What is the Income Limit for FAFSA 2023?

What is FAFSA?

The Free Application for Federal Student Aid (FAFSA) is the form you must complete in order to receive federal financial aid to help pay for college. The US Department of Education awards over $120 billion in grants, work-study, and low-interest loans to over 13 million students who file the FAFSA each year.

Many states and colleges also use the FAFSA to determine which students will receive financial aid and how much they will receive.

Because the FAFSA requests information about your and your family’s finances, including tax returns, you’ll need the assistance of your parents to complete it.

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How Does FAFSA Work?

Students must first create a Federal Student Aid (FSA) ID before completing an online FAFSA. Students must provide a Social Security number, information about their family and personal income, and a list of prospective schools when applying. Students should double-check the form after filling it out to ensure accuracy. After the form is digitally signed, all selected schools will receive the application.

Following the evaluation of their applications by the Department of Education, each candidate receives an offer of aid, which varies by student. Loans, grants, scholarships, and work-study awards are all financial aid options that students can accept or reject. Each learner receives notification of the disbursement date after accepting aid.

Students are also given an expected family contribution (EFC) number, which is the amount of money determined by the FAFSA that the student or their family can afford to pay toward college tuition. The amount of financial aid a student receives is directly proportional to their EFC.

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FAFSA Income Limit

The United States Department of Education provides need-based federal financial aid packages to qualified students. To be eligible, you must complete the FAFSA.

The eligibility process, however, does not include a hard cutoff for FAFSA income limits. Instead, the application takes into account a variety of factors when determining how much aid you’ll receive and your expected family contribution (EFC).

What Is EFC?

The primary categories used to calculate your expected family contribution are as follows:

• Untaxed income

• Assets

• Benefits, such as Social Security or unemployment

It is possible to qualify for an automatic zero EFC calculation, which would provide you with the most assistance. In the 2022-23 school year, the FAFSA income limit for this situation is $27,000 in adjusted gross income.

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Originally posted on September 19, 2022 @ 9:44 am