Do You Get FAFSA Every Semester?
Understand FAFSA's annual application, per-semester aid disbursements, and key factors that influence your financial assistance each term.
The Free Application for Federal Student Aid (FAFSA) helps students access federal grants, work-study programs, student loans, and state and institutional aid. It determines eligibility for financial assistance based on financial need.
The Annual FAFSA Application
While students may receive financial aid multiple times throughout an academic year, the FAFSA is an annual application. This yearly process accounts for potential changes in a student’s or family’s financial situation, dependency status, and academic progress.
The FAFSA becomes available on October 1st for the academic year starting the following fall. For instance, the FAFSA for the 2025-2026 academic year opened on October 1, 2024. Submitting the application early is beneficial, as some state and institutional aid is awarded on a first-come, first-served basis. The federal deadline for submitting the FAFSA is June 30th of the academic year for which aid is sought.
How Financial Aid is Disbursed
Although the FAFSA is an annual application, financial aid funds are disbursed on a term-by-term basis, such as per semester or quarter. After eligibility is determined and aid is awarded, funds are sent directly to the college or university. The school then applies these funds to the student’s account to cover direct educational costs like tuition, fees, and on-campus housing.
Any remaining financial aid funds after institutional charges are covered are then disbursed to the student. This remaining balance can be used for other educational expenses, including books, supplies, off-campus living costs, and transportation. These excess funds are provided to the student via direct deposit to a bank account or a check.
The timing of these disbursements varies by institution but occurs around the start of each academic term. For first-time federal student loan borrowers, a waiting period of up to 30 days after the start of classes may apply before funds are released. First-time borrowers of Direct Subsidized or Unsubsidized Loans must also complete entrance counseling before their initial disbursement.
Factors Affecting Aid Per Semester
Even with an annual FAFSA application and term-by-term disbursements, the amount of aid a student receives each semester can fluctuate due to several factors. A student’s enrollment status significantly impacts aid; full-time, part-time, or less than half-time enrollment can alter eligibility and award amounts. Federal aid programs require at least half-time enrollment for certain types of assistance, such as federal student loans.
Satisfactory Academic Progress (SAP) is another determinant for continued aid eligibility. Each school establishes its own SAP policy, which requires students to maintain a minimum grade point average (GPA), complete a certain percentage of attempted credits, and complete their degree within a maximum timeframe. Failure to meet these standards can result in a warning period, followed by potential suspension of federal aid eligibility if progress is not regained.
Changes in a student’s or family’s financial circumstances can also affect aid amounts. While the FAFSA uses prior-prior year income data, significant changes, such as job loss or unusual medical expenses, might warrant contacting the financial aid office for a “professional judgment” review. If a FAFSA application is selected for verification, students must submit additional documentation to confirm the information reported. Delays in completing verification can lead to delays in aid disbursement or adjustments to the award.