One of the most important requirements in applying for and receiving federal financial aid is certainly demonstrating that the students is in fact in need of aid. While there is no specific cut-off income level for federal aid, families must be able to show that they are unable to afford the cost of tuition, room and board and other college expenses. It is this difference between the EFC, or estimated family contribution, and the cost of sending the child to college that will largely determine how much aid will be doled out. The amount of money given also depends heavily on the type of aid that is being received.
Another income requirement that must be taken into consideration for some aid sources is whether the prospective student files annually as an independent or a dependent. While sometimes overlooked, this can also be an important question to consider when filling out the FAFSA. As an independent, students can often receive more aid because it is assumed that they will not have the parental help that a dependent might get in paying for college. Particularly for funding sources such as the Stafford Loan, the student's status is taken into consideration in awarding aid. Regardless, of whether the student is a dependent or independent, they are still eligible for federal aid.
One other requirement that involves income and the FAFSA is reporting all earnings from parents as well as yourself. The assets and income that must be reported rely largely on whether you declare yourself an independent or dependent. If you are an independent who is married, you must report both yours and as well as your spouse's income. You are not required to provide income information for your parents. On the other hand, if you are a dependent, you must report your income as well as the parent who you live with or will be contributing the greatest amount of monetary support to your education. There is no cut-off for aid, however it is required that all information be provided in order to be considered for any federal assistance.