The Ultimate FAFSA Toolkit

The Money Class You Never Got in School

How to Fill Out FAFSA (Step-by-Step) and Maximize What You Get

If you’re headed to college or continuing your education, filing your FAFSA (Free Application for Federal Student Aid) should be one of the first things you do. It’s the key to unlocking grants, federal loans, and even some scholarships from your school. But it can be overwhelming if you’ve never done it before.

This guide walks you through the FAFSA from start to finish—plus smart tips to make sure you’re not leaving free money on the table.

1. What Is the FAFSA?

The FAFSA is a government form that determines how much financial aid you’re eligible for. It looks at your (and sometimes your parents’) income, household size, and other factors. Once submitted, it generates a number called your Student Aid Index (SAI), which schools use to calculate your aid package.

2. Know the FAFSA Deadlines

• Federal Deadline: Usually June 30
• State Deadlines: Vary (many are earlier—check your state!)
• School Deadlines: Check with each college

MoneyMode Tip:
File your FAFSA as close to October 1st as possible—even if you haven’t picked a college yet.

3. Create Your FSA ID

Before you can start the FAFSA, you (and your parent, if you’re a dependent) need an FSA ID. This is your login for all federal aid systems.

Create your FSA ID here.

4. Gather What You’ll Need

• Your Social Security Number
• Your driver’s license (if you have one)
• Your 1040 federal tax return from two years prior
• W-2 forms or income records
• Bank statements
• Records of untaxed income
• Your parents’ financial info if you’re a dependent

5. Go to FAFSA.gov and Start the Application

1. Select the correct FAFSA year
2. Enter your personal and contact info
3. List every school you’re applying to (up to 20)
4. Answer dependency questions
5. Use the IRS Data Retrieval Tool if available
6. List assets (excluding retirement funds)

6. Understand How Income Affects Aid

Here’s how average Pell Grant awards drop off as income increases:

Under $30k

$6,500

$30k–$60k

$4,000

$60k–$90k

$2,000

$90k–$120k

$500

Over $120k

$0

7. Common FAFSA Mistakes to Avoid

• Missing the deadline
• Leaving blanks instead of entering 0 or N/A
• Not listing all potential schools
• Entering retirement savings as assets
• Using incorrect tax info

8. What Happens After You Submit

You’ll get a Student Aid Report (SAR) with your Student Aid Index (SAI). Schools use this to determine your aid package. You may be offered:

• Pell Grants
• Federal Work-Study
• Subsidized Loans
• Unsubsidized Loans

9. Renew Every Year

FAFSA isn’t one-and-done. You’ll need to refile each academic year, especially if your family’s financial situation changes.

10. Track It All

Once your aid is awarded, budget it wisely. Use YNAB (You Need a Budget) to manage tuition, rent, books, and expenses in real-time.

Try YNAB free with my link here

You’re in MoneyMode now. And with FAFSA done right—you’ve got options.