Submitting a Free Application for Federal Student Aid (FAFSA) is the first step in accessing college funding, regardless of your income. Although there are some broad requirements you must meet to qualify for federal aid, there’s no FAFSA income limit.
The FAFSA’s calculations are complex and consider many factors outside of your earnings, including your school’s cost of attendance, your family size, and your year in school. Here’s how your income affects the FAFSA, how to fill out an application, and alternative funding to explore.
What are the FAFSA income limits?
A common myth is that students from high-income families won’t qualify for FAFSA funding. In reality, there’s no maximum income cap that determines your eligibility for aid.
Although your earnings are a factor on the FAFSA, only some programs are based on need. The FAFSA also provides access to non-need-based programs that you might qualify for if you meet thebasic applicant requirements:
- Be a U.S. citizen, permanent resident, or eligible noncitizen.
- Have a Social Security number.
- Qualify to get a higher education, such as holding a high school diploma or GED.
- Be enrolled in an eligible degree or certification program.
- Enroll at least half-time to qualify for federal student loans.
- Maintain satisfactory academic progress, based on your school’s definition.
- Not be in default on an existing federal student loan, or owe money on a federal grant.
As long as you can meet these requirements, you can apply for aid through the FAFSA.
Related:Federal vs. Private Student Loans: 5 Differences
How financial aid is calculated
The way your federal aid offer is determined is complicated. There are many factors that contribute to which programs you’re eligible for, and how much aid you’re offered.
Here’s a table with some of the biggest contributors to your financial aid calculation:
To determine how much aid you qualify for, your school’s financial aid administrator subtracts your EFC from the cost of attendance. The remaining amount is your “financial need,” which determines how much need-based aid you’re eligible for, if any.
In a separate calculation, the difference between the school’s cost of attendance and any financial aid you’ve been awarded thus far is how much non-need-based aid you can receive.
Find Your Student Loan
Types of federal financial aid
There are many different federal aid programs that the FAFSA can help you unlock. However, these options fall under two overarching types: funds that don’t consider your income or need-based aid meant for low-income students.
Not based on income
Most federal student loans aren’t based on financial need, including Direct Unsubsidized Loans and PLUS loans.
Direct Unsubsidized Loans are offered to undergraduate and graduate students. Interest starts accruing on the loan as soon as the funds are disbursed, but you won’t have to make payments until after you leave school.
Another borrowing option is aDirect PLUS Loan. This program is available to graduates and professional students, as well as parents of dependent undergraduates. It requires a credit check, though only “adverse credit,” such as a recent bankruptcy, repossession, or foreclosure, is a factor.
Need-based aid
Students who qualify can access impactful awards by submitting the FAFSA. If your school determines that you have financial need, you might be eligible for a Direct Subsidized Loan.
Subsidized loans are available to undergraduate students only. The biggest benefit is that the government pays for any interest that accrues during deferment — including while you attend school — and your grace period. You’re responsible for interest costs once your loan enters active repayment.
Additionally, students who demonstrate “exceptional financial need” have access to programs like the federalPell Grant, which is designed for low-income applicants. Grant awards can change annually, and typically don’t have to be repaid. For the 2023-24 year, the maximum Pell Grant award is $7,395.
Another need-based program isfederal work-study, which offers undergraduate and graduate students part-time work opportunities on- and off-campus. It guarantees at least a federal hourly minimum wage, but there are restrictions to ensure you maintain satisfactory academic progress. For example, you may be restricted in how many hours you can work.
How to complete the FAFSA
It’s typically easiest to complete your FAFSA online atStudentAid.gov, but you can also print a PDF version of the FAFSA to submit.
To start, you’ll log in with your Federal Student Aid (FSA) ID — or create an ID if you haven’t already. Once you begin the form, the FAFSA will ask for your Social Security number, driver’s license number, tax information, asset statements, and other documents for untaxed income. If you’re adependent student, you’ll also need to include a parent’s information.
Even if you think your family earns too much money, it’s worth submitting the FAFSA. It’s a free process that could unlock thousands of dollars in various awards; even a few hundred dollars in aid can help cover the cost of textbooks for a semester.
