FAFSA – how to apply (2026), financial aid, Pell Grant, loans, ITIN parents

What is FAFSA and why you need to fill it out

FAFSA (Free Application for Federal Student Aid) is the only way for college students to receive federal financial aid. It is also required for:

• Most state grants and scholarships
• Most private scholarships
• Institutional aid at most schools
• Federal Work-Study (on-campus work with federal funding)
• Federal student loans (Stafford, Plus)

Myth: "We are too wealthy to receive aid." Often false.

• FAFSA also provides access to Stafford Loans regardless of income (with limits)
• Some state scholarships are independent of income
• Filling out FAFSA takes 30-60 minutes – no cost
• Not filling it out leaves money on the table

What you get through FAFSA

1. Pell Grant – the most valuable

• Federal grant – NOT repayable
• Up to $7,395/year (2024-25)
• Only for undergraduates (Bachelor's level) without a Bachelor's degree
• Eligibility is based on SAI (Student Aid Index) – starting 2024-25 it replaced EFC
• Full Pell: SAI <= -1,500 USD (very low income)
• Partial Pell: SAI up to approximately 7,000 USD (lower-middle income)
• You can receive Pell for a maximum of 12 semesters (6 years full-time)

2. Federal Subsidized Stafford Loan

• Loan up to $5,500-$7,500/year (depending on year in college)
• Subsidized = the government pays interest while in school
• Interest rate 6.53% (2024-25, fixed federal rate for undergraduates)
• Eligibility: financial need (as demonstrated by SAI)
• Repayment begins 6 months after graduation

3. Federal Unsubsidized Stafford Loan

• Loan up to $12,500/year (after adding subsidized; single types)
• Unsubsidized = interest accrues from the day of borrowing
• Independent students (not reporting parents) can take more (up to $20,500)
• No need-based requirements – anyone filing FAFSA can apply

4. Federal Work-Study

• Part-time work on campus with federal funding
• Typical earnings $12-$18/hour
• 10-20 hours/week
• Need-based
• Earnings do not count towards income on FAFSA for the next year

5. Federal Plus Loan (for parent or graduate student)

• Loan for a parent of a dependent student or a graduate student
• Higher interest rate (~8-9% currently)
• Cap = cost of attendance minus other aid (significantly higher limits)
• Requires credit check (moderate – an endorser can help)
• Parent is responsible for repayment (not the student)

6. State aid

FAFSA automatically sends data to the state financial aid agency. Examples:

• NY – TAP (Tuition Assistance Program), Excelsior Scholarship
• NJ – TAG (Tuition Aid Grant)
• CA – Cal Grant
• FL – Bright Futures
• GA – HOPE Scholarship

7. Institutional aid

The college uses FAFSA + sometimes CSS Profile to calculate its grants and need-based aid.

FAFSA – key dates (cycle 2025-26 – for academic year fall 2025 – spring 2026)

Date	What happens
October 1, 2024	FAFSA 2025-26 opens
June 30, 2026	Federal deadline for FAFSA 2025-26
Earlier (January 1-31, 2025)	Most state deadlines
Earlier	Many college deadlines (priority dates)

FAFSA 2026-27 opens on October 1, 2025, deadline June 30, 2027.

Rule: Fill out FAFSA as soon as possible after it opens. Many aids are "first-come-first-served" – those who apply first receive aid.

How to fill out FAFSA – step by step

Pre-requisites – what you need

1. FSA ID – student + each parent contributor filling out the application. Create at studentaid.gov.
2. Social Security Numbers of the student and parents (or ITIN for the parent – okay from 2024)
3. Federal tax returns from the prior-prior year (for 2025-26 cycle = tax year 2023)
4. Bank statements
5. Records of investments (if any)
6. List of colleges the student is considering

Filling out

1. Go to studentaid.gov
2. Log in with FSA ID
3. Click "Start FAFSA"
4. Student and parent have separate sections – each logs in with their FSA ID
5. Import tax data from IRS (Direct Data Exchange) – remaining step from 2024-25
6. Add colleges (up to 20 schools)
7. Sign electronically with FSA ID
8. Submit

SAI (Student Aid Index) – starting 2024-25 replaced EFC

SAI is a number that FAFSA calculates from your income and assets, representing how much the family can contribute to education.

• SAI -1,500 USD (lowest): maximum Pell Grant
• SAI 0: full Pell + subsidized loans
• SAI 3,000-5,000: partial Pell
• SAI 7,000-10,000: no Pell, but Stafford okay
• SAI 30,000+: high-income family, no need-based

Net price = Cost of Attendance – SAI = how much the college "expects" you to pay after aid. In practice, the college may give more (if "meets full need") or less.

