Depending on your finances, you could receive a federal Pell Grant of up to $6,435 for each year of college.
Depending on your finances, you could receive state grants to help fund college. These are first come, first serve in North Carolina, though!
Colleges and universities use the FAFSA to decide how much financial aid they’ll give you; even if you don’t qualify for state or federal aid, it’s highly possible you’d qualify for financial aid from the school you’re trying to attend!
Some schools require the FAFSA even for merit-based scholarships
Even if you don’t qualify for grants or financial aid, you’re required to complete the FAFSA in order to take out Direct Unsubsidized loans, Grad PLUS loans, and Parent PLUS loans. The current interest rate for Direct Unsubsidized loans is 5.05%, and you have a six-month grace period after you stop enrollment in college before you have to start paying back the loan (i.e. if you start and stay in school for four years, and then graduate around May of 2026, you won’t have to start paying back the loan until around November of 2025). If you take out a private student loan from a bank, interest rates are higher, typically around 6-10%.
It’s not guaranteed you’ll get money if you fill out the FAFSA, but it’s guaranteed you won’t get financial aid if you don’t. Take an hour and possibly save thousands of dollars!
Create your Federal Student Aid (FSA) ID here
The FSA ID is your login for the FAFSA. To create your ID, you will need to know your Social Security Number (do NOT guess). You will be asked to answer challenge questions in case you get locked out of your account. And when you finish, you will be asked to enter confirmation codes through email and text. Write your username and password down or put it in the notes on your phone!
Make sure a parent also creates an FSA ID
Parents need to have an FSA ID for two primary reasons: they will be asked to transfer their tax information onto the FAFSA (don't worry - it's not too hard) and they will be asked to sign their child's FAFSA at the end. Both of these steps require an FSA ID. FAFSA becomes much more difficult if parents skip this step. If your parents are divorced, the parent who you live with the most will be the parent on the FAFSA. They will be the parent who creates the FSA ID. If they are remarried, their spouse will be listed as Parent 2 on the form.
Start your 2022-2023 FAFSA here
Click that you are new to the FAFSA and begin the 2022-2023 application. Why 2022-2023? Students always complete the FAFSA for the year they will be in school. DO NOT do the 2021-2022 application. You can submit FAFSA on or after October 1st.
Parents and Students (if applicable): Have your 2020 tax returns with you
Why 2020? FAFSA asks for financial information from two years prior to the year your student is entering college. So, if your student is enrolling in Fall 2022, you need your 2020 tax returns with you. For the following year you will need 2021 tax information for the 2022-2024 school year.
Use the IRS Data Retrieval Tool
The IRS Data Retrieval Tool allows you to transfer your tax information onto your FAFSA. Make sure the spelling and information contained in your tax returns EXACTLY matches your FSA ID and FAFSA or you will not be able to transfer. Unable to transfer? Don't worry, this happens to many families, and all individuals with the filing status of married filing separate. Instead, you will manually enter your tax information into FAFSA.
Students and Parents: Sign the FAFSA when you are finished
The FAFSA is not considered complete until both the student and the parent sign after they are finished.
Wait for an email confirmation and review your Student Aid Report
Your Student Aid Report includes your Expected Family Contribution (EFC). The EFC determines how much your family can pay for college. Remember, FAFSA does not give you money; it only determines how much a family can contribute to their child's education. A EFC of 0 does not mean that your family is not receiving any financial assistance. On the contrary, it means that your student is eligible for the full Federal Pell Grant of $6,345 (which is free money!).