ALT How Financial Aid Works Start Planning Early Plan how to pay for college, career school, or trade school before you start your financial aid journey. Ask school counselor and the financial aid office about state, school, and nonprofit grants and scholarships you can apply for. Be sure to meet application deadlines. States have limited funds, so understand your state’s requirements and apply early to be eligible for as much aid as possible.

ALT Fill Out the FAFSA® Form Before each year of college, career school, or trade school, apply for federal student grants, work-study funds, and student loans with the FAFSA form. Your school uses your FAFSA info to determine your federal student aid eligibility. Many states and schools use FAFSA data to award their own aid. After you submit your FAFSA form, you’ll receive your FAFSA Submission Summary, which has the information you included in your form. Review it and make corrections if needed.

ALT Aid Offer If you’re accepted to a school you listed on your FAFSA form, the school will send you an aid offer. Your aid offer will explain any federal student grants, loans, and work-study funds a school offers you. The offer might also contain state and institutional aid. If you receive aid offers from multiple colleges, career schools, or trade schools, you should compare them and decide which school is best for you. Grants are funds that don’t have to be repaid. A loan is money you borrow and must pay back with interest. A work-study job gives you an opportunity to earn money to pay your educational expenses.

ALT Receiving Aid Every year, each school sets its own schedule for disbursing (paying out) aid, partially determined by when you submitted all required paperwork. Your college or career school has a financial aid office to help guide you along the way. Graduate and Start Repayment As you prepare to graduate, get ready to repay your student loans. Choose a repayment plan that’s best for your goals. Income-driven repayment plans base your monthly payment amount on your income and family size. If you start falling behind on your payments, contact your loan servicer to discuss repayment options.

ALT 6 Steps for Students Filling Out the FAFSA Form

ALT Live webinar! Understanding FAFSA Submission Summary and Financial Aid Offer Letters: April 24, 2025, from 3 to 4 p.m. Eastern time. This webinar will break down the FAFSA Submission Summary and financial aid offers. We will walk through the different sections, explain what is included, and provide guidance for students on what they should do with each of their FAFSA Submission Summary and financial aid offers.

ALT Illustrated graphic that details an example of ranking and comparing financial aid offers. Metrics used include: total costs (expected and unexpected) of each school; the federal student aid each school offered, including federal grants, Direct Subsidized Loans, Direct Unsubsidized Loans, and Federal Work-Study; the amount of state aid, institutional aid, and additional aid or income sources (such as community based scholarships and part-time job income) available at each school; the total estimated out-of-pocket costs of each school; the estimated private loans needed for each school; and any additional school factors such as student to facility ratio, diversity, and school location.

ALT Illustrated graphic that details an example of ranking and comparing financial aid offers. Metrics used include: total costs (expected and unexpected) of each school; the federal student aid each school offered, including federal grants, Direct Subsidized Loans, Direct Unsubsidized Loans, and Federal Work-Study; the amount of state aid, institutional aid, and additional aid or income sources (such as community based scholarships and part-time job income) available at each school; the total estimated out-of-pocket costs of each school; the estimated private loans needed for each school; and any additional school factors such as student to facility ratio, diversity, and school location.

ALT 2025–26 FAFSA Form FAQs Submission Summary from, Federal Student Aid’s College Counselor​

ALT Q: What is the FAFSA Submission Summary?​ A: This document summarizes a student’s FAFSA form answers and estimates eligibility for federal student aid. It includes the Student Aid Index, used by colleges to calculate aid eligibility. Students typically receive it within one to three days of submitting the FAFSA form. It is not a financial aid offer, which is provided by colleges after admission acceptance.​

ALT Q: How do I view my FAFSA Submission Summary?​ A: If your FAFSA form was processed successfully, you can view your FAFSA Submission Summary by​ logging in to StudentAid.gov using your account username and password;​ selecting your processed FAFSA submission from the “My Activity” page, which will bring you to the Status Center “Details” page; and​ selecting “View FAFSA Submission Summary.”​

