What does the Free Application for Federal Student Aid (FAFSA) determine?

The Free Application for Federal Student Aid (FAFSA) is a critical tool for students seeking financial assistance for their education. Completing the FAFSA allows the federal government, and many states and colleges, to assess a student’s financial situation and determine their eligibility for various forms of financial aid. This includes federal grants, work-study opportunities, and federal student loans.

When students fill out the FAFSA, they provide essential information regarding their family's income, assets, and other financial factors. This information is used to calculate the Expected Family Contribution (EFC), which helps institutions decide how much financial aid a student qualifies for. Therefore, the primary function of the FAFSA is to establish eligibility for financial aid, making it an essential step for anyone looking to fund their higher education through financial assistance programs.