Additionally, states, schools, and third-party sources that offer scholarships or grants often require a filed FAFSA to apply. Skipping out on this form could leave you ineligible for other types of aid.
Related:How to Apply for FAFSA: Deadlines, Tips, and FAQs
Alternatives to FAFSA funding
If you need more aid than the FAFSA awards you, or you’re otherwise ineligible for federal aid, here are other ways to pay for college:
- Scholarships or grants:These forms of financial aid typically don’t have to be repaid, and can be found through your school, state, professional associations, private organizations, and nonprofits. Start your search with theDepartment of Labor’s scholarship search tool.
- Tuition reimbursem*nt:An increasing number of employers offertuition reimbursem*nt benefits to their employees. If you’re working, ask your human resources department if it covers all or a portion of tuition fees for employees — or consider switching to a company that does.
- Private student loans:Sometimes your federal financial aid doesn’t cover all your college costs. In that case, aprivate student loan can help you bridge the gap. Private loans offer fixed or variable rates, and different repayment terms depending on your lender. Always compare multiple private student loan rates to ensure you find the best fit for your needs.
4.94.9
Credible rating
Fixed (APR)
4.07% - 15.48%
Loan Amounts
$1,000 up to 100% of the school-certified cost of attendance
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
View Details
Overview
College Ave offers a wide range of in-school loans for nearly every type of degree. There are a number of repayment options, and borrowers can choose a unique eight-year repayment term. Plus, graduate, dental, and medical students receive extended grace periods.
You may get easy funding for multiple years — 90% of undergraduates are approved for additional student loans when they apply with a cosigner. However, it can be difficult to remove a cosigner for your loan later on, as you must complete at least half of your repayment term before becoming eligible. That’s significantly longer than some lenders, which may only require one to two years of payments before releasing a cosigner.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
After half of the scheduled repayment period has elapsed
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Read full review
4.84.8
Credible rating
Fixed (APR)
4.09% - 15.66%
Loan Amounts
$2,001* to $400,000
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
View Details
Overview
Ascent offers several unique borrowing options that you don’t typically see with private lenders. In addition to traditional student loans for undergraduate, graduate, and medical programs, college juniors and seniors may qualify for its Outcomes-Based Loan — which doesn’t require established credit or a cosigner. Instead, Ascent reviews alternate factors such as your school, major, and GPA to determine your eligibility.
Ascent also offers a wide range of loan terms and repayment plans to choose from. You may even qualify for its Progressive Repayment plan, which allows you to start with small payments that gradually increase over time. Borrowers who use a cosigner can release them after as few as 12 payments, though international students don’t qualify for this option.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
5, 7, 10, 12, 15, or 20 years
Loan amounts
$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates
Cosigner release
12 months
Eligibility
Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Read full review
4.44.4
Credible rating
Fixed (APR)
4.43% - 14.04%
Loan Amounts
$1,000 to $99,999 annually ($180,000 aggregate limit)
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
View Details
Overview
Powered by Cognition Financial, Custom Choice offers student loans for undergraduate and graduate students starting at $1,000. You can borrow up to $99,999 per year with a total aggregate limit of $180,000.
If you apply with a cosigner, you may be able to release them from your loan after 36 on-time payments. You can also receive a 0.25 percentage point discount on your interest rate by setting up autopay, as well as a 2% reduction of your principal balance after graduating.
Custom Choice doesn’t charge application, origination, prepayment, or late fees. It also lets you pause payments through forbearance if you qualify for its natural disaster or unemployment protection programs.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
7, 10, or 15 years
Loan amounts
$1,000 to $99,999 per year (lifetime limit of $180,000)
Cosigner release
36 months
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. You must also meet Custom Choice’s underwriting criteria for income and credit, or apply with a cosigner who does. Eligible noncitizens such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Read full review
4.34.3
Credible rating
Fixed (APR)
4.50% - 15.49%
Loan Amounts
$1,000 up to 100% of school-certified cost of attendance
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
View Details
Overview
Sallie Mae offers the Smart Option Student Loan to undergraduate and graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, it may be easy to get reapproved for your future years of study — undergraduates have a 97% approval rate when they return to Sallie Mae with a cosigner.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, bar study, medical school, medical residency, dental programs, dental residency, and other health profession programs. However, this lender no longer offers a career training loan.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
10 to 15 years for Smart Option Student Loan; up to 15 years for law school and bar study loans; up to 20 years for medical school, medical residency, dental school, dental residency, and health professions loans
Loan amounts
$1,000 up to school-certified cost of attendance
Cosigner release
12 months
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens may qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.
