How To Apply for College Financial Aid in 2025 | How Financial Aid Works

Applying for financial aid involves completing the FAFSA, meeting eligibility requirements, and accessing additional resources to help cover the costs of college.

Applying for financial aid is an essential step toward making college affordable. If you're unsure where to start, don't worry�many students feel the same way. By following a few simple steps, you can complete your application confidently and increase your chances of receiving the support you need. Below, we'll walk you through the process of receiving financial aid.

Steps for Applying for Financial Aid

In order to apply for financial aid, you must submit the Free Application for Federal Student Aid (FAFSA) form online. Once you complete the form, there are a few more steps you'll need to take�follow these steps to make sure you get as much financial assistance as possible.

1. Gather Necessary Documents

Before beginning the application, take some time to organize your documents. This will save you so much time and stress later. You'll need:

your Social Security number
your parents' Social Security numbers (if you're a dependent)
federal tax returns, W-2s, and income records (for you or your parents, depending on your status)
bank statements and investment records
records of untaxed income, if applicable

Having these documents ready ensures you can accurately fill out the FAFSA (Free Application for Federal Student Aid) without interruptions. If you're missing anything, start locating it now to avoid delays.

2. Create an FSA ID

An FSA (Federal Student Aid) ID is the username and password you'll use to access and sign your application online. Creating your FSA ID is quick and straightforward. First, go to the Federal Student Aid website and press the ''Create Account'' button. Then enter your personal information, including your full name, date of birth, and Social Security number, ensuring accuracy to match your official records.

Next, provide an email address that you visit often and your phone number, which they will use for account recovery and verification. After that, you'll create a unique username and password that you can remember but is also secure. Be sure to write that down so that you won't forget it.

After creating your username and password, select challenge questions and answers to further protect your account. Once all fields are completed, review the terms and conditions, agree to them, and click submit.

A confirmation will be sent to your email or phone to verify your account. Be sure to follow the verification steps to finalize the setup, allowing you to log in and access FAFSA and other federal student aid tools.

3. Complete the FAFSA

Filling out the FAFSA might seem overwhelming at first, but breaking it into steps makes it manageable. Here's what to do:

Log Into Your Account

Go to studentaid.gov and log in using your FSA ID. Each contributor, such as a parent or spouse, must also log in with their own FSA ID to provide their information and consent.

Enter Personal Details

Input your name, birthdate, and contact information exactly as they appear on official documents. Contributors will also need to provide their personal information separately.

List Your Schools

Include every college or university you are considering, up to 20 schools. The FAFSA will share your financial information with these schools to determine your aid eligibility.

Report Financial Information

Use the updated IRS Direct Data Exchange (DDE) tool to securely transfer your federal tax information. Both you and any required contributors must provide consent for this process.

Sign and Submit

Double-check every section for accuracy, ensuring all contributors have signed. Submit your FAFSA online once everything is complete.

4. Review Your FAFSA Submission Summary

After submitting your FAFSA, you'll receive a FAFSA Submission Summary (FSS), which has replaced the traditional Student Aid Report (SAR). This document provides a summary of your application and includes important details about your eligibility for federal student aid. It also shows your Student Aid Index (SAI), the new metric used to measure financial need.

The SAI replaces the Expected Family Contribution (EFC) and can be a negative number, with a minimum value of -1,500. This change aims to better represent the financial needs of students from low-income families.

Review your FSS carefully to ensure all the information is accurate. If you find errors, log back into studentaid.gov, select ''Make Corrections,'' and update the necessary details. Submitting accurate information is crucial to avoid delays in your financial aid process.

5. Explore State Financial Aid Options

In addition to federal aid, many states offer programs to help with tuition costs. To find out what's available, visit your state's higher education website for detailed information. While some states automatically use your FAFSA data to determine eligibility, others require you to complete a separate application. So be sure to check for specific deadlines since they often fall earlier than the federal FAFSA deadline.

6. Apply for Institutional Aid

Many colleges offer their own scholarships, grants, and work-study opportunities. They should each have a financial aid tab on their website where you can find out about their financial aid options, or you can reach out to the financial aid office. Some schools may require you to fill out additional forms or provide extra documentation to apply for their financial assistance programs.

7. Search for Scholarships

Scholarships are an excellent way to reduce your college expenses since they don't need to be paid back. Learning how to apply for scholarships can significantly increase your chances of securing this valuable financial aid.

Start by using reliable platforms like Fastweb, Scholarships.com, or the College Board to search for opportunities tailored to your major, interests, or background. Pay close attention to application deadlines and set reminders to ensure you don't miss them.

Scholarship applications typically require a combination of personal and academic information to assess your eligibility. Be prepared to share the following information:

details about your education, achievements, and extracurricular activities
transcripts to demonstrate your academic performance
letters of recommendation from teachers, mentors, or employers who can speak to your abilities and character
a personal essay, where you'll explain your goals, experiences, and why you're a good fit for the award
proof of financial need, such as income documentation or FAFSA details

Preparing these materials in advance can save you time and ensure your application is complete and polished.

8. Accept Financial Aid Offers

Once colleges process your FAFSA, you'll start receiving financial aid award letters. These letters outline the types and amounts of aid you qualify for, including:

grants: free money based on financial need
scholarships: free money based on academic or other achievements
work-study: part-time jobs to help with college costs
loans: money you'll need to repay with interest

Compare the total cost of attendance (tuition, housing, and fees) against the aid offered to calculate your out-of-pocket expenses for each school. Once you figure out which offers help you pay for college the most, you can accept them as your financial aid package.

9. Maintain Your Eligibility

To keep receiving financial aid throughout college, you'll need to meet certain requirements. One key requirement is maintaining Satisfactory Academic Progress (SAP), which typically involves achieving a minimum GPA and completing a specific percentage of your courses.

Additionally, you must renew your FAFSA annually by submitting a new application each year to continue qualifying for aid. Staying on top of these requirements is essential to ensure you don't lose your financial aid unexpectedly.

FAQS About Applying for Financial Aid

Hopefully, the process for getting financial aid seems simpler to you after going through the steps we listed above. Review the frequently asked questions below if you are still wondering about the process.

Can Financial Aid Cover Expenses Beyond Tuition?

Yes, financial aid can cover more than tuition, including housing, meal plans, textbooks, transportation, technology needs, and even personal expenses, depending on your financial aid package and eligibility.

Can I Still Get Financial Aid If I'm Enrolled Part-Time?

Yes, part-time students can receive financial aid, but the amount may be reduced. Check with your school's financial aid office to understand eligibility requirements and aid adjustments.

Can I Get Financial Aid for Online Degree Programs?

Yes, you can get financial aid for online programs. Many online college degrees are eligible for federal, state, and institutional aid. Ensure the school is accredited and included in your FAFSA school list.

Other ways to make an online degree more affordable include:

Find an Affordable Online Program

To best utilize your financial aid package, enroll in an affordable online program. To learn more about these programs, use our resources on Learn.org and reach out to the colleges with programs you're interested in.