The FAFSA is used by both the state and federal government in determining which students will receive financial aid and how much financial aid these students will get. State and federal governments have a certain amount of money allocated each year to help students pay for college through grants, work study and loans. The information on the FAFSA is also used to determine the amount of money given to a student from nonfederal loans, such as loans given out by a private institution. The government wants to make sure this money goes to the students who have the highest financial need. The FAFSA helps the government collect information about a student’s financial status, family size and other monetary information to determine how much of their college tuition and expenses the student should be able to pay themselves, how much financial aid they should receive and what form the financial aid should take. The form also includes information about the school or schools the student is considering, and financial aid may be based on the tuition costs of the individual school’s tuition. After filling out the FAFSA, students will receive a letter from their college of choice letting them know how much financial aid they can expect and in what form it will take.



