Federal Student Aid (2024)

FAQs

Do parents who make $120000 still qualify for FAFSA? ›

Basically, there is no set income cutoff for aid. If you still think your parents are too wealthy to access financial aid, consider using either the Federal Student Aid Estimator or your school's net price calculator.

Both students and their parents often think their household income makes them ineligible for financial aid. However, there's no income limit for the FAFSA, and the U.S. Department of Education does not have an income cap for federal financial aid.

Not maintaining satisfactory progress at your college or degree program. Not filling out the FAFSA each year you are enrolled in school. Defaulting on a student loan.

Financial Aid Cutoffs

There are no set income cutoffs for financial aid because of the number of factors that are included in the need-based calculation beyond income. Unless parents are in a situation where they don't need money for their child to go to school, everyone should fill out the FAFSA.

There are no income limits on the FAFSA. Instead, your eligibility for federal student aid depends on how much your college costs and what your family should contribute. Learn how your FAFSA eligibility is calculated and other ways to pay for college if you don't qualify for federal student aid.

Apply for scholarships and grants

Unlike student loans, college scholarships and grants don't have to be repaid — which makes them a great way to pay for school. There's no limit to how many scholarships and grants you can get, so it's a good idea to apply for as many as you can.

What are the FAFSA income limits? A common myth is that students from high-income families won't qualify for FAFSA funding. In reality, there's no maximum income cap that determines your eligibility for aid. Although your earnings are a factor on the FAFSA, only some programs are based on need.

Did You Know? There is no income cut-off to qualify for federal student aid. Many factors—such as the size of your family and your year in school—are taken into account.

Request a Reevaluation of Your Circ*mstances

Sometimes a family's finances are not accurately reflected on the FAFSA^® form because of changes that have occurred, such as job loss/reduction, divorce or separation, or other special circ*mstances.

Can FAFSA pay full tuition? ›

Federal student aid from ED covers such expenses as tuition and fees, housing and food, books and supplies, and transportation. Aid can also help pay for other related expenses, such as a computer and dependent care.

It's best to apply as close to the opening date, October 1, as possible. Federal Student Aid, the government provider of student financial assistance in the US, hands out grants, loans, and more on a “first-come, first-served” basis, meaning there's more money to work with at the very start of a new FAFSA cycle.

In most cases, you won't have to verify income and tax information. However, if you are selected for verification, the school may ask you to submit a tax transcript or other documentation to confirm the information you reported.

Verification doesn't necessarily check the student's or parent's bank accounts. Rather, the school will ask for documentation to clarify information provided in the form. These documents can include income tax returns, W-2 forms, and 1099 forms.

There are a few common reasons why the Federal Processor will reject an application: Missing signatures, inconsistent marital status with income, taxes paid are equal to or higher than adjusted gross income, citizenship questions are blank, marital status and family members blank, etc.

A student age 24 or older by Dec. 31 of the award year is considered independent for federal financial aid purposes.

Your family's taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) all could be considered in the formula. Also considered are your family size and the number of family members who will attend college or career school during the year.