How Much Money Can You Get From the FAFSA?

The Free Application for Federal Student Aid (FAFSA) gives you access to a variety of financial aid options for students pursuing higher education in the United States.

While the amount of financial aid you can receive varies depending on your personal financial situation, your school's cost of attendance, and the types of aid available, it is important to understand how FAFSA works and what you might be eligible for.

What Is the Maximum Amount of Money FAFSA Gives?

The maximum amount of money you can receive through FAFSA depends on the type of financial aid you are eligible for, such as federal grants, loans, and work-study programs. Here's a breakdown of the maximum limits for each major type of federal aid.

1. Federal Pell Grant

The Pell Grant is a need-based grant awarded to undergraduate students who demonstrate exceptional financial need. The grant does not need to be repaid, making it one of the most sought-after forms of financial aid.

The maximum award for 2024-2025 school year is $7,395 per year. Keep in mind that not all students will receive the maximum amount. The specific grant award is determined by your Expected Family Contribution (EFC), the cost of attendance at your school, and whether you are enrolled full-time or part-time.

2. Federal Supplemental Educational Opportunity Grant

The Federal Supplemental Educational Opportunity Grant (FSEOG) is a need-based grant for students with significant financial need. It is administered by participating schools and offers additional funding for students who qualify for Pell Grants.

This grant ranges from $100 to $4,000 per year. Funding for FSEOG is limited, and not all schools participate in this program. Therefore, it is awarded on a first-come, first-served basis to students with the greatest need.

3. Federal Work-Study Program

The Federal Work-Study Program provides part-time employment opportunities for students with financial need. Students can earn money to help cover their educational expenses by working on or off campus.

There is no fixed limit for work-study earnings since it depends on your school's funding and your availability to work. However, your total work-study award will be part of your financial aid package. So, make sure you balance work hours with your academic commitments.

4. Federal Direct Subsidized Loan

Subsidized loans are available to undergraduate students with financial need. One of the main benefits is that the federal government pays the interest on these loans while you are in school at least half-time.

The highest amount you can get a loan for is:

• first-year students: $3,500
• second-year students: $4,500
• third-year and beyond: $5,500

These amounts represent the maximum you can borrow each year. However, the total amount you can borrow over your academic career is capped at $23,000.

5. Federal Direct Unsubsidized Loan

Unsubsidized loans are available to both undergraduate and graduate students regardless of financial need. Unlike subsidized loans, interest begins accruing as soon as your school receives the loan money.

This loan's limits are:

• dependent students: up to $34500 to $7,500 annually
• independent students: up to $9,500 to $12,500 annually
• graduate students: up to $20,500 annually

The lifetime borrowing limit for undergraduates is $31,000 for dependent students and $57,500 for independent students.

6. PLUS Loans

Parent PLUS Loans are available to parents of dependent undergraduate students to help cover any remaining educational costs after other forms of financial aid have been applied. Graduate students can also apply for Graduate PLUS Loans.

The maximum loan amount is equal to the cost of attendance minus any other financial aid received.

How Do I Know How Much Money FAFSA Will Give Me?

Once you complete and submit the FAFSA, your financial information is processed, and you'll receive a Student Aid Report (SAR), which outlines your eligibility for federal grants, loans, and work-study programs.

The amount of aid you receive depends on factors like your financial need, the cost of attendance at your chosen school, your enrollment status (full-time or part-time), and whether you are attending for a full academic year.

Each school you apply to will use this information to create a financial aid package tailored to your circumstances.

How Much Are FAFSA Payments?

FAFSA itself does not provide direct payments. Instead, it helps determine your eligibility for various types of financial aid, including grants (which do not require repayment), loans (which do), and work-study.

If you sign up for federal loans, your monthly payments will depend on several factors, including the type of loan, the total amount borrowed, and the repayment plan you choose.

• Standard Repayment Plan: fixed monthly payments over 10 years, with a minimum payment of $50 per month
• Income-Driven Repayment Plans: family size and income-based payments, which can make loan repayment more manageable if you have a lower income

How Much Do You Pay Back for FAFSA?

Grants and work-study funds do not need to be repaid. However, any federal loans you borrow through FAFSA will need to be repaid with interest. The amount you repay depends on how much you borrow and the terms of your loan repayment plan.

For example, if you borrow $27,000 in federal loans over four years, you will need to repay this amount plus any interest that accrues. Interest rates vary by loan type, and you may qualify for deferment or forbearance if you experience financial difficulties.

Repayment of federal student loans typically begins six months after you graduate, leave school, or drop below half-time enrollment.