The Free Application for Federal Student Aid (FAFSA) is your ticket to grants, scholarships, work-study programs, and federal student loans. But here’s the catch—one small mistake could cost you thousands in financial aid.
Each year, thousands of students lose out on financial aid due to simple errors—mistakes that can lead to delayed processing, reduced aid eligibility, or even complete disqualification from certain funding opportunities. From missing deadlines to incorrect financial information, these errors can significantly impact your ability to afford college.
The good news? Most FAFSA mistakes are easy to avoid. In this guide, we’ll break down the most common errors students make—and how to fix them before hitting submit. With a little attention to detail, you can maximize your financial aid and stress less about tuition. Let’s dive in!
Common FAFSA Mistakes That Can Cost You Aid
1. Missing the FAFSA Deadline
FAFSA deadlines aren’t just suggestions—they determine how much aid you get (or if you get any at all).
The Three FAFSA Deadlines You Can’t Ignore
- Federal Deadline – The FAFSA opens October 1 and closes June 30. But waiting too long could mean missing out on aid.
- State Deadline – Each state has its own deadline, and many offer aid on a first-come, first-served basis. The earlier you apply, the better.
- School Deadline – Colleges often have their own FAFSA deadlines, which can be way earlier than the federal cutoff. Check with your school’s financial aid office.
Why It Matters
Miss them, and you could lose out on grants, scholarships, and work-study opportunities that won’t be available later.
How to Avoid This
Filing your FAFSA early boosts your chances of getting more aid since many programs run on a first-come, first-served basis. The sooner you apply, the better shot you have at grants, work-study, and scholarships before funds run out. Plus, some schools prioritize early applicants for extra financial aid, so submitting ASAP could mean even more money for college.
2. Not Creating an FSA ID (Federal Student Aid ID) Beforehand
Your FSA ID is your key to filing the FAFSA—without it, you can’t start, sign, or submit your application. Many students wait until the last minute, only to realize it takes up to three days to be verified.
Why It Matters
Your FSA ID lets you access, sign, and submit your FAFSA online, as well as track your financial aid status for updates. If you're a dependent student, your parent also needs an FSA ID to complete the process.
How to Avoid This
Since verification can take up to three days, create your FSA ID early—at least a few weeks before applying. Use a personal email, not a school email, and save your login details somewhere safe.
3. Entering Incorrect Personal Information
A simple mistake on your FAFSA can lead to delays, verification issues, or even a rejected application. Some of the most common errors include misspelled names, incorrect Social Security Numbers (SSN), wrong birthdates, and outdated addresses.
Why It Matters
FAFSA uses this information to verify your identity and determine your eligibility for aid. If your details don’t match official records, your application could get flagged for corrections—slowing down the process and potentially affecting how much aid you receive.
How to Avoid This
Double-check your name, Social Security Number (SSN), birthdate, and address against official documents. Make sure your name matches exactly what’s on record—no nicknames or abbreviations.
4. Leaving Fields Blank
Skipping a question on your FAFSA might seem harmless, but it can lead to processing delays or even reduced financial aid. ]
Why It Matters
Leaving fields blank can trigger additional verification steps, delaying how quickly you receive your aid. In some cases, it can even lead to lower aid eligibility if FAFSA assumes missing information means you don’t need financial support.
How to Avoid This
If a question doesn’t apply to you, enter "0" instead of leaving it blank to ensure your application is complete.
5. Misreporting Income and Assets
Filling out the FAFSA means reporting financial details accurately, but mixing up income and assets can hurt your aid eligibility.
Parent vs. Student Income—Know the Difference
If you're a dependent student, your parents' income must be reported, even if they don’t support you financially. However, not all assets count—retirement funds (401(k)s, IRAs) and home equity don’t need to be reported, but savings and investments do.
Common FAFSA Reporting Mistakes
- Including untaxed income that doesn’t count (like retirement savings).
- Forgetting to report taxable scholarships and grants.
- Entering gross income instead of adjusted gross income (AGI).
- Listing the wrong household size, which affects aid eligibility.
Why It Matters
FAFSA calculates aid based on accurate financial details. If you misreport your income, you might get less aid than you qualify for or even face delays if your school requires corrections.
How to Avoid This
Dependent students must report their parents’ income, even if they don’t financially support them. Avoid listing non-reportable assets like 401(k)s, IRAs, and home equity. To prevent mistakes, use the IRS Data Retrieval Tool (DRT) to automatically import tax details through direct data exchange, ensuring accurate and streamlined completion of the FAFSA form.
