The Five Common Myths: FAFSA
SaveIn this article, we dispel some of the most common myths about FAFSA.
By SAGE Scholars — October 2, 2025
For many families, the Free Application for Federal Student Aid (FAFSA) is the key to making college more affordable. Yet every year, students miss out on grants, scholarships, and loans because of persistent myths about who qualifies and how the process works.
Below, we break down some of the most common FAFSA myths - and what's actually true.
Myth #1: "My family makes too much to qualify."
Many families assume that FAFSA is only for low-income households, but there's no strict income cut-off to apply.
The FAFSA uses a range of factors - including family size, income, and assets - to calculate your Student Aid Index (SAI), which colleges use to determine your financial aid package. Even families with higher incomes may qualify for:
- Federal student loans
- Institutional scholarships
- State or school-based grants
- Work-study programs
The only way to know for sure is to complete the FAFSA. Many types of aid, including some merit-based awards, require that you have a FAFSA on file.
Myth #2: "I have to finish my taxes before I can file."
This is outdated. FAFSA now relies on tax information from a previous tax year, transferred securely through the IRS Direct Data Exchange.
This means:
- You don't need to wait to file taxes before submitting your FAFSA.
- You no longer need to "estimate" income and correct it later.
- The process is generally faster and more accurate than in the past.
Filing early is still encouraged, since many aid programs operate on a first-come, first-served basis.
Myth #3: "FAFSA aid depends on my grades."
FAFSA itself doesn't look at GPA, test scores, or class rank to determine eligibility for aid.
However, once you receive aid, most colleges require that you meet Satisfactory Academic Progress (SAP) to keep it. Each college sets its own standards, but typically you must:
- Maintain a minimum GPA
- Complete a certain percentage of attempted courses
- Make steady progress toward your degree
If your grades slip below your college's SAP standards, you may lose eligibility until you meet those requirements again.
Myth #4: "I only have to file once."
FAFSA isn't a one-time application. You need to renew and submit it every year you want to receive financial aid.
The good news is:
- Renewal forms are usually much faster to complete, since your information carries over.
- Even if your financial situation hasn't changed, annual filing ensures you stay eligible for aid.
- Filing early each year can maximize your opportunities for grants and scholarships.
Think of FAFSA as part of your yearly college planning routine.
Myth #5: "I support myself, so I don't need my parents' information."
Dependency status for FAFSA is different from how the IRS defines it for taxes. Even if you support yourself financially or file your own taxes, you may still be considered a dependent student for federal aid purposes.
The FAFSA includes a set of questions to determine your dependency status. Unless you meet specific independent criteria (such as being over a certain age, married, a veteran, or a ward of the court), you'll need to include your parents' information.
You can use the official dependency status tool to check your status before filing.
The Bottom Line
Filing the FAFSA is free, easier than ever, and often opens the door to thousands of dollars in financial aid. Don't let myths or assumptions keep your family from applying. Even if you think you won't qualify, submitting the FAFSA ensures you're eligible for the widest range of grants, scholarships, loans, and work-study programs.
SAGE Scholars
At SAGE Scholars, we deeply believe in the value and quality of private higher education. Our mission is to provide access to affordable college opportunities while bringing together families, colleges & universities, and benefit providers to create college funding solutions. Since 1995, SAGE Scholars has bridged the gap between students who want a quality private college education and colleges that will work closely with member families to ensure affordability - all at no cost to the families.Articles & Advice
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