This December, the Free Application for Federal Student Aid (FAFSA) will be opening for all students who will be attending college in the 2024-2025 school year. As a Financial Planner, I often meet with families who believe that applying is a waste of time. However, I strongly encourage ALL families to do so, and here’s why:

9 REASONS ALL FAMILIES SHOULD FILE THE FAFSA

1. Parents are not the best judge of whether they qualify. As college costs go up, the

expected family contribution or EFC, now the Student Aid Index or SAI, may show a gap

between the cost of the more to most expensive schools and the SAI, leaving room for

financial aid.

2. College is a big business, and they want good customers. Colleges will sometimes award funds to the students who need them the least. That means bright students and parents who can afford college for all four years. Admissions are looking for students who may become donors in the future.

3. Borderline students (and this will vary from school to school) with no financial need are often favored with an offer of admission and a scholarship over a similar student with a great deal of financial need. Some colleges would rather offer the affluent student $20,000 per year compared to $40,000 per year for the same student with need.

4. Filing the forms is a great way to show the college your child is interested in attending.

5. Some scholarship programs require the student to include a copy of the FAFSA Student Aid Report.

6. Some colleges will not offer scholarships if the parent doesn’t file the FAFSA.

7. If a change happens to the family's financial situation that would require more assistance, the college can respond quickly if the FAFSA has already been filed.

8. If the parents want their child to have some “skin in the game,” they must file to obtain student and parent loans.

9. Having the student take out a federal direct student loan, even if it’s paid off immediately, is an excellent way for that student to build up a credit score.