FAFSA Eligibility: Who Qualifies and Income Limits

Congratulations! You received your acceptance letter and have picked a school, but now you must figure out how to pay for college. As you and your family consider college expenses, you may feel overwhelmed by the cost and all the financial aid options. 

You’ve probably heard of the FAFSA (Free Application for Federal Student Aid), but understanding how and when to apply, and if you’re eligible for aid can be confusing. For parents, you may be wondering if it’s even worth your time, especially if your income is higher. 

Regardless of income, students and their parents should fill out the FAFSA, so you don’t miss out on valuable financial aid opportunities. Check out these helpful tips about FAFSA qualifications to ensure you get the aid you need.

Basic FAFSA Qualifications

Basic FAFSA eligibility is based on a few key factors:

• Financial need.
• U.S. citizenship or eligible non-citizenship designation.
• Enrollment in an eligible educational institution.
• Proven academic progress while in school.

Let’s dive into these details so you better understand FAFSA eligibility.

Students with Financial Needs

Students and parents who need support covering college costs like tuition, room and board, and books, can apply for the FAFSA. The FAFSA income guidelines will help determine how much financial aid you are eligible for, and the following sections will explain more about income guidelines.

Students with a High School Diploma or GED Certificate

Another requirement for FAFSA qualification is that you must have a high school diploma, GED, or completed a state-approved home-school education program.  

Students Who Are U.S. Citizens and Eligible Non-citizens

If you are a U.S. citizen, you must provide your social security number and other identifying information when applying for the FAFSA. If you are a dependent student, your parents must provide similar information and permit their federal tax records to be directly sent from the Internal Revenue Service (IRS).

FAFSA eligibility for non-citizens is possible if you fall into a certain category and have the necessary documentation. You may still be eligible if you’re in the process of becoming a U.S. citizen. 

Students Enrolled or Accepted in Eligible Degree or Certificate Programs

To meet FAFSA eligibility requirements, you need to be enrolled in an eligible degree or certificate program. Degree programs need to be offered at accredited universities and colleges. If your college is not accredited, there’s a high chance you won’t be eligible for FAFSA. 

Check your school’s website for details about your major or program’s accreditation. If not, you can always reach out to your academic advisor. 

FAFSA Income Guidelines

Income can play a role in how much federal aid you qualify for in addition to several other factors. There are no FAFSA income limits to apply, so it’s important to fill out the FAFSA form regardless of how much your family makes. 

Student Aid Index (SAI)

Student Aid Index (SAI) is the number used to determine how much financial aid you qualify for based on the information you and other contributors fill out on the FAFSA. A negative SAI means you may qualify for more financial aid like a Pell Grant.

Your SAI is not your entire financial aid offer, what you’ll owe, or the specific dollar amount you could receive. Filling out the FAFSA early will give you more insight into how much federal aid you could receive and help you begin planning for college sooner.

Are There Income Limits on FAFSA Eligibility?

No, there are no income limits for FAFSA eligibility. No matter how much you or contributors make, you can still complete the FAFSA form. However, the amount of aid you’re eligible for is partially dependent on financial need. If you have less financial need, you may not qualify for certain types of aid.

To qualify for any federal financial aid, including grants, work-study, and college loans, you’ll need to complete the FAFSA form.

Special Cases Affecting FAFSA Eligibility

Some special cases may affect your FAFSA qualification. These can include:

• A recent change in your income, employment status, or housing situation.
• Tuition, medical, or childcare expenses.
• If you or a member of your household have a severe disability.

Check the Federal Student Aid website if your income has changed recently or if your family is experiencing financial hardship. 

Students with a Criminal Conviction

FAFSA eligibility may be affected by a criminal conviction; However, drug convictions no longer impact your federal aid eligibility. If you are incarcerated, you have limited FAFSA eligibility, but those limitations may be lifted upon your release. If you are on parole or probation, or in sober living, you may still be eligible for financial aid. 

To get more information on what your conviction could mean for you, check out this federal aid page.  

Students with a Disability

If you receive Social Security Disability Insurance (SSDI), it may impact how much financial aid you’re eligible for.

Non-citizen Students 

Non-citizens could be eligible for FAFSA if you:  

• Are a U.S. national.
• Have a green card.
• Have Arrival/Departure Record (I-94). 
• Have battered immigrant-qualified alien status. 

Have a T visa or a parent with a T-1 visa.

Students with a Parent Who Was Killed in Military Action 

If your parent or guardian died in the line of duty while serving in the U.S. Armed Forces after September 11, 2001, you can receive the Pell Grant under the Special Rule in the Higher Education Act (HEA). 

What Disqualifies You from FAFSA?

There are some circumstances in which you may lose your FAFSA eligibility. Keep reading to learn more about how to avoid losing eligibility. 

Poor Grades

If your grades drop and you’re not maintaining good academic standing, you could lose FAFSA eligibility. Check your school’s academic policies to ensure that you meet the requirements to keep your FAFSA qualification. 

You’re No Longer Enrolled in a Qualified Program

If you change schools or programs, you may lose your FAFSA eligibility. Check the school or program you’re enrolled in to ensure it’s qualified under FAFSA guidelines. 

Your Parents Didn’t File Taxes

Your parents must file taxes and submit that information on the FAFSA application to be eligible for need-based federal aid like grants or work-study. The U.S. Department of Education needs this information to calculate your SAI number.

You Defaulted on Student Loans

If you default on previous student loans or haven’t finished paying past student loans, you could lose your FAFSA eligibility. This is most applicable if you’re a returning student applying for a new loan for a graduate program.

Your Citizenship Status Expired

If you were an eligible non-U.S. citizen but your status changed, you could lose FAFSA eligibility. If you can reinstate your legal status, you may be eligible for FAFSA again.

You Forget to Renew

To remain FAFSA eligible, you must fill out the application for each year you need financial aid or are enrolled in school and meet the FAFSA approval timeline. If you apply early, you’ll have more time to plan for and apply for other financial aid like private loans or scholarships. 

FAQ

What Are the Three Eligibility Requirements for FAFSA?

To be eligible for financial aid under FAFSA you must show financial need, have U.S. citizenship or be an eligible non-citizen, and be enrolled in a qualified school program.

What Is the Maximum Income to Qualify for FAFSA?

There is no income limit for the FAFSA so you should apply regardless of your family’s income level. Federal aid is based on need, so if you do have a higher income, you may not qualify for certain grants or student loans.

How Far Back Does FAFSA Look at Income?

You and/or your contributors must provide income for the past two years, which is found on the tax information directly submitted by the IRS.