Here, we’ll discuss the common FAFSA mistakes with significant consequences. Remember that the FAFSA isn’t only used for federal financial aid. States, such as California, Texas, and New York, use it for their financial aid programs, too. Colleges and universities also use it for their need-based scholarships.
Indeed, you must provide accurate and complete information on the FAFSA form. Even the smallest mistakes can result in negative consequences, including:
- Decrease in your financial aid awards
- Delay in the processing of your financial aid application
- Being flagged for incorrect or incomplete information (i.e., verification)
- Denial of your financial aid application
There’s no excuse to commit common FAFSA errors when you’re aware of them.
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Missing the FAFSA Deadline
If you’re a first-timer, you’re more than likely to commit many FAFSA application mistakes. But the worst mistakes you can make are FAFSA deadline mistakes.
Overview of Federal, State and School-specific FAFSA Deadlines
The federal FAFSA deadline is usually June 30 of the academic year you’re applying for. Note that it’s the last possible date, and it’s only up to midnight in your time zone.
Besides the federal deadline, states and colleges also have their own deadlines. Often, their deadlines are earlier than the federal deadline.
States, for example, can set their deadlines in February, March, or April. Colleges have different deadlines. It isn’t uncommon for colleges to set a November or December deadline (i.e., the year before your college entry).
Importance of Filing Early and Setting Reminders
So, you must file your complete and accurate FAFSA as early as possible for many reasons. First, you’ll have ample time to make corrections or submit more documents. Second, you’ll be first in line for first-come, first-served grants and scholarships. Third, you’ll have more time to explore other financial aid options.
Be sure to set reminders and alarms so you don’t miss deadlines. Digital calendars are excellent for this purpose.
Entering Incorrect Personal Information
Entering incorrect information is a common mistake. Even a misplaced letter or number can become a big issue.
Common Errors in Entering Personal Information
The FAFSA requires your full legal name, birth date, and Social Security Number (SSN). These are also where you’re most likely to make mistakes.
- Name mismatch: Your full legal name must match the name indicated on your Social Security card and driver’s license. Furthermore, it must match the name on your official academic records. Check for letters, hyphens, and spaces, among other small details.
- Mismatched birthdate: Your birthdate on the FAFSA must match that on your Social Security card. Check your other official documents, too.
- Incorrect Social Security Number (SSN): Your FAFSA SSN must match the number issued by the Social Security Administration.
How to Double-check Details with Official Documents
The best step on how to avoid FAFSA mistakes is scanning or reviewing the FAFSA form first. Better yet, print it out and understand its requirements. Then, use it as a draft where you can fill in and erase mistakes as needed.
On the online FAFSA form, check and double-check the entries. Refer to your Social Security card and other government-issued IDs to fill them in. Ask another person to check the personal information entries.
Confusing Dependent and Independent Student Status
No FAFSA online application tips will be completed without mentioning their status. We’re talking about the difference between FAFSA dependent vs independent status.
Explanation of Dependent vs. Independent Criteria
The U.S. Department of Education set specific criteria for dependent and independent students.
Dependent students are individuals who:
- Are dependent on their parents (or guardians) for financial support (i.e., their parents’ or guardians’ financial information must be reported)
- Under 24 years old
- Unmarried
- Not a graduate student
- Not a veteran
- Don’t have dependents who depend on them for financial support
Independent students are individuals who: (You must meet at least one of these criteria)
- 24 years old (or older) by December 31st of the academic year in which they are applying
- Married
- Working on a graduate or professional degree
- Current active-duty military or veteran
- With legal dependents other than a spouse (e.g., children)
- Foster child, orphan, under legal guardianship, or a ward of the court
If you’re unsure, it’s best to ask a financial aid officer for clarification.
How Misreporting Status Can Impact Aid Eligibility
There are serious consequences on your financial aid eligibility, including:
- Reduced financial aid package
- Disqualification from certain types of financial aid
- Delays in processing
- Ineligibility for parent PLUS loans
Indeed, giving incorrect FAFSA information isn’t advisable. It doesn’t matter if it was an honest mistake or not, too.
Reporting Incorrect Income Information
Making FAFSA parent income mistakes has a significant impact on financial aid offers. Total income will affect the amount you’ll be offered as financial aid.
Errors in Reporting Parent/Student Income
For dependent students, common mistakes include:
- Excluding non-taxable income, such as child support, veterans’ non-education benefits, and workers’ compensation
- Misreporting taxable income, such as wages, investment income, and business earnings
- Reporting income from the incorrect tax year
For independent students, common mistakes include:
- Confusing taxable and non-taxable income
- Failing to report all sources of income, no matter how small it may be
Importance of Using the IRS Data Retrieval Tool (DRT)
The best way to reduce these errors is to use the IRS Data Retrieval Tool (DRT). You can automatically import information from your tax returns to your FAFSA.
Doing so means:
- Reporting the correct taxable income
- Handling non-taxable income correctly
- Entering the correct tax year
Using it is fast and easy, too.
Not Listing the Correct Schools
Yes, making FAFSA corrections online is easy. But that’s not a valid excuse to make many FAFSA mistakes, either.
Why List Multiple Schools
Among the common mistakes are not listing up to 10 colleges and not listing the correct colleges. You must submit a complete and correct list of schools for these reasons:
- Ensure that the schools you’re interested in receive your financial aid information.
- Boost your chances of getting financial aid awarded on a first-come, first-served basis.
- Maximize your financial aid options.
Adding or Updating School Choices After Submission
Here’s how to fix FAFSA errors related to school choices.