ALT Q: Why was my Student Aid Index not calculated?​ A: There could be several reasons for this:​ Your form is missing a signature or signatures from you or your contributor, you haven’t provided consent and approval for the IRS to transfer tax information to your form, or the amount of taxes reported is very high compared to adjusted gross income. Typically, you can fix this by logging in to StudentAid.gov and making the necessary correction to your form.​ You’re neither a citizen nor an eligible noncitizen, so you’re not eligible for federal student aid. You can contact your school to explore nonfederal student aid options.​ Your parent(s) are unwilling to provide their information on your FAFSA form, so you may only be eligible for a Direct Unsubsidized Loan. You can contact your school to find out what you need to do next.​

ALT Types of Aid​ Grants, Work-Study, and Loans

ALT Grants: financial aid that generally doesn’t have to be repaid Federal Supplemental Educational Opportunity Grants: for undergraduates with exceptional financial need at participating schools​ Pell Grant: for undergraduates with financial need​ The maximum Federal Pell Grant award is $7,395 for the 2025–26 award year (July 1, 2025, to June 30, 2026). Teacher Education Assistance for College and Higher Education Grants: for undergraduates and graduate students who are going to school to become a teacher​

ALT Work-Study: federal work program through which students at participating schools earn money to help pay for school​

ALT Loans: borrowed money for college or career school that must be paid back with interest​ Direct PLUS Loan: for graduate and professional students and for parents of dependent undergraduates​ Direct Unsubsidized Loan: for undergraduates and graduate students​ Direct Subsidized Loan: for undergraduates​ Interest is paid by the U.S. Department of Education while the student is in school and during periods of deferment​.

ALT The FAFSA Submission Summary has four sections:​ Eligibility Overview​ FAFSA Form Answers​ School Information​ Next Steps​

ALT Eligibility Overview​ This section gives information about the aid you may receive from your school, including grants, work-study, and federal student loans. It shows your confirmed Student Aid Index (SAI), which is used to determine your financial aid eligibility. If selected for verification, your school will request documentation from you. The aid amounts shown are estimated, not guaranteed. Your school makes the final decision about the aid it offers.​ FAFSA Form Answers​ This section shows the answers you and your parent or guardian provided on your FAFSA form. You can check if the schools you chose to send your FAFSA information to are correct and if you signed the form electronically. If you find a mistake, you can fix it by clicking the "Make a Correction" button at the top of the page.​

ALT School Information​ This section shows details about the schools you chose to send your FAFSA information to, like graduation rates, student loan debt, and cost of attendance. It helps you compare schools to decide which one to attend based on costs and potential student loan debt.​ Next Steps​ In the last section of the summary, Federal Student Aid shares suggestions regarding next steps you should take, like making corrections or sending additional documents to your school. It's important to do these soon to maintain your eligibility for federal student aid.​

ALT Information Required for the 2025–26 FAFSA Form:​ Your Social Security number​ Federal income tax returns; records of child support received; and your current balance of cash, savings, and checking accounts ​ Records of net worth of investments, businesses, and farms​ StudentAid.gov account (students and contributors each need their own)​ Records of untaxed income (if applicable)​ Bank statements and records of investments (if applicable)

ALT Budgeting Tips for School​ Key Budgeting Principles:​ Overestimate expenses and underestimate income to create a financial buffer.​ Involve family in financial planning and discuss income sources.​ Build an emergency fund to prepare for unexpected situations.​

ALT Needs vs. Wants Strategy:​ Create a list of items you want to save for, and then categorize each as a need or want.​ Ask yourself if you’ll still value the purchase in a month.​ Prioritize items (1 = must have, 2 = really want, 3 = would be nice).​

ALT Additional Best Practices:​ Track all your spending regularly to help you understand where your money goes and make better choices.​ “Pay yourself” by putting money into savings first, before spending on anything else.​ Only use credit cards for things you can fully pay off each month.​

ALT Key Budgeting Scenarios:​ Moving off-campus: Save for rent deposits and furniture.​ Starting an internship: Budget for work clothes and transportation.​ Job searching after graduation: Plan for interview expenses and potential income gaps.​

ALT What you'll need to complete the 2025–26 FAFSA form include a StudentAid.gov account (students and contributors must each have their own account); your Social Security number (unless you're a citizen of the Freely Associated States); your 2023 tax records; records of your assets, including any child support received, current balances of cash, savings, and checking accounts, and net worth of investments, businesses and farms; your contributor's information, including their name, date of birth, Social Security number (if they have one), and email address; and the list of schools you're applying to (if you're a high school senior) or your current school's name.