FAFSA Mistakes To Avoid

By Joe Messinger, CFP®

January 5, 2024

3 min READ

Remember: The FAFSA for the 2025-26 school year will open on December 1, 2024.

Now, let’s take a closer look at the mistakes you want to avoid while filling out your application.

What is the FAFSA?

A quick summary.

Parents of seniors (as well as returning college students) complete the Free Application for Federal Student Aid (FAFSA) every year. It is an online application used to determine a family’s Student Aid Index (SAI). Note: The SAI replaces the EFC (Expected Family Contribution) as of the 2024-25 FAFSA filing season. The SAI is determined based on a federal formula to measure a family’s financial strength and ability to pay for college. Your SAI is a number between -1500-999999. 

Once colleges receive your SAI, they can better determine your financial aid eligibility.

7 Common FAFSA Mistakes

1) Not filling it out!
Each year “millions of students who would have qualified for college grants still fail to file the FAFSA.” Even if parents think they won’t qualify for need-based aid, it’s still crucial that you and your students fill out the form. A completed FAFSA is required for federal student loans – so even if you don’t qualify for aid, it’s important! It is also used by states, colleges, and some private scholarship providers. In addition, a family’s financial status may change mid-year due to job loss or health issues. Having an original FAFSA on file helps when contacting the financial aid office for a review mid-term.

2) Waiting too long to complete the FAFSA.
The pot of money at most colleges is limited. Once it is gone, it is gone. First come, first served. Waiting until the deadline is acceptable, but truth be told, the earlier you fill it out, the better.

3) Not knowing deadlines.
Speaking of deadlines, it’s important to know them! The FAFSA has federal, state, and college filing deadlines.

Typically, the FAFSA opens on October 1st for the fall of 2023, and you can check federal and state deadlines on the FAFSA website by clicking here. However, for the 2024-25 FAFSA season, the application “soft launched” in December 2023.

4) Not filling it out every year.
The FAFSA completed by high school seniors who are starting college next fall is the most important. However, it is a good idea to file each year of a student’s college career for many of the reasons given in #1 above.

5) Paying someone to file on your behalf.
Beware of scam companies out there who want to take advantage of busy families. The first word in FAFSA is “free.” You do not need to use a website that charges you for the service. Sites can be confusing so remember to always use studentaid.gov.

6) Making mistakes on the form.

There are several mistakes that are common on FAFSA forms. A few key tips are:

• Be sure to type Social Security numbers and other identifying information correctly.
• Don’t leave fields blank (use a 0 if needed).
• Be sure to understand the definitions of the terms like household size, marital status, etc. used on the FAFSA.
• Use the actual legal names of parents and students.
• Understand how divorced parents file, especially with new 2024-25 “contributor” changes.
• Don’t put parent numbers in student fields.

If you have questions about your FAFSA, working with a financial planning team that specializes in college-bound families and their unique needs can help.

7) Forgetting to include all of the colleges the student is applying to.
Unless a student is only applying to one school, include all the colleges on your list. The list does not impact any financial aid determinations. You can list up to 20 schools on the 2024-25 FAFSA.

Just do it!

The FAFSA is a detailed, but not overly laborious process. The whole process from gathering the documents to filling the FAFSA out online should take less than an hour. Save time with these helpful tips:

• Know what forms and information you need to complete the FAFSA before you start. Studentaid.gov lists everything you need to get started here.
• Know what your expected out-of-pocket costs may be before receiving financial aid offers by using Capstone Wealth Partner’s free College Money Report™.

Have questions? Reach out! Our team is here to help.

Originally published 10/2018
Updated 1/2024