Read full review
4.64.6
Credible rating
Fixed (APR)
4.56% - 8.34%
Loan Amounts
$1,001 up to 100% of school certified cost of attendance
Min. Credit Score
670
Check Rates
on Credible’s website
View Details
Overview
INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.
INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.
Interest rates
Fixed or variable
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
5, 10, or 15 years
Loan amounts
$1,001 minimum, up to the school certified cost of attendance
Cosigner release
12 months
Eligibility
Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.
Read full review
4.84.8
Credible rating
Fixed (APR)
5.35% - 7.95%
Loan Amounts
$1,500 up to school’s certified cost of attendance less aid
Min. Credit Score
670
Check Rates
on Credible’s website
View Details
Overview
Massachusetts Educational Financing Authority (MEFA) is a not-for-profit lender that offers low-cost undergraduate and graduate school loans to students nationwide. While only fixed-rate loans are available, interest costs may be lower than what you see with other private loans.
While you can apply with a cosigner to lock in the best rate possible, removing that cosigner later may be tough. Only one repayment plan allows cosigner release, and you must make four years of consecutive on-time payments and meet other credit and income requirements to qualify.
Interest rates
Fixed
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
10 or 15 years
Loan amounts
$1,500 minimum up to school-certified cost of attendance
Cosigner release
48 months
Eligibility
Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.
Read full review
4.84.8
Credible rating
Fixed (APR)
5.99% - 14.00%
Loan Amounts
$1,000 to $350,000 (depending on degree)
Min. Credit Score
720
Check Rates
on Credible’s website
View Details
Overview
Citizens offers a variety of student loan types, including loans for undergraduates, graduate students, and parents. Perhaps the most unique feature of Citizens student loans is the option for multiyear approval. If you qualify, you can apply once and borrow for future years with a more streamlined process that only involves a soft credit inquiry.
Student borrowers can defer payments while in school and for six months after graduating. You can also score a 0.25 percentage point reduction on your interest rate for setting up autopay, as well as an additional 0.25 percentage point loyalty discount if you or your cosigner already have a qualifying account with Citizens.
Interest rates
Fixed or variable
Minimum credit score
720
Minimum income
Does not disclose
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $150,000 for undergraduate and graduate degrees; $250,000 for MBA and law; and $180,000 or $350,000 for health care student loans, depending on the degree type
Cosigner release
36 months
Eligibility
Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.
Read full review
4.84.8
Credible rating
Fixed (APR)
8.42% - 13.01%
Loan Amounts
$1,000 up to cost of attendance
Min. Credit Score
680
Check Rates
on Credible’s website
View Details
Overview
Education Loan Finance (ELFI) is a division of Tennessee-based SouthEast Bank owned by Education Loan Finance, Inc., a non-profit whose mandate is to provide access to higher education. ELFI launched in 2015 and offers undergraduate, graduate, and parent private student loans as well as student loan refinancing.
ELFI student loans and refinance loans are available to residents in all U.S. states including Puerto Rico. Borrowers can benefit from no application, origination, or prepayment fees. ELFI also offers flexible repayment terms and competitive rates, however there’s no cosigner release option and the lender doesn’t offer any discounts.
Interest rates
Fixed or variable
Minimum credit score
680
Minimum income
$35,000
Loan terms
5, 7, 10, or 15 years
Loan amounts
$1,000 - Cost of attendance
Cosigner release
A cosigner may not be taken off a loan, but the borrower can apply for a new loan without their cosigner.
Eligibility
All 50 states as well as Washington DC and Puerto Rico.
Read full review
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Meet the expert:
Jennifer Calonia
Jennifer Calonia is a personal finance writer and editor who was born, raised, and currently resides in Los Angeles. She believes smart money management starts with making financial concepts and advice accessible to the everyday person.
