The U.S. Department of Education (ED) uses the FAFSA to verify whether or not a student is qualified to receive financial aid, grants, loans and other types of assistance to help pay for college.
The ED uses FAFSA information (applicant’s assets, income, family size and other factors), the Cost of Attendance (COA) and the Expected Family Contribution (EFC) formula to determine how much aid each student should receive.
Applicants who have defaulted on student loans or owe money on federal grants are not eligible to apply for aid through the FAFSA (see Reference 2).
Information from the FAFSA helps determine a student’s eligibility for a Pell Grant for which there is an annual family income requirement of up to $50,000 (see Reference 3).
Students should contact their financial aid administrator or the Federal Student Aid Information Center if they have any questions about the FAFSA.