In most cases, college- or vocational school-bound students are required to complete an FAFSA whether they're seeking financial assistance.
The results of the FAFSA indicate a student's eligibility for federal subsidized Stafford loans, federal Pell grants, Perkins loans, federal supplemental educational opportunity grants, work-study programs and other institution-based aid.
To qualify for FAFSA aid, a student must be a U.S. citizen or eligible noncitizen, have a valid Social Security number, have a high school diploma or GED, be enrolled or accepted into an eligible program, and demonstrate financial need.
The U.S. Department of Education oversees the FAFSA and calculates a student's awards based on his Expected Family Contribution (EFC). The EFC formula is based on a student's financial data, including income, assets, status and additional household information.
Once the FAFSA is processed, results are transmitted to the financial aid offices of the schools you list on your application. This is known as an Institutional Student Information Record (ISIR) or a Student Aid Report (SAR).