Immigration status – who qualifies

Student

The student must be:

• US citizen, or
• US national, or
• US permanent resident (LPR), or
• Refugee/asylee/parolee/Cuban/Haitian, or
• T-visa victim of trafficking

DACA and undocumented students do not qualify for federal aid. However, they may qualify for:

• State grants (in states like CA, NY, NJ, IL, WA)
• Private scholarships (many available for undocumented)
• Institutional aid (college's own funds)

For undocumented – the equivalent of FAFSA are state forms (CA Dream Act application, NY DREAM Act, etc.)

Parent with ITIN – UPDATE 2024

Until 2024, a parent without an SSN (with ITIN) had difficulty filling out FAFSA – they could not create an FSA ID. This created a barrier for many Polish/immigrant families with US citizen children.

From 2024-25 FAFSA: ITIN holders can create an FSA ID. It requires manual verification (knowledge-based authentication through Equifax) – it may take days to weeks. After this, the process is normal.

This is a key change – an undocumented OR ITIN parent can now fill out FAFSA for a US citizen child.

Dependent vs Independent student

Most undergraduate students are dependent – FAFSA requires parent income.

Independent if (any of the following):

• 24+ years old
• Married
• Graduate student (master's, PhD)
• Veteran or active military
• Own child or dependent
• Foster youth or previously in court
• Homeless or in difficult family situation (homeless youth determination)
• Emancipated minor

Independent – you use only your income, not your parent's. This dramatically lowers SAI for most students.

Very wealthy family + independent child – the child may be independent (e.g., emancipated minor), but colleges often require CSS Profile or their own calculation, in which the parent still counts.

CSS Profile – for private schools

FAFSA is federal. Many private colleges (200+) additionally require CSS Profile (College Scholarship Service Profile) – a more detailed application for financial aid.

• Asks about home equity, business, other assets not counted in FAFSA
• Often considers income of non-custodial parent (from divorced parents)
• Costs $25 for the first college, $16 for each additional (fee waivers for low-income)
• Requires separate filling out

FAFSA – common mistakes by Polish families

1. "I have too high an income"

FAFSA provides Stafford Loans regardless of income. Some state grants do too. Not filling out leaves money on the table.

2. "I own a home"

Primary residence does NOT count in FAFSA as an asset. The home is NOT included.

3. "I have an IRA / 401k"

Retirement accounts do NOT count as assets in FAFSA. 401k, IRA, 403b – exempt.

4. "Student income will hurt me"

The first ~$9,000 of student earnings are exempt. Beyond that, counted at 50%, vs. parent's 22-47%.

5. "I don't have an SSN"

From 2024, ITIN parents can fill out FAFSA. The student must have an SSN.

6. "Divorce complicates things"

The custodial parent (with whom the child lives > 50% of the year) fills out FAFSA. The non-custodial does not. CSS Profile MAY require non-custodial.

After FAFSA – what happens

1. FAFSA processes in 3-5 days
2. You will receive a FAFSA Submission Summary (replacing SAR)
3. FAFSA sends data to all selected colleges
4. Colleges create a financial aid offer / award letter – typically March-April
5. Compare offers – colleges often negotiate
6. Accept the chosen college, accept/reject individual aid (Pell, loans, work-study)

Scholarships outside of FAFSA – where to look

Federal (outside of FAFSA)

• ROTC scholarships (military)
• Federal SMART (STEM, military)
• National Health Service Corps (medical)

State (some outside of FAFSA)

• Excelsior NY – middle class
• Cal Grant – CA
• Bright Futures FL – merit-based
• HOPE Scholarship GA – merit

Private / Foundation

• Coca-Cola Scholars (250 of $20k)
• Gates Scholarship (full ride, minorities/low-income)
• Hispanic Heritage
• Niche.com, Fastweb, BigFuture – scholarship databases

Polish scholarships

• Kosciuszko Foundation – $1,500-$30,000, for Polish/Polish-American students, undergraduate and graduate
• Polish American Congress – local chapters
• Polish National Alliance – for PNA members
• Polish Falcons of America – for members
• Pulaski Association – various
• Polish Heritage Society
• Local Polish churches and organizations – often have small scholarships

Practical tips

• Fill out FAFSA in October of senior year – do not wait for college decisions
• Fill out every year of study – aid does not transfer automatically
• Create FSA ID early – when a junior, not a senior (get to know the system)
• Check state deadline – often earlier than federal
• Polish parent with ITIN – can fill out from 2024-25
• Do not leave money on the table – Stafford Loans available to everyone
• Do not confuse federal FAFSA with scam websites – fafsa.gov and studentaid.gov are official
• Fill it out yourself – do not pay "FAFSA preparers" $100-$300; it is free and simple
• Apply for private scholarships – Kosciuszko Foundation is reliable for Polish students