Advertiser Disclosure

Last update: March 5, 2024

5 minutes read

How much money can you get Through FAFSA?

Explore FAFSA's full potential as we guide you through the maximum money you can secure for your college education.

By Brian Flaherty, B.A. Economics

Edited by Rachel Lauren, B.A. in Business and Political Economy


Have you ever considered applying for the FAFSA to cover your college expenses, but found yourself wondering, "what is the most FAFSA money I can get?" Simply put, independent undergraduate students can get up to $57,500 in aggregate FAFSA loans, with up to $23,000 being in subsidized loans.

This is just loans - you can even qualify for grants that don’t need to be paid back. In this post, you'll learn how much money you can get by completing your FAFSA.

Key takeaways

  • FAFSA is a federal form to apply for student financial aid, including grants and loans
  • The total amount independent undergraduates can get through is $57,500 in loans, with grants amounting to a little more than $10k annually (if you qualify)
  • The financial aid amount is influenced by factors like Cost of Attendance (COA) and Expected Family Contribution (EFC)

    What is the most FAFSA money you can get?

    The maximum amount of aggregate loans that independent undergraduates can get through FAFSA is $57,500. Interestingly, only up to $23,000 of this total can come in the form of subsidized loans, with the remaining amount being unsubsidized loans.

    For grants, you can potentially receive up to $11,395 annually - but it’s rare to qualify for the full amount, and there are some strings attached.

    Note that maximum loan amounts are a bit lower for undergraduates still considered to be dependents of their parents. These students can take out up to $31,000 in total loans - but the $23,000 subsidized limit remains the same.

    What is FAFSA?

    Let's start with the basics - the FAFSA, or the Free Application for Federal Student Aid, is a tool that can help you get money for college. It's a form that both current and potential college students can fill out on the official FAFSA website.

    Remember, FAFSA isn’t the organization that hands out loans - that role is reserved for the Department of Education. So when you get a “FAFSA” loan, it’s really just a federal loan. Of course, to qualify for those loans, you’ll need to fill out the FAFSA form.

    This isn't just a formality. It can determine the amount of financial aid the government can give you with grants and/or loans. The best part? Applying for the FAFSA is 100% free. Now, let's explore the types of loans you can get:

    • Subsidized loans: Interest payments are paid by the Department of Education while you're in school.
    • Unsubsidized loans: Interest starts accruing once the loan is given to you, even while you're attending school. However, payments aren’t required until after graduation.

    Which factors influence FAFSA aid amounts?

    Now that we've introduced FAFSA, let's tackle the question of "how much FAFSA money can I get?". The answer isn't straightforward, since there are many factors that influence your FAFSA aid:

    1. Cost of Attendance (COA): This includes tuition, room and board, cost of books, supplies, and transportation associated with your college.
    2. Expected Family Contribution (EFC): It's a measure of your family's financial situation, including income, assets, benefits, etc.

    TuitionHero Tip

    Understanding your COA and EFC is crucial for assessing potential aid and clarifying your college financial situation through FAFSA.

    How can I maximize my FAFSA aid?

    There's a maximum cap to how much money the government can give you, but it's tied to certain factors. For example, the Federal Pell Grant, targeted at students with high financial needs and no prior degrees, can grant you up to $7,395 annually. And the best part? You don't have to pay this amount back.

    For those who don’t qualify for the Pell Grant, there’s also the Iraq and Afghanistan Service Grant in the same amount, but it’s only for students who lost a parent serving in the US armed forces. If you plan to become a teacher after graduating, you also might qualify for an extra $4,000 a year in federal TEACH Grants. So, the total amount of federal grants you might qualify for is $11,395 per year - but it’s rare to get that full amount.

    In addition to grants, you can receive a total of $57,500 in loans throughout your college education if you’re an independent undergraduate, through a mix of subsidized and unsubsidized loans (that’s $14,375 split up annually). Remember our limit of $23,000? That's the maximum you can receive in subsidized loans. The remainder will be unsubsidized.

    Are private loans a better option?

    In simple terms, federal loans are a better option than applying for private loans for your education. Private loans involve a complicated application process, finding a cosigner, and dealing with other challenging details, such as higher interest rates.

    Applying for federal loans through the FAFSA is more straightforward and user-friendly. It might cause a bit of stress at first, but in the end, it could be the financial help you need for your college experience. The only caveat is that it may not cover 100% of your tuition needs.

