How to Fill Out the Parent Portion of the FAFSA

The Free Application for Federal Student Aid (FAFSA) helps students secure financial assistance for higher education. This application is a key step for students seeking federal, state, and institutional aid to cover college costs. Parents provide financial information used to determine a student’s eligibility for various forms of assistance.

Gathering Your Financial Information

Before beginning the FAFSA, parents should gather all necessary documents and financial records. This step helps streamline the application process and ensures accuracy in reporting.

Parents will need to provide specific demographic information, including their Social Security numbers, dates of birth, and current marital status along with the date of marriage, separation, divorce, or widowhood. This personal data establishes their identity and relationship to the student for federal aid purposes. Accurate entry of this foundational information is essential for the FAFSA system to correctly identify and process the application.

Federal tax returns from the “prior-prior” year are a primary requirement. For the 2025-2026 FAFSA, parents will need their 2023 federal tax returns, such as IRS Form 1040. These documents provide figures like Adjusted Gross Income (AGI), a factor in calculating a family’s financial strength. W-2 forms and other records of earned income from that tax year are also necessary to verify reported wages.

Records of untaxed income must also be compiled. This includes income not subject to federal income taxes but considered for financial aid calculations. Examples include child support received, veterans’ non-education benefits, workers’ compensation, and tax-exempt interest income.

Current balances of cash, savings, and checking accounts are required as of the day the FAFSA is completed. Parents should have bank statements ready to report these figures accurately.

Beyond liquid assets, the net worth of investments, businesses, and farms must be reported. Investments include real estate (excluding the primary residence), trust funds, money market funds, mutual funds, certificates of deposit, stocks, bonds, and other securities. The net worth is calculated as the current market value minus any related debt; if negative, it should be reported as zero.

Certain assets are excluded from FAFSA calculations. These exclusions include the family’s primary residence, life insurance policies, and retirement plans such as 401(k)s, pension funds, annuities, and non-education IRAs. For businesses and farms, the FAFSA now requires reporting the net worth of all businesses regardless of size. The net worth is its current value minus any debts owed against it.

Completing Parent Sections on the FAFSA Form

With all financial information organized, parents can begin completing their sections of the FAFSA. The FAFSA is completed through the official online portal at StudentAid.gov, which allows for electronic submission and provides immediate feedback.

Parents will enter their legal names, Social Security numbers, dates of birth, and marital status with the date this status was established. The state of legal residence is also a required demographic detail.

Parents must also provide household information. This section asks for “family size,” which replaces the prior “household size” terminology. Family size includes the student applicant, parents, and any other children or dependents for whom the parents provide more than half of their support.

The financial information section uses the previously gathered documents. The preferred method for reporting federal tax information is through the IRS Direct Data Exchange (DDX). This tool allows parents to consent to the direct transfer of their federal tax data from the IRS into the FAFSA form, ensuring accuracy and simplifying data entry. If consent for DDX is not granted, the FAFSA will be rejected, and the student will not be eligible for federal aid.

If the DDX cannot be used, or if an amended tax return was filed, parents will manually enter their financial details. This includes Adjusted Gross Income (AGI) and income tax paid from their IRS Form 1040. Untaxed income, such as child support received or tax-exempt interest, is also manually entered.

Parents will then report their cash, savings, and checking account balances as a single total. This figure should reflect the current amount on the day the FAFSA is submitted.

Following this, the net worth of investments, businesses, and farms is entered. It is crucial to report the net worth, which is the value of the asset minus any debt, rather than the gross market value. For example, if an investment property is valued at $100,000 with a $75,000 mortgage, the net worth reported would be $25,000. If any individual investment or business has a negative net worth, it should be reported as zero.

Finally, parents must electronically sign the FAFSA using their own Federal Student Aid ID (FSA ID). An FSA ID is a unique username and password that serves as a legal signature. Each parent should have their own FSA ID, and it cannot be shared with the student. Electronic signing is the fastest method, typically processing the application within three to five days. Without the required signatures, the student will not be eligible for federal student aid.

Understanding Post-Submission Steps

After successfully submitting the FAFSA, parents should anticipate several subsequent steps. An email confirmation will typically be sent, acknowledging that the application has been received and is being processed. This confirmation provides a record of submission and indicates the next phase of the financial aid journey.

Within a few days of submission, the student will receive a FAFSA Submission Summary (FSS), which was formerly known as the Student Aid Report (SAR). This document summarizes all the information reported on the FAFSA and provides the Student Aid Index (SAI), which is the number colleges use to determine aid eligibility. It is imperative to review the FSS carefully for any errors or discrepancies.

If any mistakes are found on the FAFSA Submission Summary, corrections can be made. This process involves logging back into StudentAid.gov, navigating to the submitted FAFSA, and initiating a correction. If the correction involves parental information, a parent must re-sign the FAFSA electronically. It is important to make corrections promptly, as some aid is limited and distributed on a first-come, first-served basis.

Some FAFSAs are selected for a process called verification. This does not necessarily mean an error was made, but rather that the U.S. Department of Education or the college requires additional documentation to confirm the accuracy of the reported information. If selected for verification, the FSS will include a note, often with an asterisk next to the SAI. Colleges will directly contact the student and parents with specific instructions on what documents, such as tax transcripts or W-2 forms, are needed.

Ultimately, colleges use the FAFSA data, along with any verified information, to create a financial aid award letter. These letters detail the specific types and amounts of aid a student is eligible to receive from that particular institution, including grants, scholarships, work-study, and loans. Parents and students will receive these award letters directly from each college to which the student was accepted and listed on the FAFSA.