We’re in what I call “financial aid season.” With applications being submitted and the FAFSA opening October 1st, families are turning their attention to scholarships and financial aid.
One question I hear frequently: “Should we file the FAFSA if we’re confident we won’t qualify for federal aid?”
It’s a valid question. The good news is the FAFSA has been significantly simplified in recent years, requiring only prior year tax returns (2023 for current applications). But even with the easier process, families wonder if it’s worth the effort.
Here are three reasons you may still want to file:
1. Insurance Against Life’s Uncertainties
None of us can predict the future. While we certainly don’t wish for circumstances to change, life can go sideways for various reasons—job loss, medical emergencies, unexpected expenses.
If you’ve already completed the FAFSA early in the process, it’s on file and can be updated or used by colleges to adjust financial awards. This is far easier than scrambling to file during a crisis when the last thing your family wants to worry about is covering college costs.
Think of it as an insurance policy.
2. Required for Federal Student Loans
You must file the FAFSA to access federal student loans—both subsidized and unsubsidized.
I understand there are varying opinions about student loans. Some families set caps to keep debt manageable after graduation. Others avoid loans altogether. Some take the full amount available.
Wherever your family lands on this spectrum, know that the FAFSA is required to qualify for these loans.
3. Some Colleges Require FAFSA for Scholarship Money
This is less common but does happen: some colleges want the FAFSA on file to award merit-based scholarship dollars.
Important distinction: Scholarships are awarded based on merit or talent (academic, athletic, etc.). Financial aid is need-based, determined through FAFSA filing.
Why would colleges need FAFSA for scholarships?
- To understand the bigger picture of family contribution
- To see what families can pay according to FAFSA calculations
- To ensure families are exploring all funding avenues
- Because colleges are businesses managing their scholarship funds carefully
How to find out: Call the financial aid office directly at schools on your list. This information isn’t always available through Google searches.
Understanding Financial Aid vs. Scholarships
- Scholarships: Merit or talent-based awards
- Financial Aid: Need-based support determined through FAFSA
Additional Forms: CSS Profile
Some colleges (mostly private, plus a few state schools) require the CSS Profile in addition to FAFSA. Research your specific schools’ requirements.
Your Best Resource: College Financial Aid Offices
Financial aid offices are staffed with experts who work with aid and scholarship money daily. If you have questions, pick up the phone and call. This is the best way to ensure you’re maximizing opportunities and not missing critical steps.
Don’t hesitate to use this resource—they’re there to help families navigate the process.
The Bottom Line
Even if you’re confident you won’t qualify for need-based aid, filing the FAFSA provides:
- Protection if circumstances change
- Access to federal student loan options
- Potential scholarship eligibility at certain schools
Given the simplified process, the potential benefits often outweigh the time investment.
Have questions about financial aid, scholarships, or navigating the FAFSA process? Our team can help clarify requirements and ensure you’re not missing opportunities. BOOK A FREE CALL HERE for guidance.
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