FAFSA Mistakes That Cost You Thousands

Here, we’ll discuss the common FAFSA mistakes that students and their families make. These are costly mistakes, too, because they can cost you thousands in lost financial aid. But there’s good news: You can avoid these costly mistakes by being proactive about the FAFSA.

These aren’t based on theory either – these are from personal experiences. When I first filed my FAFSA, I didn’t double-check my entries and left a few questions blank. When my financial aid package came out, I was offered so little that it came as a shock. As a result, my out-of-pocket costs for college increased.

But all wasn’t lost either – I’ve learned my lesson. Today, I always check that I’ve filled out and submitted a correct and complete FAFSA. Otherwise, I can lose thousands of dollars in free money.

So, do you want to maximize your financial aid? If you do, read on and find out how to avoid common FAFSA errors.

What Is FAFSA and Why It Matters

The Free Application for Federal Student Aid (FAFSA) has these major characteristics.

It’s a government form that college students who want to get financial aid fill in and submit. Submit it even if you don’t think you’ll qualify for federal aid. Many other organizations use it for their financial aid programs, too.
It’s available in both the traditional paper and digital application formats. The digital application format is highly recommended. It’s faster to complete, provides immediate feedback, and offers faster processing time.
It’s used by the US Department of Education, state governments, and colleges. These institutions use it to determine a student’s eligibility for financial aid. It collects the necessary financial information to determine the Student Aid Index (SAI).
It’s the gateway to a wide range of student financial aid. Federal grants, loans, and work-study opportunities are foremost on the list. State-based agencies and colleges also use it for the same purpose.

You, the college student, have the ultimate responsibility to complete and submit it. If you’re a dependent, your parents must also provide their financial information. If you’re an independent student, your parents’ information isn’t needed.

Why file your complete and accurate FAFSA on or before the earliest deadline? You’ll get free money for your college education. With college students spending $38,270/year, on average, every dollar goes a long way.

But it goes beyond the affordability and accessibility of college education. This is also about getting the best value in your college education. What may seem unattainable – say, an Ivy League education – becomes possible.

Common FAFSA Mistakes That Cost You Thousands

Almost every college student has made these common FAFSA mistakes. So, if it’s any consolation, you’re not alone. But it doesn’t make these mistakes any less important to fix.

How much will you stand to lose when you make these mistakes? There’s no specific number of dollars for these federal aid amounts (2025-2026):

$7,395 Maximum federal Pell Grant

Up to $57,500 in total lifetime limit for loans (independent undergraduates)

Indeed, you can lose thousands of dollars in grants and loans with any of these FAFSA mistakes. But don’t despair, either, as you can avoid making them, too.

Not Submitting on Time (Missed Deadlines)

FAFSA deadlines mistakes are the most common and costliest. Why? You can completely miss out on need-based financial aid that uses FAFSA. These include scholarships and grants from the government, your college, and private organizations.

Keep in mind that FAFSA has three main deadlines:

The federal deadline usually falls on June 30 of the academic year for which you’re applying. For example, for the 2025-2026 academic year, it’s June 30, 2026 (11:59 pm CT). Note that the opening date usually starts on October 1, the year before. For example, it’s October 1, 2024, for the 2025-2026 academic year.
- Exceptions can occur. For example, the 2025-2026 FAFSA started limited beta access in October 2024. It was only in November 2024 that it fully opened.
- Submissions after the deadline aren’t accepted (i.e., no exceptions). But updates and corrections can be made until September 14, 2026 (11:59 pm CT).
The state deadline depends on each state. So, it’s best to keep track of your state’s deadlines, especially as these can be earlier than the federal deadline. Many states set a February or March deadline.
- Note that some state aid is awarded based on a first-come, first-served basis. The earlier you file your FAFSA, the higher your chances of getting it.
The college deadline differs, too, so check with your college. Your college’s financial aid office usually has the details.

Which of these three deadlines should you submit your FAFSA by? The earliest of the three, which is usually either the state or college deadline. Submitting your FAFSA on the federal deadline isn’t ideal – and if you must, it’s the last resort.

Leaving Blank Fields or Incomplete Information

The FAFSA can be overwhelming to fill in, especially for first-timers. Filling it in demands detailed financial information and uses unfamiliar terms, among others. Even the simplified FAFSA contains 18-36 questions depending on your circumstances.

But knowing how to fill out FAFSA correctly is a must if you want maximum aid. Leaving a field blank or submitting a FAFSA with incomplete information can lead to:

Processing delays, which can mean missing out on first-come, first-served financial aid
Getting less financial aid than you’re eligible for
Automatic disqualification, especially in the case of missing vital information

Before anything else, familiarize yourself with the FAFSA; print it and use it as a draft, if you have to. You can avoid FAFSA mistakes by doing so.

Be prepared with the following information, among others.

Personal information (Full legal name, SSN, date of birth, and FSA ID, among others)
School information (High school attended, year in school, and degree/certificate)
Dependency status (Dependent or independent)
Financial information (Income and assets, current bank balances, and net worth of businesses)
Household information (Household size and members attending college)

You must sign your FAFSA using your FSA ID and one parent (if dependent). No signature, no FAFSA processing.

