There’s no income limit for the FAFSA (Free Application for Federal Student Aid), and completing it annually could unlock federal aid and grants, as well as scholarships.
That’s an important detail since most people qualify for some financial aid. Parents should complete the FAFSA each year their child is in college to be sure they’re not missing out on money they can put toward college expenses.
It’s common for people to think they make too much money to qualify for financial aid, but that may not be the case. Financial aid formulas are complex, which means that your paychecks and tax returns may not be a reliable way to estimate your eligibility. Let’s look at the FAFSA income requirements for the 2025-26 academic year.
What is the FAFSA?
The federal government uses the FAFSA to provide more than $256 billion in grants, student loans, tax credits, and work-study funds each year to undergraduate and graduate students. Completing and submitting the FAFSA is the first—and most important—step in accessing those funds.
How is the FAFSA used?
The FAFSA determines your eligibility for federal and state aid, and many colleges also use it to award institutional aid and merit scholarships. Some private scholarship decisions may be based on this information as well.
What is the income limit for federal student aid?
When it comes to FAFSA requirements, there’s no income limit. The amount of financial aid you’re eligible for is determined by multiple factors, like your family’s assets and earnings, your family size, and where you are in your academic journey. High-income families aren’t automatically disqualified.
Should our family file the FAFSA if we apply to low-cost schools?
It’s always a good idea to file the FAFSA, no matter where you’re applying. The cost of tuition, books, meals, fees, travel, data plans, housing, and medical expenses can add up quickly—even at a college with lower tuition.
Remember that filing the FAFSA isn’t an obligation to take any funds, and students could end up qualifying for free money they wouldn’t have had access to otherwise.
Our child doesn’t need financial aid. Should we still file the FAFSA?
The FAFSA isn’t just for federal student aid. Many schools require you to fill out the FAFSA to be considered for merit-based scholarships and other institutional aid. In general, “when in doubt, fill it out” is a good rule of thumb.
It’s free to submit the FAFSA, and it takes most people less than an hour to complete it. It’s the first step to accessing financial aid, and there’s no requirement to take the funds if you don’t need them.
When completing the FAFSA 2025-26 edition, remember that there are no FAFSA income eligibility requirements—and completing this form could lead to much-needed financial aid.
FAFSA® is a registered trademark of the US Department of Education and is not affiliated with Discover® Student Loans
We encourage you to consult a financial planner before making financial decisions. For tax advice, visit IRS.gov or ask a tax professional if you have questions.
