Do I Have to Renew FAFSA Every Year?
Yes, FAFSA needs yearly renewal. This guide explains why and how to complete the process for continued financial aid.
Do I Have to Renew FAFSA Every Year?
Students must complete the Free Application for Federal Student Aid (FAFSA) annually to receive federal, state, and institutional financial aid. This yearly submission is important because financial situations, academic progress, and eligibility criteria can change, directly impacting the amount of aid a student may receive. Completing the FAFSA each year ensures continued access to various forms of financial support, including grants, scholarships, federal student loans, and work-study programs. The application serves as the main way for financial aid offices to assess a student’s eligibility for the upcoming academic year.
Why Annual Renewal is Required
The annual FAFSA submission is necessary because a student’s financial circumstances change from one year to the next. Fluctuations in income, assets, and family size directly influence the calculation of a student’s financial need, now determined by the Student Aid Index (SAI). Continued eligibility for financial aid also depends on confirming enrollment status and demonstrating satisfactory academic progress. Aid programs and their rules can undergo updates each year, requiring a fresh assessment. This yearly process allows financial aid offices to reassess a student’s financial need, ensuring aid packages reflect current data.
Preparing for Renewal
Gathering specific documents and information streamlines the FAFSA submission process. The FAFSA uses tax information from two years prior to the academic year for which aid is sought. For instance, the 2024-2025 FAFSA uses 2022 tax data. This includes federal income tax returns, W-2 forms, and other statements of money earned.
Records of untaxed income, such as child support received or veterans’ non-education benefits, are also required. Asset information, including cash, savings, checking accounts, and investments, must be available. Students and, if dependent, their parents will also need to confirm or update personal details such as Social Security Numbers, dates of birth, and contact information. Both the student and a parent must have an FSA ID to sign the application electronically.
The Annual Renewal Process
To begin the annual FAFSA submission, access the official FAFSA website using your FSA ID. The system often pre-fills certain information from the previous year’s application, which requires careful review and updating. You will then update the financial information you gathered, inputting the latest tax data and asset balances into the appropriate sections.
The IRS Data Retrieval Tool (DRT) allows for the direct import of tax information from the IRS, which can enhance accuracy and efficiency. After all sections are updated, review the entire application for any errors before signing and submitting it. Upon successful submission, you will receive a FAFSA Submission Summary that provides details about your application and estimated federal aid eligibility. Schools listed on the application will then use this information to create and send financial aid offers.