As a college planning platform, we talk a lot about FAFSA. And while it’s commonly recommended that EVERY student fills out the FAFSA, only around 50% actually do. That means another 50% of students attending higher education are likely leaving potential aid on the table. We thought it would be interesting to cover some of the facts and stats around FAFSA. These stats around FAFSA give you an eye-opening look at the average annual numbers when it comes to financial aid.
What Is The FAFSA? A Quick Overview
Administered by the Department of Education, the Free Application for Federal Student Aid (FAFSA) is a key resource for making college more affordable. This application gives students access to various federal, state, and institutional financial aid such as grants, loans, and work-study. Submitting the FAFSA every year is the single best thing you can do to help fund your college education.
Unfortunately, a large number of students miss out on free and low-cost financial aid simply because they don’t complete the FAFSA for a number of different reasons. A look at some FAFSA stats, such as application rates and trends, aid distribution, and demographic trends, can give you some insight into who benefits the most from federal financial aid. It also reveals common mistakes students make and opportunities to maximize your funding potential so you’re not leaving money on the table.
FAFSA Stats: Highlights
Highlights of FAFSA stats published by Education Data on May 25, 2024:
Report Highlights.
- 87% of first-time, first-year undergraduate students benefit from some form of financial aid. This number grows by an average of 1.15% every year.
- 56% of undergraduates each receive an average of $4,983 in federal grants every year.
- 39% of undergraduates each receive an average of $7,487 in federal loans every year. This is the average amount every student borrows every year to cover their college tuition.
- 60% of undergraduate financial aid recipients are women.
- Public university students borrow an average of $29,264 in total to attain a bachelor’s degree.
- 20% of students participate in the Federal Work-Study program while in college. The average income each student earns in an academic year through work study is $1,821.
Let’s take a deeper diver into the FAFSA stats to see what the numbers reveal for different types of federal financial aid.
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FAFSA Stats for Different Types of Federal Financial Aid
FAFSA determines eligibility for several key types of financial aid.
Federal Grants
Federal grants are awarded to undergraduate students based on financial need. Grants do not have to be repaid but students must submit supporting documentation to demonstrate need.
- The Education Department budgets $31.1 billion annually for all grants.
- An estimated 6.1 million college students receive Federal Pell Grants every year.
- The average federal grant amount each student receives every year is $4,983.
- Students attending private, for-profit colleges are most likely to receive federal grants.
- About 67% of students enrolled in private, for-profit colleges are grant recipients.
Federal Work-Study Programs
Federal Work-Study is a program that allows qualifying students to earn money through part-time jobs on or off campus while enrolled in school. Students are not permitted to work more than 20 hours a week and their earnings at capped at their Work-Study award.
- An estimated 20% of college students participate in the Work-Study program.
- Work-Study students earn an average of $1,821 in one academic year.
Federal Student Loans
Federal student loans are lower-cost loans offered to college students. The amount each student can borrow every year is capped based on their family’s income for the year. Student borrowers must repay their loans with interest within a certain period.
- An estimated 34.6% of undergrad students take federal student loans to cover their college costs.
- The average federal loan amount is $7,487 a year.
- The average total federal loan amount for an undergrad student at a public college is $23,390.
- The average total federal loan amount for an undergrad student at a private, non-profit college is $26,720.
- The average total federal loan amount for an undergrad student at a private, for-profit college is $34,740.
- The interest rate for federal loans in the 2023 – 2024 academic year was 5.50%.
- An estimated 18% of parents borrow money from the federal government on behalf of their college-going children.
State Financial Aid
In addition to federal financial aid, the FAFSA is also used to calculate state financial award. This is generally awarded by states to subsidize the education of resident students who attend an in-state college. The amount of financial aid awarded can vary considerably from one state to another.
- States award about $1,140 on average per full-time student in financial aid.
- States typically award each recipient an average of $4,116 in scholarships and grants.
- States are most likely to award grants to students enrolled in public universities (38%) compared to students attending private, nonprofit colleges (25%) and students attending for-profit colleges (11%).
- At $3,161, South Carolina spends the most per full-time student while Montana spends $13.26, which is the least per full-time student.
- Every year, states award an estimated $14.2 billion to 33.2% of the national student population.
Financial Aid Demographics
All students are eligible for some form of federal financial aid regardless of race, religion, gender, or income level. However, not all students submit the FAFSA and even among those who do, many do not maximize their benefits.
Here’s a look at what the FAFSA stats reveal on how students from different demographics use financial aid.
- 60% of financial aid recipients are women.
- A higher percentage of full-time students (62.4%) accept financial aid compared to part-time students (51.5%).
- Black college students are most likely to receive financial aid, with an acceptance rate of 81%.
- Asian college students are least likely to accept financial aid, with an acceptance rate of 66%.
Are Students Making the Most of Federal Financial Aid?
A look at the FAFSA stats over multiple years reveals that students are not making the most of federal financial aid. In fact, many students are leaving money on the table by not submitting their FAFSA application. This report published by Education Data in April 2022 highlighted this trend.
- According to the report, 20 million FAFSAs are processed every year.
- A total of around $120 billion in federal student aid is disbursed every year in the form of grants, work-study, and student loans.
- Scholarships and grants cover 25% of educational costs every year.
- 63% of all undergraduates receive at least one grant or scholarship.
- 47% of all grants and scholarships come from the federal government.
- 23% of federal grants are Pell Grants.
The above stats indicate that a large percentage of students do make the most of the FAFSA and federal financial aid. On the other hand, every year, students miss out on an estimated $3 billion in Pell Grants by not filing their FAFSA.
The most common reason students give for not filing the FAFSA is missed deadlines. Far too many students miss the FAFSA deadlines, either due to lack of awareness or procrastination. Missing the FASA deadline can result in students losing access to any type of federal, state, or institutional aid.
Some students are not aware that they have to file the FAFSA every academic year to receive financial aid for that year. Failing to submit the FAFSA in subsequent years results in having to take additional student loans, increasing their overall debt burden.
Important FAFSA Tips & Deadlines
These FAFSA tips and deadlines will help you make the most of low-cost federal, state, and institutional financial aid that’s offered every year.
- All students are eligible for some form of federal student aid. The type and amount of aid you receive will depend on your dependency status and your family’s finances and personal circumstances.
- You should file the FAFSA even if you don’t think you’ll qualify for financial aid because your family income is too high. While you may not be eligible for federal grants with a high income, you may be still qualify for work-study, low-cost student loans, and some types of scholarships.
- The FAFSA window opens on October 1 and closes on June 30. It’s best to submit your application as close as possible to the opening date. This is because aid is allocated on a first-come-first-served basis. The earlier you apply, the higher your chances of getting the maximum aid you qualify for.
- Every state sets its own FAFSA deadline, which is often earlier than June 30. State deadlines can be found at your state higher education agency’s website.
- Colleges and universities often have their own priority deadlines, which are even earlier than state deadlines. The earlier deadline always takes precedence. Missing a state or college deadline can mean losing access to aid programs offered by that state or institution.
- You can list up to 20 colleges on the online FAFSA form. All colleges listed on your application will receive your FAFSA and Student Aid Report. You can always add new colleges or remove previously listed colleges after submitting your application.
- The FAFSA is valid for one academic year only. You must submit the application every year you’re in college to receive aid for the subsequent years. This is because family income and other circumstances may change at any time. Your aid eligibility is recalculated every year based on your current family circumstances.
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