6. Not Listing the Right Schools
FAFSA lets you list up to 10 schools, but only listing one or two limits your financial aid options
Why It Matters
Some states require an in-state school to be listed first for eligibility. If you don’t include a school, it won’t receive your FAFSA info, meaning you could miss out on financial aid from that institution.
- More schools = more financial aid opportunities. Each school uses your FAFSA to determine what aid you qualify for.
- Some state grants require you to list an in-state school first. Missing this could cost you state-based aid.
- Schools may offer additional need-based aid. Listing more schools keeps your options open.
How to Avoid This
Include all schools you’re considering, and if applying for state aid, list an in-state school first to maximize eligibility.
7. Not Signing the FAFSA Form
Without an electronic signature using your FSA ID, your application won’t be processed, delaying your financial aid.
Why It Matters
Your FSA ID acts as your official signature, confirming that the information you submitted is accurate. Without it, your FAFSA is incomplete, and you won’t receive any aid until it’s signed and processed.
How to Avoid This
Sign electronically with your FSA ID, and if you’re a dependent student, your parent must sign too. Before submitting, check that your FAFSA status says "Processed" to confirm it's complete.
8. Assuming You Won’t Qualify for Aid
Many families skip the FAFSA thinking they earn too much to qualify—but financial aid isn’t just about need-based grants.
Why It Matters
Completing the FAFSA gives you access to federal aid, including federal student loans, work-study programs, and even school-based scholarships that many students don’t realize require a FAFSA submission.
- Federal student loans – FAFSA is required for low-interest loans with better repayment options.
- Work-study programs – Many schools offer on-campus jobs, but you won’t qualify without a FAFSA.
- Scholarships & school aid – Some merit-based scholarships and grants require FAFSA, even if they’re not need-based.
- Life happens – If your family’s finances change, having a FAFSA on file makes getting aid easier.
How to Avoid This
File FAFSA no matter what. Even if you don’t qualify for grants, you might still get low-interest loans or work-study. Check with your school’s financial aid office. Some scholarships and institutional aid require FAFSA, even if they’re not need-based. Keep FAFSA on file. If your financial situation changes, having a submitted FAFSA makes requesting more aid easier.
9. Submitting Incorrect Dependency Status
Your dependency status on FAFSA decides whose financial info you need to include—just yours or yours and your parents'.
Why It Matters
Submitting the wrong dependency status can flag your FAFSA for verification, delaying aid. If reported incorrectly, you may lose eligibility for aid or face extra paperwork to prove your status.
How to Avoid This
Most students under 24 are still considered dependent, even if they live alone or pay their own bills. You’re only independent if you meet specific criteria—like being married, a veteran, or having dependents of your own. If unsure, check FAFSA guidelines or ask your school’s financial aid office.
10. Not Updating FAFSA When Necessary
Filing your FAFSA isn’t a one-and-done deal—you need to update it if your financial situation changes to ensure you get the right amount of aid.
Why It Matters
If your FAFSA isn’t updated, you could miss out on extra aid if your income drops, meaning you might qualify for more assistance from various financial aid programs but won’t receive it. On the other hand, if you’re awarded too much aid, you may have to pay back funds later, which can create unnecessary financial stress. Additionally, failing to update your FAFSA can lead to delays in processing if your school requests updated information, potentially holding up your financial aid disbursement.
How to Avoid This
If your family’s income drops, you might qualify for more aid, but only if you update your FAFSA. Keeping your info current ensures you get the right amount of financial aid.
Final Thoughts
Filing the Free Application for Federal Student Aid (FAFSA) is one of the most important steps in securing federal financial aid for college. Whether you’re applying for grants, federal student loans, or federal work-study, completing the FAFSA correctly ensures you maximize the most financial support available. However, even small mistakes—like incorrect financial information, missing your school year deadline, or entering the wrong legal name—can cause delays, reduced aid, or even ineligibility.
If you’re a dependent student, your legal parents' financial details must be reported accurately, along with the necessary tax information from the Internal Revenue Service (IRS). Be sure to double-check your details, whether you complete the FAFSA form online or use the paper version. Certain eligibility factors, like marital status, family income, and Social Security Administration (SSA) verification, can impact your aid amount for the following academic year.
For official FAFSA resources, visit:
📌 FAFSA Application & Deadlines
📌 State Financial Aid Deadlines
📌 FAFSA Help & FAQs
