FAFSA and Parents' Income

I'm not sure how everything works with financial aid, especially related to the FAFSA. How significant of a role does my parents' income play in my eligibility? Is it going to prevent me from receiving financial aid or will it just impact the amount I can get?

Your parents' income can have a significant impact on your eligibility for federal financial aid and the amount you might receive, but it does not act as an outright barrier to aid. When filling out the Free Application for Federal Student Aid (FAFA), your parents' income and assets, along with your own, are analyzed together to determine your family's Expected Family Contribution (EFC), which, as of July 2023, has been renamed as the Student Aid Index (SAI).

The SAI is used to determine your financial need, which is calculated by subtracting your SAI from the cost of attendance (COA) at the college or university you plan to attend. If the COA exceeds your SAI, you demonstrate financial need, and you may be awarded need-based aid, such as Direct Subsidized Loans, Federal Pell Grants, or Federal Work-Study opportunities.

It's important to note that a higher family income might result in a higher SAI, possibly reducing the amount of need-based aid you could receive. But it's also crucial to remember that the FAFSA evaluation is a nuanced procedure, considering other factors like your parents' age, the number of siblings you have in college, and the value of your parents' assets along with their income.

Also, regardless of income, all eligible students can receive some type of non-need-based federal student aid, such as an Unsubsidized Loan. Private scholarships and merit-based aid opportunities are another path for financial support that often don't take family income into account.