Everything you need to know about FAFSA applications

By Alex Klaus
Milwaukee Neighborhood News Service

The Free Application for Federal Student Aid, or FAFSA, opened for new and returning college and university students on Oct. 1. Students typically have until June 1 to apply for the best chance of receiving aid.

The form connects students with loans, grants and scholarships through the U.S. Department of Education and your higher education institution. 

Students considering attending a two- or four-year college or university should fill out the FAFSA form, even if they haven’t committed to a school or are unsure whether they will pursue higher education. 

Getting started

Carole Trone serves on the board for College Goal Wisconsin, an organization that hosts FAFSA completion events around the state. She said the FAFSA process usually runs smoother when parents let their student take the lead. 

“It works best if the student starts their part of the application and then hands it over to the parent,” Trone said.

Students should first make an account, called a Federal Student Aid (FSA) ID. If a student is a dependent, at least one parent or guardian will need to make a Federal Student Aid ID and contribute to the form.

The Department of Education requires students to provide a Social Security number to fill out the FAFSA form. Contributing parents without a Social Security number can make an account but will need to check a box certifying they don’t have a Social Security number.

When creating a Federal Student Aid ID, Trone said, it’s important to double check that all information, including names and dates of birth, are correct. The Department of Education won’t be able to verify your information if these details are incorrect, which Trone said complicates the process.

If students or parents already have a Federal Student Aid ID, Trone said the ID stays with them forever and they should use the same account.  

Filling out FAFSA

What do I need to fill out the form

FAFSA requires certain information from students and parents to verify income, assets and financial need.

The Department of Education will use applicants’ Social Security numbers to access their income with the Internal Revenue Service. Parents and students must give consent for the IRS to access information on their tax returns, even if an applicant doesn’t have tax returns to supply. 

The Department of Education recommends still having the most recent tax returns for information that isn’t imported from the IRS. 

The form also asks about assets – the current balance of cash, checking and saving accounts – and the net worth of any businesses and investments. 

Students will also need to provide a list of schools they’re interested in attending. Students should list all schools even if they aren’t committed. 

“The options that FASFA gives you is not just for four-year college, it’s for two-year college, it’s for a number of certification programs,” Trone said. “It doesn’t obligate you to anything.”

Types of aid

The types of federal aid you receive can be split into two main groups: loans and grants. The biggest difference is you need to pay back loans but not grants. Filling out your FAFSA form also helps you become eligible for need-based scholarships through your higher education institution.

Loans

You can make payments while enrolled at least part time (six credit hours, usually about two classes) in school but are not required to until after you graduate or go below six credit hours. After you do either of these, it triggers a six-month grace period before you’re required to make payments. 

The federal government offers several types of loans in two categories: Direct and Direct PLUS. 

The amount of interest on these loans depends on the year you take them out. The interest rate changes each year on July 1. 

Direct loans

Students can receive two kinds of Direct loans: subsidized and unsubsidized.

Subsidized loans mean no interest accumulates on the loan while in school or during your grace period, saving the student money in the long run. 

Unsubsidized loans accumulate interest beginning when the student takes out the loan. 

Direct PLUS

The Department of Education also offers Direct PLUS loans, which are federal loans that parents of dependent undergraduate students, graduate or professional students can use to help pay for school.

Parents of dependent students can take a Parent PLUS loan to support additional education costs that aren’t covered by other financial aid. 

This loan originally did not have a cap, but as a result of the “One Big Beautiful Bill Act,” Parent PLUS loans are now capped at $20,000 per year or $65,000 over the course of an undergraduate school career.

Graduate PLUS loans, which were used to support graduate school education, will be eliminated starting in the 2026-27 school year. 

A new unsubsidized loan program is replacing Graduate PLUS. Students can borrow up to $20,500 annually, up to $100,000 over the course of graduate school. Students attending professional schools like medicine or law will be eligible to take out higher loans. 

Grants

Pell grants: Students in need of a lot of financial aid might qualify for a Pell grant. Unlike loans, these do not have to be repaid. 

The One Big Beautiful Bill Act expanded Pell grant eligibility to shorter workforce training programs. 

Financial need

The amount of aid you receive depends on your financial need. 

After a person submits a FAFSA form, the Department of Education considers several factors like income and other assets and generates a Student Aid Index that determines your financial need. The lower your Student Aid Index, the greater chance of receiving more aid. 

Colleges and universities look at factors like a student’s Student Aid Index, how many credits are being taken and tuition costs to decide how much aid a student will receive. 

Private loans?

Universities and advocates alike caution against using private loans whenever possible because of concerns about predatory lending, potentially high interest rates and a lack of repayment options and forgiveness.

Interest rates and other conditions of the loan often vary on factors like credit scores. If you need to take out a private loan, try to look at offers from several lenders to pick the best one. 

Where can I go for help?

College Goal Wisconsin is hosting events virtually and in several Milwaukee high schools to help students and parents complete the FAFSA form. Any students looking for help with a FAFSA form can attend, even if they don’t attend MPS. 

Trone said each student who attends is eligible to win one of 15 $1,000 scholarships.

Families who can’t make it to a help session can use resources on the College Goal Wisconsin website or the FAFSA YouTube page, Trone said.

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Upcoming events in Milwaukee

Veritas High School: Monday, Oct. 13

6 p.m. to 8 p.m. at Veritas High School, 3025 W. Oklahoma Ave. Register here.

Riverside University High School College and Career Center: Tuesday, Oct. 14

6 p.m. to 8 p.m. at Riverside University High School, 1615 E. Locust St. Register here.

Virtual FAFSA Completion Event: Wednesday, Oct. 15

6 p.m. to 8 p.m. virtually. Register here.

Virtual FAFSA Completion Event: Wednesday Oct. 22

6 p.m. to 8 p.m. virtually. Register here.

South Division High School College and Career Center: Thursday, Oct. 23

6 p.m. to 8 p.m. at South Division High School, 1515 W. Lapham Blvd. Register here.

Milwaukee School of Languages College and Career Center: Wednesday, Oct. 29

6 p.m. to 8 p.m. at the Milwaukee School of Languages, 8400 W. Burleigh St. Register here.

Virtual FAFSA Completion Event: Wednesday, Oct. 29

6 p.m. to 8 p.m. virtually. Register here.

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Jonathan Aguilar is a visual journalist at Milwaukee Neighborhood News Service who is supported through a partnership between CatchLight Local and Report for America.

This article first appeared on Wisconsin Watch and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.