Can you believe it’s your child’s senior year of high school already? As they prepare to enter a new chapter of their life, there is a long list of items to complete for their education after high school.
So as your child finalizes their admission applications for the next stage of their education, it’s time to complete the FAFSA form.
But what is FAFSA? Its official name is the Federal Application for Free Student Aid (FAFSA), and it’s the form that families need to fill out to receive federal financial aid. FAFSA is available to any student who wants to continue their education after high school.
As your child works on the FAFSA form, they will have to select the Federal School Code for the institution of higher education that they are interested in attending. This list will include the accredited colleges, community colleges, and trade schools at which your child can receive federal financial aid through FAFSA.
Also, as most students will receive some amount of financial aid, even from high-earning families, it’s always in your best interest to apply.
Free Financial Aid
FAFSA determines your student’s eligibility for different forms of federal student aid, usually as grants, scholarships, work-study jobs, or loans. FAFSA information is also used by the state governments and higher education institutions to determine what financial aid they can provide as well.
Grants such as Pell Grants and scholarships are federal aid which do not have to be repaid.
Work-study programs allow enrolled students to earn money for college costs by working part-time. Work-study jobs are available to full-time and part-time undergraduate, graduate, and professional students who have financial need. These jobs will be related to your student’s major when possible. If your student is interested in a federal work-study program, fill out the FAFSA form as early as possible as these ends are limited.
Federally subsidized student loans and parental loans must be repaid with interest by either the student or the parent/co-signer.
Make sure you understand what type of aid is being offered to see if you will have to repay it with or without accrued interest.
Other organizations use FAFSA
Even if you don’t believe that your family will qualify for much financial aid, it is still to your benefit to complete the form.
States, universities, colleges, and other organizations also use the FAFSA to determine what institutional grants or loans to offer to students interested in attending a particular educational institution and how much student aid to offer your student.
So, you may miss out on additional sources of free financial funds by not filling out the FAFSA form.
FAFSA and 529s
FAFSA can be an important component of your family’s financial plans to pay for your child’s college and career training. How? Because some financial aid is free money that does not need to be repaid. So, the more of the free financial aid your student receives, the less your Ohio 529 funds will be needed to cover qualified higher education expenses.
General guidance encourages families to apply with FAFSA as early as possible. As the 2027-2028 school year FAFSA was launched on Sept. 24, 2026, now is a great time to start completing the form and begin this financial aid process. Financial aid is available on a first-come, first-served basis, with a funding pool is largest at the beginning of the process.
529s counted as an asset, but minimally
Once you have filled out the FAFSA form, the data you shared will be used to calculate your child’s Student Aid Index (SAI). This includes the family’s assets, including 529 plans. For a parent-owned 529 plan, only up to 5.64% of the assets in the account will be included in the form. To give you an example, let’s say that a parent-owned 529 account has $10,000 in savings in it; therefore, only $564 of the529 asset will count in the federal financial aid calculations. Grandparent-owned 529s are not included on the FAFSA. The SAI formula calculates your family’s total finances and then deducts the minimum amount needed for your family's normal living expenses. Some of the remaining assets may be used for college expenses.
You will need to complete the FAFSA form for every year your child plans to attend college or career training from accredited trade, vocational, and technical schools.
As a reminder, you should submit the FAFSA form as early as possible to meet the federal, state, and schools’ deadlines. When you do submit the FAFSA as soon as possible, the largest pool of financial aid should be available.
Since 1989, Ohio 529 CollegeAdvantage has been helping families across the nation save for their children’s education after high school. Ohio 529 covers qualified costs at any accredited four-year college or university, two-year community college, trade or vocational school, certificate, or credential program nationwide that accepts federal financial aid, as well as any apprenticeship approved by the U.S. Labor Department. Learn, plan, and start for as little as $25 today at CollegeAdvantage.
