable now, submitting the FAFSA keeps your options open in case you need extra support later.
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States and Colleges Offer Extra Aid That Requires the FAFSA
The federal government isn’t the only source of financial aid. Many states and individual colleges offer their own grants, scholarships, and tuition assistance programs. But the majority of these programs require students to submit a FAFSA to be considered.
For example, some states offer:
- Tuition-free community college programs (like in Tennessee, New York, and Michigan)
- Tuition-free 4-year colleges based on a family’s income (like University of Michigan's Go Blue Guarantee that offers free tuition for families making $125,000 or less)
- Scholarships for students pursuing high-demand careers
Some colleges also offer need-based aid on their own terms, meaning a student might qualify for aid at a private college even if they don’t qualify for federal grants.
Skipping the FAFSA means missing out on these extra opportunities for free money.
Submitting the FAFSA Takes Less Than an Hour
Filling out the FAFSA might seem overwhelming, but the process has become much simpler and faster in recent years. It can now be completed in under an hour, and some families finish it in as little as 30 minutes.
Plus, it’s completely free—so there’s no risk in applying, but potentially thousands of dollars to gain.
Final Thoughts
At the end of the day, applying for financial aid is one of the smartest financial moves you can make. Even if you think you won’t qualify, you never really know until you apply. Colleges, states, and even private organizations use the FAFSA to award financial aid. Some scholarships require it.
Skipping the FAFSA could mean missing out on free money—money that could cover tuition, books, housing, or even just help reduce costs. College is expensive, and every dollar counts.
Don’t assume you won’t get help. Apply for financial aid and keep your options open.