Using Incorrect Tax or Income Information

Again, the FAFSA contains financial information that determines your financial aid eligibility. Your financial aid package – what you’re eligible to receive in dollars – depends on it.

So, if you input incorrect financial data, you can face consequences, including:

Receiving less aid than you deserve, given your circumstances. You’re more likely to pay more for out-of-pocket costs and take on more student loans.
Getting more aid than you’re actually eligible for. You may have to repay the excess funds or, worse, lose your future aid eligibility.
Being flagged for verification can delay processing or cause a hold on your offer.

The bottom line: Be careful about the financial information you put into your FAFSA. In fact, it’s among the foremost FAFSA tips for students.

Forgetting to Sign and Submit

It sounds simple enough, but it’s easy to miss putting your signature on your FAFSA form. But it’s crucial to do so for many reasons:

It’s your attestation to the completeness and accuracy of your FAFSA form.
It authorizes the US Department of Education to verify your federal tax information.
It means you agree to the terms and conditions of federal student aid.

Remember that providing false information has legal consequences. Repayment of aid, fines, or criminal charges is common.

Plus, your signature is a must for your FAFSA to be submitted and processed. No signature means an incomplete application.

Not Listing All Eligible Schools

Only the colleges that you’ve listed on your FAFSA will:

Receive your financial aid information
Consider your application for financial aid

So, if you forget the colleges that you’re applying to, you miss out on opportunities. Even if you get accepted, you won’t receive a financial aid offer because of the oversight.

As a result, you may pay the full tuition and fees out-of-pocket – unless you can get financial aid from other sources. You missed out on thousands of dollars of free money to fund your education.

Skipping the Renewal/Update Process Each Year

It’s among the costliest FAFSA financial aid mistakes because it isn’t a one-time application. There’s no automatic renewal for it. You must submit your FAFSA every year to remain eligible for federal financial aid.

Here are more reasons why you should renew your FAFSA every academic year.

Your financial situation and, thus, your aid eligibility may change. The federal government may also apply new eligibility rules and aid packages.
Your college may offer new aid packages for the year. By updating your FAFSA, you can keep up, even get the maximum aid package.

Indeed, it’s easy to make mistakes at one point or another during the FAFSA process. But a proactive approach can lessen – or better yet, eliminate – them.

How to Avoid FAFSA Mistakes

Here’s a step-by-step guide on how to avoid FAFSA application errors.

Be prepared as early as possible.

Don’t wait for the last minute.

Prepare your financial documents early. These include your most recent federal tax returns, W-2 forms, and bank statements.
Print the online FAFSA and use it as a draft. You can also use the FAFSA worksheet as your draft.
Write the required information in your draft. Check that, indeed, all pieces of information are correct and complete. Then, enter the information into the digital FAFSA.

Always double-check your entries.

You can never be too sure about your entries.

Double-check your Social Security Number (SSN). It must match exactly what’s written on your Social Security card.
Use the IRS Direct Data Exchange (DDX) to import tax information directly into FAFSA. Doing so eliminates manual inputs and, thus, reduces errors. Check that the correct tax year applies – “prior-prior year”. For example, the 2025-2026 FAFSA uses 2023 tax information. However, mistakes can still happen, so correct them immediately.

Be mindful of deadlines.

A missed deadline is a missed opportunity for free money.

Mark all deadlines and review them on a regular basis. Use a reminder app or a digital calendar to track these deadlines.
File your FAFSA at the earliest deadline.

Avoid leaving blank fields.

Otherwise, your FAFSA application can be put on hold for incomplete information.

Use the help section if you’re in doubt about what to enter.
Be sure to review your inputs before proceeding to the next step.
List all potential colleges that you’re interested in or applying to. You can list up to 20 colleges.

Sign and submit your FAFSA.

This is the final step, so you should get it right.

Create your FSA ID and ensure that it’s stored securely.
Sign and submit your FAFSA. Double-check that, indeed, you’ve signed it and hit the “Submit My FAFSA Now” button.
Check your confirmation email to ensure that, indeed, you’ve submitted your FAFSA. Save your submission receipt, too.

More importantly, use official FAFSA help resources such as:

Federal Student Aid Information Center (FSAIC)
Built-in “Help and Hints”
FAFSA workshops offered by schools

The more accurate your FAFSA, the higher your chances of paying for college with free money.

Maximizing Your FAFSA Return

Here are tips on how to maximize FAFSA aid and make it worth your time.

Ensure that every piece of information in your FAFSA is accurate and complete. The more accurate it is, the more aid you can get.
Re-file your FAFSA every academic year. Skipping a single year can lead to negative consequences, as mentioned above. Use the “renewal” option for a faster process.
Look beyond federal aid. Explore school-based scholarships, grants, and work-study opportunities, too. Ask about military educational benefits, tuition waivers and discounts, and more.

Final Thoughts: Don’t Leave Money on the Table

Now that you know these FAFSA do’s and don’ts, it’s time to take action. You should fill in and submit a complete and accurate FAFSA every academic year.

On our website, we provide reliable information so you can get the most value out of college. By value, we mean a balance between quality and affordability.

So, take the time to get FAFSA right—you’ll thank yourself later.