The Free Application for Federal Student Aid (FAFSA) is a form used by students and their families to apply for federal financial aid for college. The FAFSA formula is used to determine how much aid a student or family will receive. One of the most common questions asked is, “How much does FAFSA give based on income?”
The answer to this question depends on a variety of factors, including the student’s family size, the student’s age, and the family’s adjusted available income. The FAFSA formula takes into account the student’s family size, age, and income to determine the amount of aid the student or family will receive.
The FAFSA formula doesn’t expect students or families to use all of their adjusted available income to pay for college. The formula allocates 50 percent of a dependent student’s adjusted available income to cover college expenses and anywhere from 22 to 47 percent of parents’ available income. This means that the amount of aid a student or family receives will depend on how much of their adjusted available income they can use to pay for college.
The amount of aid a student or family receives also depends on the type of aid they are eligible for. For example, students may be eligible for grants, scholarships, work-study programs, and loans. Grants and scholarships are typically need-based and do not need to be repaid. Work-study programs are also need-based and provide students with the opportunity to work part-time to help pay for college expenses. Loans, on the other hand, must be repaid with interest.
In addition to the type of aid a student or family is eligible for, the amount of aid they receive also depends on the cost of attendance at the college they plan to attend. The cost of attendance includes tuition, fees, room and board, books and supplies, and other expenses. The higher the cost of attendance, the more aid a student or family may be eligible for.
Ultimately, the amount of aid a student or family receives through the FAFSA formula depends on a variety of factors, including the student’s family size, the student’s age, the family’s adjusted available income, the type of aid they are eligible for, and the cost of attendance at the college they plan to attend. By taking all of these factors into consideration, students and families can get a better idea of how much aid they may be eligible for through the FAFSA formula.