How to Apply for Financial Aid
January 24, 2025
If you are the parent of a college-bound teen, you鈥檝e likely spent at least a few sleepless nights fretting about the subject of paying for college. If it is any comfort, you are far from alone. Every single year, college students in the U.S. miss over 3.5 billion dollars worth of aid that could have easily been obtained had they taken an hour to fill out a bit of paperwork. That鈥檚 right鈥攄ue to misassumptions about how financial aid works or sheer intimidation, countless college-bound students (as high as 44%) forgo submitting a FAFSA altogether. If you’re wondering how to apply for financial aid, you’ve come to the right place.
How To Apply for Financial Aid
Becoming a master of the financial aid game is a significant challenge. It requires a smart consumer mindset, a nuanced understanding of your child鈥檚 value in the higher education marketplace, and a fair amount of research. However, the most important thing you can do is relatively straightforward, and it begins with familiarizing yourself with two forms: the FAFSA and the CSS Profile. Toward the aim of demystifying these two critically important documents, we will address the following:
- FAFSA basics
- CSS Profile basics
- FAFSA and CSS Profile deadlines
- How long it takes to fill out the FAFSA and CSS Profile
- How the FAFSA determines eligibility
- How the CSS Profile determines eligibility
- Changes to the FAFSA for 2025-26
We begin by cordially introducing you to your new best friend, who might just help you unearth tens of thousands of dollars of tuition money鈥攖he FAFSA.
How to Apply聽for Financial Aid – Introduction to the FAFSA
Filling out a FAFSA (Free Application for Federal Student Aid) is the most important step in financing a college education. Using a strict formula, the federal government uses the FAFSA application to award Pell Grants, Supplemental Educational Opportunity Grants, Perkins Loans, Stafford Loans, and Federal Work-Study jobs to families that present a financial need. Yet the scope of the FAFSA goes beyond the procurement of federal aid; it is also used by states as well as colleges and universities to determine need-based eligibility. Submitting a FAFSA form is absolutely free and every single college-bound senior should submit one.
How to Apply for Financial Aid – Introduction to the CSS Profile
Often less understood is the College Scholarship Service Profile (CSS Profile), an additional form that is required by over , including many of the most highly selective schools in the country. Applicants seeking private, institutional-based funding from CSS member schools must endure a more thorough examination of their family鈥檚 financial assets and financial standing.
Unlike the FAFSA, you actually have to pay for each CSS Profile submission. Your first Profile can be sent for $25 鈥� each subsequent submission will cost you $16. Yet, this is a small price to pay when considered against the substantial aid it can help to secure.
FAFSA and CSS Profile Due Dates
Both the FAFSA and CSS Profile are available beginning October 1st of each year and, while you technically have until June 30th to get this completed, there is absolutely nothing to be gained by procrastinating. We advise families to submit the FAFSA as early as possible, as research has consistently demonstrated that students who submit their FAFSA earlier fare far better financially than those who wait.
State Deadlines
It鈥檚 essential to understand that the FAFSA isn鈥檛 solely used to procure federal funds like Pell Grants or Perkins Loans but also for determining eligibility for state funds. Certain states, including North Carolina, Vermont, and Illinois, have first-come, first-served policies. This means that those who apply closer to October 1st will get first dibs on the finite amount of available scholarship money allocated by their home state. Many other states, even those that are not first-come, first-served, still possess much earlier deadlines than the June 30th federal deadline. .
College Deadlines
Additionally, eligibility for institutional need-based aid, granted by the colleges themselves, is also determined through the FAFSA or CSS Profile. Colleges and universities set their own 鈥減riority deadlines鈥� for consideration that are typically much earlier than the federal deadline. By submitting your FAFSA and/or CSS Profile early, you have a better chance at netting generous aid offers from prospective colleges and, of equal importance, you and your teen will have ample time to comparison shop before you commit to an undergraduate institution.
Priority deadlines set by individual colleges vary greatly, and those applying Early Decision will typically be required to submit financial aid paperwork extremely early. For example, Duke University sets its priority deadline at February 1st for regular applicants and November 4th for those applying early. Purdue University has a later deadline of April 15 but has an earlier deadline of February 2nd for those seeking need-based scholarships.
