08/26/2026
When parents are planning for college, one of the biggest misconceptions I hear is that "FAFSA is just for Pell Grants." That's only part of the story.
When parents submit the FAFSA, two different reviews take place.
Step 1: The Federal Government
The U.S. Department of Education reviews the FAFSA to determine whether the student qualifies for federal financial aid, such as:
Pell Grants
Federal Work-Study
Federal Student Loans
Many families stop thinking about the FAFSA after this step.
But that's not where the process ends.
Step 2: The Colleges
Every college that receives their FAFSA also reviews their financial information.
Many colleges use the FAFSA to determine whether the student will receive their own institutional need-based financial aid (in addition to any federal aid.) In many cases, the grants that the child received come directly from the college and not from the federal government.
This is why two families with the exact same FAFSA can receive very different financial aid offers from different colleges.
One college may offer little or no institutional aid.
Another may award thousands, or even tens of thousands of dollars each year!!
That's also why choosing the right college list isn't just an admissions decision; it's often one of the biggest financial decisions a family will make.
The FAFSA is much more than a federal form. It's often the first step in determining how much financial assistance a college may be willing to provide.
The more parents understand how the system works, the more opportunities they'll have to reduce the cost of college.
At College Financial Prep, I work with parents as they navigate college planning for their children and saving money on the cost of college.
Want to learn more about FAFSA and CSS Profile? Download the Free Guide "The Parent's Guide To FAFSA & The CSS Profile." https://www.collegefinancialprep.com/the-parent-s-guide-to-fafsa-the-css-profile
Confused about the FAFSA and CSS Profile? This free, easy-to-understand guide, courtesy of College Financial Prep, explains the key differences, common mistakes to avoid, financial aid deadlines, and how colleges actually award aid. Learn the 12 things every parent should know before filing financia...