- Log in to your FAFSA account using your FSA ID.
- Click “Make FAFSA Corrections”.
- Go to the “School Selection” section.
- Remove, add, or rearrange the order of the schools listed (List your top choice first).
- Enter the school codes.
- Click “Submit” once you’re done.
- Check for confirmation from the school or a confirmation email.
Make updates to schools before the federal FAFSA deadline. This way, your preferred schools have enough time to review your application.
Skipping the Required Signatures
It’s simple – no valid signatures on your FAFSA, no processing of application.
Why Both You and Your Parent, If Applicable, Must Sign Electronically
You, the student, are the primary applicant for federal financial aid. As such, your signature must be on the FAFSA. If not, it won’t be accepted for processing. Your eligible parent, if you’re a dependent, must also sign your FAFSA form.
Creating an FSA ID to Sign and Submit Properly
Take note of these easy steps.
- Visit the FSA ID page at studentaid.gov
- Click “Create an FSA ID”.
- Provide an active personal email address.
- Create a username and password.
- Answer a series of security questions.
- Verify your email address and identity.
Your eligible parent, if applicable, must also create a separate FSA ID. You and your eligible parent will then use your separate FSA IDs to sign your FAFSA form electronically.
Ignoring FAFSA Verification Requests
The FAFSA application process also involves verification procedures. Don’t panic if you receive a request for verification. Just follow the steps, and you should be good.
What Is FAFSA Verification?
Both the U.S. Department of Education and colleges can request for verification. It’s a process to confirm the correctness and completeness of information.
Common reasons for verification include:
- Random selection
- Discrepancies in the information provided
- Need-based aid usually requires more verification
- Conflicting information
- Unusual financial circumstances
How to Quickly Submit Required Documents
Be sure to act promptly on a request for verification.
- Review the request including the missing FAFSA documents, if any, for submission.
- Gather the required documents, such as tax documents, W-2 forms, and proof of relationship. A verification worksheet may also be required.
- Submit the required documents ASAP.
Be sure to keep copies, too. You should communicate with the financial aid office if you have concerns.
Forgetting to Update FAFSA for Each Year
The FAFSA isn’t a one-time application. Instead, you must complete and submit it every year that you’re enrolled in college.
Reasons for Filing Every Year
Yes, it can be a hassle to file a new FAFSA form every year. But it’s a must for the following reasons:
- Changes in your financial circumstances (e.g., increase or decrease in family income)
- Maintain continued eligibility for the academic year
- Changes in your enrollment status (i.e., part-time or full-time)
- Changes in your choice of college
Renewing Your FAFSA Efficiently with Pre-filled Information
Fortunately, you don’t have to start from scratch. Your pre-filled information makes a new application more efficient.
- Log in to your FAFSA account using your FSA ID.
- Click “Renew Your FAFSA”.
- Check the pre-filled information for correctness and completeness.
- Update your financial information, school choices, and other relevant information.
- Sign and submit your renewal FAFSA application.
Be sure to monitor it, too, and respond to verification requests promptly.
Incorrectly Reporting Assets
Among the serious financial aid application errors is the incorrect reporting of assets. It’s a common mistake because of the definition of reportable assets.
What Should And Shouldn’t Be Reported As Assets
Here are assets that must be reported on the FAFSA form.
- Funds in savings accounts, checking accounts, and other liquid accounts
- Investments, including stocks, mutual funds, bonds, and trust funds
- Real estate properties except for the family’s primary home
- Business and/or farm assets with exceptions
If you’re unsure, ask a financial aid advisor.
Here are the assets that shouldn’t be reported.
- Primary residence
- Retirement accounts, including retirement savings
- Personal property, including jewelry, vehicles, and personal items
- Life insurance policies
How Misreporting Assets Can Affect Financial Aid
Both omission and incorrect reporting of assets have serious consequences.
- Reduced financial aid package if you overreport assets
- Potential for penalties if you underreport assets
- Delays in processing and disbursement of funds
Again, you should ask for professional guidance if you’re unsure.
Not Reviewing the FAFSA for Errors Before Submitting
With funds for your college education at stake, you can’t afford to be sloppy.
Why Review All Entries Before Submission
You must always check and double-check every information on your FAFSA before submission. Here’s why.
- Prevent incorrect or incomplete entry of personal information (e.g., typos)
- Ensure submission of complete and accurate financial information
- Reduce the risk of being selected for verification due to missing or incorrect information
Ask for your parents’ and peers’ help to review your application, if possible.
Using the FAFSA Correction Tool
But to err is human. Fortunately, you can use the FAFSA correction tool for this purpose.
- Log in to your FAFSA account.
- Go to the “Make a Correction” page.
- Make the necessary corrections.
- Sign and submit it once you’re sure of its accuracy.
Conclusion: Stay Alert and Maximize Your Financial Aid
In conclusion, if you want to avoid FAFSA rejection, avoid these common mistakes:
- Missing the federal, state, and college FAFSA deadlines
- Entering incorrect personal information
- Confusing between dependent and independent student status
- Reporting incorrect income information
- Not listing the correct schools
- Skipping the required signatures
- Ignoring FAFSA verification requests
- Not updating the FAFSA every year
- Incorrectly reporting assets
- Not making a final review before submission
Indeed, you must stay alert during the entire process. You can maximize your financial aid if you’re aware.
Better yet, seek help from FAFSA support experts or financial aid offices. You and your parents don’t have to do it alone. Teamwork makes the college dream work.