    Do’s and don'ts of applying for FAFSA

    When applying for the FAFSA, there are certain things you should do and mistakes you definitely want to avoid. These can really affect the amount of aid you receive and, in the end, your financial situation as a college student.

    Do

    • Do complete the FAFSA every year

    • Do apply as early as possible

    • Do check your eligibility criteria

    • Do provide accurate financial information

    Don't

    • Don't assume the FAFSA is a one-time thing

    • Don't procrastinate, as you might miss deadlines

    • Don't blindly apply

    • Don't exaggerate or underestimate your finances

    Advantages and disadvantages of FAFSA aid

    Understanding college finances can be hard. It's important to consider the advantages and disadvantages, especially when making the big decision to apply for federal aid through the FAFSA.

    • You can potentially get free money via grants.
    • Subsidized loans offer the advantage of the government paying interest while you're in school.
    • You're not burdened with a heavy penalty if you decide to prepay your loan.
    • It provides a smoother, simpler process compared to private loans.
    • It may take some time to gather your required information. But honestly, that's it, you really don't have much, other than some time, to lose.

    Why trust TuitionHero

    At TuitionHero, we help teach you all about college finances. We offer services like Private Student Loans, Student Loan Refinancing, Scholarships, and even Credit Card Offers.

    The process of applying for the FAFSA, understanding eligibility criteria, and estimating the potential aid can be confusing. But don't worry! We're here to guide you through the confusion and break down this process into easy steps. Our mission? To turn your education dreams into reality without drowning you in debt.

    Frequently asked questions (FAQ)

    The earlier, the better! The 2024-2025 FAFSA applications opened in December 2023. We recommend you apply as soon as possible to make sure you don’t miss any deadlines.

    AnsYes, it can. Your FAFSA award amount can change each year based on many factors including your family's financial situation, the number of family members in college, and the policy of your school or state.

    Absolutely! FAFSA isn't only for undergraduates; it also covers graduate studies. However, this financial aid works a bit differently. You can often qualify for higher loan amounts, but usually, they are unsubsidized.

    Unfortunately, no. Federal aid is mainly intended for U.S. citizens, certain eligible non-citizens, and U.S. nationals. If you're an international student, you might want to explore other options, like scholarships or private international student loans available on our TuitionHero platform.

    Final thoughts

    Completing the FAFSA form is an important part of getting financial aid for college and can make paying for your college expenses a lot easier. Make sure to check out our resources at TuitionHero to maximize your FAFSA application and take advantage of the many services we provide.

    Source


    Author

    Brian Flaherty avatar

    Brian is a graduate of the University of Virginia where he earned a B.A. in Economics. After graduation, Brian spent four years working working at a wealth management firm advising high-net-worth investors and institutions. During his time there, he passed the rigorous Series 65 exam and rose to a high-level strategy position.

    Editor

    Rachel Lauren avatar

    Rachel Lauren is the co-founder and COO of Debbie, a tech startup that offers an app to help people pay off their credit card debt for good through rewards and behavioral psychology. She was previously a venture capital investor at BDMI, as well as an equity research analyst at Credit Suisse.

    At TuitionHero, we're not just passionate about our work - we take immense pride in it. Our dedicated team of writers diligently follows strict editorial standards, ensuring that every piece of content we publish is accurate, current, and highly valuable. We don't just strive for quality; we aim for excellence.


    Related posts

    While you're at it, here are some other college finance-related blog posts you might be interested in.

    5 minutes read

    Ever wondered what a guarantor does? Learn how guarantors help borrowers secure loans.

    Learn More

    3 minutes read

    Learn about FAFSA and its role in accessing financial aid, and how it can help you secure grants, loans, and work-study opportunities for college.

    Learn More

    6 minutes read

    Explore how FAFSA can cover graduate school, understand loan options and interest rates, plus dive into key do's and don'ts. Learn about financial aid for your Master's Degree now.

    Learn More


    Shop and compare student financing options - 100% free!

    Always free, always fast

    TuitionHero is 100% free to use. Here, you can instantly view and compare multiple top lenders side-by-side.

    Won’t affect credit score

    Don’t worry – checking your rates with TuitionHero never impacts your credit score!

    Safe and secure

    We take your information's security seriously. We apply industry best practices to ensure your data is safe.

    Finished scrolling? Start saving & find your private student loan rate today

    It’s 100% free
    Won’t affect credit score
    Compare rates from multiple lenders