See our Dataverse for a complete list of school-specific financial aid deadlines.
How long will it take to fill out the FAFSA and CSS Profile?
FAFSA
Filling out the FAFSA has never been quicker and more painless. Under the newly revamped system, parents can provide tax information from two years prior to when their student is slated to start college. For example, parents with teens starting college in the fall of 2025 can submit their tax info from 2023. This greatly simplifies the process.
You can further streamline things by utilizing the IRS Data Retrieval Tool to automatically plug in your essential info. Since this comes directly from the IRS, it doesn鈥檛 need to be verified or double-checked. Therefore, you won鈥檛 have to waste time submitting hard copies of your tax returns to prospective colleges. The U.S. Department of Education estimates that filling out the form online will take you an average of 55 minutes to complete.
CSS Profile
The CSS Profile can take a bit longer as it digs deeper into your financials (more on that in a moment). If you are self-employed and/or hold a variety of complex assets, extra time will be necessary. Most families can plan on one to two hours.
How does the FAFSA determine eligibility?
The FAFSA’s processing system looks at income, assets, and family size to determine one’s Student Aid Index (SAI), which can range from -1500 to 999999. This number is not the amount that students will be expected to contribute. Rather, it is an index number that helps determine what a family may be able to pay.
Considered assets include:
- Money in checking and savings accounts
- Value of a second home or commercial property
- Stocks, bonds, securities, mutual funds, etc.
- Money in 529 Savings Accounts
- Any other savings in a child鈥檚 name (which are counted against your SAI at a much higher rate).
Assets NOT included in the FAFSA calculation include:
- Retirement plans (401k, IRA, pension, etc.)
- Life insurance
- Your primary residence
How does the CSS determine eligibility?
The exact eligibility requirements differ by institution but, in general, all of the assets looked at by the FAFSA are also included when CSS member schools determine a family鈥檚 expected contribution. In addition, the following assets鈥攚hich are not factored in by the FAFSA鈥攁re typically considered in the CSS Profile:
- The amount of home equity in your primary residence
- Retirement accounts
- Non-custodial parent financials
- The value of a family-owned small business
To prepare, we recommend having records handy on the following:
- Retirement accounts
- Detailed business records (for the self-employed)
- Life insurance policies
- Mortgage information for calculation of home equity
- Any other investment information (stocks, bonds, etc.)
- Family medical costs
FAFSA Changes: 2025-26
In 2024-25, a series of major changes to the FAFSA were implemented. The most significant change was the formula used to calculate financial aid. Accordingly, the Student Aid Index (SAI) replaced Expected Family Contribution (EFC). The new SAI is supposed to provide a more accurate assessment of what each family will be capable of contributing. Unlike the EFC, the SAI can also be a negative number, better highlighting families with the greatest level of need.
The 2025-26 FAFSA will be very similar to the 2024-25 version, along with the following updates:
- The new parent wizard tool, “Who Counts as a Parent on the FAFSA Form?” will make it easier for students and their families to fill out forms as accurately as possible.
- An updated estimator tool will more accurately predict SAI.
- The form will now provide confirmation of whether a student/family’s information was successfully matched with IRS records.
Final Takeaways 鈥� How to Apply for Financial Aid
There are plenty of details, nuance, and fine-print information that you need to grasp in order to maximize your financial aid opportunities. But in terms of big-picture takeaways, the 国产第一福利影院草草 team suggests the following:
- Whether you鈥檙e a millionaire or living paycheck-to-paycheck, fill out a FAFSA.
- If one or more of your prospective colleges requires the CSS Profile, submit those accordingly.
- Remember that a FAFSA isn鈥檛 just for federal aid, but is also needed for eligibility to receive state and institutional funding.
- Pay close attention to state-set and school-specific deadlines for FAFSA and CSS Profile submission.
- Studies have shown that those who apply earlier obtain significantly more aid than those who wait. The window opens October 1st鈥攄on鈥檛 procrastinate!
Looking for additional financial aid resources? Consider checking out the following:
