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FAFSA: To file or not to file?

Writer: Agather College Consulting
Agather College Consulting
Oct 6
6 min read

Updated: 1 day ago

10 Reasons the Answer Is Probably to File!


ACC Senior Parent Tips - Agather College Consulting


Every fall, parents ask whether they should file the FAFSA, especially if they think their income is too high or they don't want access to federal loans. For most families, there are more reasons to file than not to file.


True Story: Years ago, I had two students apply early decision. Weeks after applying, both students lost the families’ sole breadwinner. One family had filed financial forms while the other had not. Needless to say, navigating financial aid was much easier and more seamless for the student who had already filed the forms. I will never forget sitting in a financial aid office with the student whose sole parent had not filed the forms. It was heartbreaking and a painful process that could have been prevented. 

What Is the FAFSA?

The Free Application for Federal Student Aid (FAFSA) is used to award federal grants, student loans, and work-study. Many states and colleges also use it to determine eligibility for their own aid. It is free, and filing does not require you to accept aid.

Top 10 Reasons to File the FAFSA

1. Life happens—your finances may change in the blink of an eye.

Job loss, medical expenses, divorce, or other changes can affect affordability. If circumstances change, having the forms filed can make the process easier. While filing alone doesn't guarantee additional institutional aid, it can serve as a future insurance policy and an act of love.

2. A student may qualify for unexpected aid.

Eligibility depends on your circumstances, the college, and the type of aid. During COVID, some colleges dispersed grants to students who had filed the FAFSA.

3. Federal student loans are offered to all students and are a great way to give a student “skin in the game” and increase their credit score when they make on time payments.

All dependent first-year undergraduates can borrow up to $5,500 in an unsubsidized federal loan. Borrowing and repaying any amount can help a student build a strong credit rating. 

4. Some colleges/scholarships require the FAFSA.

A few colleges require FAFSA submission for institutional scholarships. Check each school’s rules. Some require it before considering you for merit aid, and some require before the disbursement of merit aid. Why? Because colleges want students to leverage federal/state funds before they provide their limited college funds. 

5. You may qualify for state aid.

Many states use FAFSA information for grants and other programs. I have seen middle-upper-class students get a North Carolina grant because multiple siblings were in college at the same time.

6. Demonstrating a family’s financial strength (ability to easily pay) is never a bad thing.

Colleges need families who can pay in full. Sometimes they will offer admission to a full-pay student over a student with significant need. Additionally, a college may offer a full-pay student merit aid to entice the student to attend knowing the family has significant financial strength. 

7. Filing does not mean accepting loans—it just gives you the option to take out typically the best loan available: the federal student loan.

You can review an offer and decline loans you do not want. The federal student loan is often the only loan available that does not require a co-signer and defers payment (not interest) until after the student graduates.

8. Filing the FAFSA is free and relatively easy to file, plus it can be helpful in a future appeal.

There is no fee to complete the FAFSA, and colleges often review whether a student filed financial forms in any appeal. If a student is asking for more aid from a college, most colleges expect the student to be using self-help aid (loans).

9. Filing financial forms with a college can signal demonstrated interest.

Some colleges view filing as demonstrated interest. As colleges receive more and more applications, demonstrating interest can be helpful.

10. Filing the FAFSA is a graduation requirement in some states.

A few states require the FAFSA to be filed as a graduation requirement although the requirement can be waived. Even if you expect to pay for college without assistance, filing lets you explore federal, state, and institutional aid you may qualify for now or later.

Note: Most families pay for college with current income, savings, and future income (loans).

When Should We File?

For students entering college in fall 2027, the 2027–28 FAFSA is available now. Aim to complete all financial forms by November 1st or check with each college on the student’s list. Use your 2025 tax forms to file for the 2027/28 school year.

What About the CSS Profile?

The College Board’s CSS Profile is a separate application used by ~250 participating (mostly private) colleges, including UVA, Elon, and UNC Chapel Hill, for institutional financial aid. Some require both the FAFSA and CSS Profile. Be aware the CSS Profile requires more detailed financial information, often including information from a noncustodial parent. Fees generally apply, with waivers for eligible applicants. Always check each college’s requirements. Unlike the FAFSA, which is simple to complete, the CSS Profile typically takes a few hours.

Frequently Asked Questions

We really do make a lot of money! Should we file?

If you have a 529 plan or another account with enough money to cover 4+ years of college and you don’t want to potentially show the college your financial strength, it may make sense for your family not to file. However, there is no universal income cutoff for all aid, and a few institutional awards require the FAFSA. Additionally, some colleges (Wake Forest and Eckerd) will never give need-based aid if a student does not file at the time of applying, even if the student’s financial situation changes.


Could filing the FAFSA or CSS Profile hurt admission chances?

Some colleges consider financial need for certain applicants, typically students on the margin. If a student has a lot of need and does not have a high academic profile for that college, filing can potentially hurt the student. Yet, if a student has significant need, they should always file forms.


Do both divorced parents complete the FAFSA?

No. The parent who provided more financial support during the previous 12 months is the FAFSA parent (contributor). CSS Profile typically requires both biological parents to file.


What if our finances changed since our taxes?

Submit the required tax-year information, then work with each college’s financial aid office to submit a professional judgment. Be aware that sudden job loss rarely results in a college automatically giving you aid. Colleges will need extensive documentation, including severance packages, and time to process the new information. Colleges may require a specific amount of time to pass after a job loss and expect the parent to actively seek new employment.


Must we file each year?

Generally, yes, for each academic year you want federal student aid. Colleges may also require you to file the CSS Profile again. 


Can we wait until admission?

While it is typically best to file early, some families may choose to wait if they feel their student is on the margin and/or they only want to access federal loans. Families can also complete the form and leave a specific school off if they are concerned about impact. However, if your student could need aid at any time during their college career, it is best to file all forms early.


Must we accept loans?

No. You can decline offered loans and/or accept a lower amount. 


What if our student receives merit aid?

Check the scholarship terms; some awards require FAFSA submission to disburse aid.


Do we need to submit both the FAFSA and CSS Profile?

Only if the colleges require both. Review the current list of CSS Profile participating schools. Some colleges also have their own financial forms. 


How should a student answer the question on the Common App if they are applying for financial aid? 

Read the question and answer it honestly. Most ACC students say “no” for need-based aid for FAFSA-only colleges. Some say "yes" for expensive private colleges that require the CSS Profile. If a student says "yes" they are filing forms, they should file on time or notify the college if they are not going to file.


What are your tips for filing?

Always run Net Price Calculators (NPC) at every college but know they are only directional and not typically accurate. Many private colleges believe if they are within $5k of the annual cost, it is accurate enough. 


FAFSA: 

  • Student and contributor parent need FSA IDs to file.

  • The student should file first and invite the parent.

  • Do not report any retirement accounts or the value of the family home.

  • Do not report the value of sibling or grandparent 529 plans.

  • Do not report family-owned businesses with fewer than 100 employees.

  • Check data twice and submit early. 

  • Here is a great step-by-step video for FAFSA.

  • Check out this easy FAFSA guide.


CSS Profile:

  • Be prepared to provide a full accounting of ALL of your assets.

  • Be honest yet answer only the questions asked; withhold unusual information for a later appeal.

  • Each school will decide how to account for your assets in accordance with school policy.

Helpful Official Resources

Final Thoughts

Tragically, I heard a story of an UNC student who lost both of his parents in a car accident after being dropped off at college. My heart broke for the student, and I can’t imagine what the student went through afterward. It reinforced why filing forms is an insurance policy and can be a future act of love. 


Calm is contagious, and knowledge is power. 



Bottom line: More reasons to file the FAFSA than reasons not to.
Bottom line: More reasons to file the FAFSA than reasons not to.

 
 
 

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