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We're here to clear those up FAFSA myths you may have heard!
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Let’s be honest—filling out the FAFSA can feel like a massive task. With all the acronyms, forms, deadlines, and pressure to “do it right,” it’s easy to feel overwhelmed. Add in opinions from friends, family, and social media, and suddenly you're left trying to untangle a web of myths and misinformation.
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But here’s the truth: the Free Application for Federal Student Aid (FAFSA) is the gateway to a wide range of financial support. It’s not just about federal grants or loans. The FAFSA helps determine what aid you qualify for from your state, your college, and even private scholarship providers. Yet every year, students miss out on thousands of dollars simply because they believe myths that just aren’t true. We're here to clear those up, based on the most up-to-date FAFSA information for the 2025–2026 school year.
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This is one of the most common (and costly) assumptions. The FAFSA doesn’t rely solely on income. Instead, it uses the Student Aid Index (SAI)—a formula that considers multiple financial factors, like family size, how many kids are in college, and your household’s cost of living. Even if your family’s income seems too high, you might still be eligible for aid after everything is factored in.
Plus, filling out the FAFSA isn’t just about qualifying for grants. Many students use the FAFSA to unlock federal student loans, which come with better interest rates and repayment options than private loans. Schools also use FAFSA information to award scholarships and work-study jobs. We’ve seen students from households earning over $100,000 still qualify for need-based aid because of other financial circumstances.
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While FAFSA does determine your eligibility for federal grants and loans, it’s also the application most colleges and states rely on to award their own financial aid. This means that by skipping the FAFSA, you’re also potentially missing out on state-based grants, college-specific scholarships, tuition discounts, and private awards that require demonstrated financial need. In other words, the FAFSA opens doors far beyond just what the government offers—it’s your key to almost all types of financial help.
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Waiting is a big mistake. The FAFSA opens October 1, 2025 for the 2026–2027 school year. Many state and college financial aid programs have limited funds and award aid on a first-come, first-served basis. Even if you don’t have every tax document in hand, it’s better to submit early using estimated information than to miss out on aid. Thanks to the IRS Direct Data Exchange, most of your income information can now be imported directly from your tax return. You can always update or correct your FAFSA later if needed.
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This is false. Only the student applying for aid needs to be a U.S. citizen or eligible non-citizen. Your parents’ citizenship or immigration status does not prevent you from completing or receiving financial aid through the FAFSA. If your parent doesn’t have a Social Security Number, you can enter “000-00-0000” on the application. While they won’t be able to create an FSA ID, they can still sign your application using a printed signature page or alternate method provided on the FAFSA site. Don't let this myth stop you—your eligibility stands on your own citizenship, not your parents’.
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Many students don’t realize that you need to complete the FAFSA every single year you plan to attend college. Financial aid is not a one-time application—it’s an annual process. Even if your situation hasn’t changed, updated federal formulas and college policies could affect your aid. In some cases, reapplying may even result in more support, especially if your family’s financial situation has changed. Set a reminder to complete it as soon as it opens on October 1 each year.
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The redesigned FAFSA is actually more user-friendly than ever. In many cases, families only need to answer around 36 questions. Most tax-related information is pulled in automatically through the IRS Direct Data Exchange. You can even save your progress and come back later. If you run into trouble, FAFSA’s online chat support and resources from school counselors or community organizations can help guide you through it. And of course, our College Funding Hero team provides FAFSA walkthroughs inside the Fund Your Future portal to help you avoid mistakes and get it done right.
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Many students think loans aren’t "real aid," but that’s not true—especially when we’re talking about federal student loans. Federal loans typically offer lower interest rates and more flexible repayment terms than private loans. They also come with protections like deferment, income-based repayment, and even loan forgiveness for certain careers (like teaching or public service). Even if grants or scholarships aren’t part of your aid package this year, having access to these federal loans can make your college journey more manageable. And remember, your aid package can always change later—especially if you appeal or apply for more scholarships.
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Filing the FAFSA can be intimidating, but it’s a crucial step toward making college affordable. And skipping it—or believing the myths above—can cost you thousands in free aid. For 2025–2026, the FAFSA opens on October 1, 2025. The maximum Pell Grant is $7,395, and eligibility is determined using the Student Aid Index (SAI) instead of the old EFC system. You’re allowed up to 12 full-time semesters of Pell eligibility, and your financial aid must be renewed every year.
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Inside the Fund Your Future student portal, the team at College Funding Hero uploads:
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No guesswork. Just real help to make college affordable.
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👉 Click here to join the student portal and get the support you need to make FAFSA season stress-free.
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