It’s a common misconception that the Free Application for Federal Student Aid (FAFSA) is only relevant for families with financial need. In reality, completing the FAFSA can benefit all families — including those with significant income or assets. Here are a few important reasons why it’s still worth filing:

1. You May Still Qualify for Certain Types of Aid

Even if you don’t expect to receive need-based financial assistance, completing the FAFSA can make your student eligible for other types of aid. Merit-based scholarships — which are awarded based on academic, athletic or extracurricular achievement — often require a FAFSA on file. Additionally, some state and institutional aid programs use their own formulas for determining eligibility, which may consider factors beyond income.

2. Some Colleges Require the FAFSA for Merit-Based Awards

Many colleges and universities — particularly private institutions — require a completed FAFSA to award merit scholarships. Skipping the form could mean your student is not considered for valuable scholarship dollars they would otherwise qualify for based on their accomplishments.

3. It’s Required for Federal Loans and Institutional Programs

If your student wants access to federal student loans, including the low-interest Direct Unsubsidized Loan, a FAFSA must be on file — regardless of your family’s income. In addition, some schools require a completed FAFSA for tuition payment plans, institutional aid programs, or emergency assistance funds.

Reminder: The Federal Deadline to File the FAFSA Is June 30

Even if you don’t anticipate needing financial aid, completing the FAFSA ensures your student remains eligible for the full range of available funding options. It’s a simple step that can preserve flexibility and opportunity. You can start your FAFSA by visiting https://studentaid.gov/h/apply-for-aid/fafsa.

For more questions about planning for college, contact a Fiduciary Investment Advisor at American Trust Wealth.