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FAFSA aid with limited pools of money available, like scholarships and grants, is often first come, first served.
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Some less desirable aid from the FAFSA, like loans, don’t have a limited amount of funds available.
You should file the FAFSA as early as possible to be considered for the most scholarships and grants.
Work-study funds may also be limited based on the amount of money your school has for positions.
The Free Application for Federal Student Aid, or FAFSA, is a form that helps the government and your college determine how much financial aid to offer you. This aid can come in the form of grants, scholarships, work-study, and loans.
When should I apply to the FAFSA?
You should fill out the FAFSA as soon as possible after it opens — even if you don’t think you qualify for aid — as some aid is first come, first served. There are no set FAFSA income limits or cutoffs that determine eligibility for financial aid. Some forms of assistance, like unsubsidized loans, aren’t based on financial need.
The FAFSA is currently available until June 30, 2023, for the 2022-23 school year, and the FAFSA for the 2023-24 school year is open until June 30, 2024. The FAFSA application is open for about 20 months, and you can receive money for a school year retroactively. But the later you apply, the more likely you are to miss out on forms of aid you don’t have to repay.
What types of aid from the FAFSA run out the fastest?
In general, aid will always be available to you. However, the type of aid you’re offered may differ depending on when you apply for the FAFSA. Here are the types of financial aid you can receive:
Grants: Grant funds are limited and generally go the most quickly of all the types of aid. They are often given based on exceptional financial need or if you belong to a designated group. Unlike most grants, funding for Pell Grants does not run out over the course of a year as the government provides enough funds each year to pay the Pell Grant amounts for all eligible students. Learn more about types of federal grants.
Scholarships: Generally, scholarships also have a finite pool of money available and are often awarded based on athletic achievement, academic merit, or volunteering. For instance, a school may have a limited amount of money spread across all of its sports teams to spend on scholarships or a few awards for high-achieving students in a certain field. Financial need is usually not taken into account.
Work-study: Work-study is a type of financial aid that provides part-time positions for students with financial need to earn money for academic expenses. Your total package is based on when you apply, your level of financial need, and the amount of money your school has available. The pool of jobs you can find might shrink as more people accept work-study offers.
Loans: Loan funds are always available and are not distributed on a first-come, first-served basis. Direct Subsidized Loans are offered to students with financial need, and the government will pay the interest on the loans while you’re in school and throughout a six-month grace period after you graduate. Direct Unsubsidized Loans aren’t offered based on financial need, and interest will accrue once loan funds are given out.
Simply put, the earlier you submit the FAFSA, the higher likelihood that you will receive more desirable types of financial aid. If you wait to complete the FAFSA, you may end up with increased loan money in your aid package rather than grants, scholarships, or work-study.