How Much Money Do I Get From FAFSA?

The Free Application for Federal Student Aid (FAFSA) is the initial step for students seeking financial assistance for higher education. It collects financial and demographic information, allowing institutions to assess a student’s circumstances. Submitting the FAFSA is a prerequisite for accessing federal grants, scholarships, work-study programs, and student loans.

Understanding Aid Eligibility Calculation

Federal financial aid amounts depend on several calculations. The Student Aid Index (SAI), an eligibility index number from the FAFSA, considers a student’s (and, if dependent, their parents’) income, assets, and family structure, analyzing reported income and asset net worth. The SAI calculates available financial resources, deducting an allowance for living expenses. A lower SAI generally indicates higher financial need, and can be as low as -$1,500, identifying students with the most significant need.

The Cost of Attendance (COA) represents the total estimated cost of attending a specific institution for one academic year. It typically includes tuition, fees, room and board, books, supplies, transportation, and personal expenses. Each school sets its own COA.

Financial need is determined by subtracting the SAI from the COA (COA – SAI = Financial Need). This formula indicates the maximum need-based aid a student could receive. A student’s dependency status (dependent or independent) affects the FAFSA information and SAI calculation. Enrollment status, such as full-time or half-time, also influences aid eligibility.

Exploring Available Financial Aid Types

Several forms of federal financial aid are available after eligibility is determined.

Grants are “gift aid” that typically do not require repayment, unless specific conditions are not met. The Federal Pell Grant is for undergraduate students with substantial financial need. The maximum for 2025–26 is $7,395, depending on need, COA, and enrollment. Students can receive Pell Grants for up to 12 full-time terms, or approximately six years.

The Federal Supplemental Educational Opportunity Grant (FSEOG) aids undergraduates with exceptional financial need. These grants range from $100 to $4,000 per year, depending on student need and institutional fund availability. FSEOG funds are limited and administered by participating schools, often prioritizing Pell Grant recipients.

The Teacher Education Assistance for College and Higher Education (TEACH) Grant funds students who commit to teaching in a high-need field at a low-income school for at least four years within eight years after graduation. Failure to fulfill this obligation converts the grant into a Direct Unsubsidized Loan, requiring repayment with interest.

Scholarships also provide financial support and do not need to be repaid. They originate from federal programs, states, colleges, and private organizations. Scholarships are often awarded based on academic merit, specific talents, or demographic criteria.

The Federal Work-Study Program allows eligible students to earn money through part-time employment to cover educational expenses. It provides opportunities for undergraduate and graduate students with demonstrated financial need to work on or off campus, often in positions related to their studies or community service. Unlike grants or loans, Work-Study funds are earned through employment and paid directly to the student as wages.

Federal student loans are borrowed funds that must be repaid with interest. Direct Subsidized Loans are for undergraduates with financial need, with the government paying interest while the student is enrolled at least half-time, during a six-month grace period, and during deferment. Direct Unsubsidized Loans are for undergraduate and graduate students, regardless of financial need, with interest accruing from disbursement. PLUS Loans, including Parent PLUS Loans and Grad PLUS Loans, allow borrowing up to the COA minus other aid, require a credit check, and accrue interest from disbursement.

Receiving and Maintaining Your Aid

After submitting the FAFSA, students receive a Student Aid Report (SAR), which summarizes the information and indicates Pell Grant eligibility. Review the SAR for accuracy and make any necessary corrections promptly.

Following FAFSA submission and acceptance to an institution, schools send a financial aid award letter. This letter details the types and amounts of aid offered, including grants, scholarships, work-study, and loans. Students should understand which aid components are gift aid and which are loans that must be repaid.

Financial aid funds are generally disbursed by the school, not directly to the student in a lump sum. Aid is often applied directly to institutional charges like tuition, fees, and room and board. Any remaining balance is then disbursed to the student, typically at the start of each semester or term. This ensures institutional costs are covered first, with residual funds available for other educational expenses.

Maintaining eligibility for federal financial aid requires adherence to Satisfactory Academic Progress (SAP) standards set by each institution. These standards typically include: maintaining a minimum cumulative GPA, successfully completing a certain percentage of attempted credits (pace of completion), and completing the degree within a maximum timeframe. This timeframe is generally limited to 150% of the program’s published length; for example, a 120-credit program would have a maximum of 180 attempted credits.

If a student does not meet SAP, they may initially be placed on a financial aid warning, allowing aid for one additional term to improve academic standing. Failure to meet SAP after a warning can result in suspension of federal financial aid. Students who lose aid eligibility due to SAP may appeal, often requiring documentation of extenuating circumstances and an academic improvement plan. Report significant changes in financial circumstances or enrollment status to the school’s financial aid office, as these could impact aid eligibility.