FAFSA Myths Debunked: How to Apply for Financial Aid
Use the FAFSA to apply for financial aid and discover federal work-study eligibility, low-interest student loans, and scholarship opportunities.
The FAFSA is changing! An updated application is available now, making applying for federal student loans will be easier, faster, and more accessible for those who need it most. Discover more financial aid options by checking out Pacific’s available financial aid and scholarships.
In 2022, roughly 18.6 million students completed the Free Application for Federal Student Aid (FAFSA), beginning a process that makes college more affordable for more people through federal student loans.
The FAFSA is the first step in the financial aid timeline, and submitting it early can open up funding options beyond just student loans, including work-study, specialized scholarships, and grants.
Still, completing the application can at times be a confusing process, and getting the answers you need can be difficult.
Let us be your guide through some common questions about the FAFSA so that you can tackle this year’s updated application with ease.
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If I already have scholarships, should I still fill out the FAFSA?
YES!
Even if you already know how you are going to pay for college — whether through scholarships, private loans, or employee reimbursement — you should still complete the FAFSA as it can enable benefits you may not be aware of.
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Submitting the FAFSA is the only way to make yourself eligible for Federal Work-Study programs at your school.
These part-time jobs, designed to fit around your class schedule, are available only once your FAFSA has been completed.
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Certain need-based scholarships are only available to students after they have submitted their FAFSA.
Pacific Grants is just one of a handful of funding options available for qualified students that are predicated on completion of the FAFSA.
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Scholarships and other financial aid options can become available to you only after having completed the FAFSA.
Your eligibility for certain scholarships is determined by FAFSA results, meaning potentially more funding for your education.
What is a Pell Grant?
A Pell Grant is a sum of money, distributed by the government, given to students who meet the requirements for federal financial aid and who have not yet completed their bachelor’s degree.
Importantly, Pell Grants are not loans, and thus do not need to be repaid after graduation.
There are many aspects of Pell Grant eligibility — and they can change between application cycles — so it’s best to check with your school’s office of financial aid or explore the current governmental requirements.
Only incoming freshmen need to fill out the FAFSA.
FALSE!
In order to receive federal student aid throughout college (including Pell Grants and Federal Work-Study appointments) a new FAFSA must be submitted every academic year.
Failing to fill out the FAFSA could result in a loss of aid for the upcoming school year.
Only public schools accept the FAFSA.
FALSE!
While the funds are distributed by the federal government, both public and private nonprofit colleges use the FAFSA to distribute financial aid.
Pacific, a private university, makes use of the FAFSA to identify students who may be eligible for grants and need-based scholarships.
Also, Pacific uses FAFSA data to help place applicants into Federal Work-Study programs where they can earn money while they study.
If I am offered a federal loan, do I have to take it?
NO!
Completion of the FAFSA is not mandatory, and accepting federal student loans is optional.
Once you are informed of your loan amount, you can choose to accept all, some, or none of what is offered.
Interest rate too high? Amount too low? Don’t worry, you can decline the offer and submit again next year without consequence.
And since the FAFSA is a totally free service funded by the federal government, it means there is no risk when it comes to filling one out in order to see what student financial aid you may be eligible for.
My family’s income disqualifies me from getting financial aid.
FALSE!
The FAFSA estimates your financial aid eligibility based on something called the Student Aid Index (SAI), a figure created from your family's wealth responses on the FAFSA.
So, what is the wealth limit for the FAFSA?
In short, there isn’t one. Anyone, from any income bracket, can submit a FAFSA and be offered assistance from the federal government.
What changes is the amount: the higher the wealth (which includes assets, investments, and holdings), the lower the funding amount that the government will offer.
I’m too close to the school year starting. I can’t submit a FAFSA.
FALSE!
Many schools require submitting your FAFSA before a priority deadline to be considered for Federal Work-Study and some scholarships (for Pacific this is often March 1 of the current application cycle).
However, you can submit your completed application as late as June 30 (per the ‘23-’24 school year) and still be considered to receive federal student loans.
These deadlines vary between states and schools, so make sure you check your school’s dates soon after the FAFSA opens on December 1.
To learn more about this year’s FAFSA, and to learn how Pacific uses your application to help distribute aid packages, connect with the experts at our Office of Financial Aid.