Common FAFSA Mistakes
15 errors that can cost you thousands in financial aid—and how to avoid them
Each year, students leave billions of dollars in financial aid on the table due to FAFSA errors, missed deadlines, and simple oversights. Some mistakes cause minor delays; others can disqualify you from entire programs. Here are the most common errors and how to avoid them.
On This Page
Application Errors
Financial Errors
Parent & Dependency Errors
Submission Errors
Not Filing the FAFSA at All
This is the biggest mistake of all. Millions of students don't file the FAFSA because they assume their family earns too much to qualify for aid, or they think the process is too complicated.
The cost: According to NerdWallet, students left an estimated $3.75 billion in Pell Grants unclaimed in a single year because they didn't complete the FAFSA.
How to avoid it:
File the FAFSA regardless of your income. Even if you don't qualify for need-based grants, you may still be eligible for unsubsidized federal loans, work-study, or merit scholarships that require a FAFSA on file.
Missing State and Institutional Deadlines
Many students know the federal FAFSA deadline (June 30) but don't realize their state or school may have much earlier deadlines—sometimes as early as January or February.
The cost: Missing your state's deadline could disqualify you from thousands of dollars in state grants. California students who miss the March 2 Cal Grant deadline, for example, can lose access to grants worth up to $14,000+ per year.
How to avoid it:
Check your state's FAFSA deadline and your school's priority filing date. Apply as close to October 1 as possible to maximize your aid.
Selecting the Wrong Academic Year
The FAFSA website has multiple years available. Selecting the wrong year means your application won't apply to your intended enrollment period.
The cost: Your application may be processed for the wrong year entirely, requiring you to start over and potentially missing deadlines.
How to avoid it:
The academic year starts in summer and runs through the following spring. If you're starting college in Fall 2025, select the 2025-26 FAFSA (which opens October 1, 2024).
Entering the Wrong Social Security Number
Typos in your Social Security number are one of the most common errors that cause FAFSA rejections. Even transposing two digits will prevent your application from being processed.
The cost: Your FAFSA will be rejected outright, delaying your application by days or weeks while you correct it.
How to avoid it:
Double-check your Social Security number against your Social Security card before submitting. Have someone else verify the numbers match exactly.
Name Doesn't Match Social Security Records
Your name on the FAFSA must match exactly what's on file with the Social Security Administration. This includes spelling, hyphens, suffixes (Jr., III), and middle names.
The cost: Name mismatches trigger rejection. Common issues include married names that haven't been updated with SSA, nicknames instead of legal names, or missing suffixes.
How to avoid it:
Enter your name exactly as it appears on your Social Security card. If you've legally changed your name, update it with the SSA before filing your FAFSA.
Using the Wrong Tax Year
The FAFSA uses "prior-prior year" (PPY) tax information. For the 2025-26 FAFSA, you'll report 2023 tax information—not 2024.
The cost: Using the wrong year's tax data will result in an incorrect Student Aid Index (SAI), which could either reduce your aid or trigger a verification process.
How to avoid it:
Use the IRS Data Retrieval Tool (DRT) to import your tax information directly. This ensures you're using the correct year's data and reduces errors.
Reporting Retirement Account Balances as Assets
401(k)s, IRAs, pension funds, and other qualified retirement accounts should NOT be reported on the FAFSA. Many families mistakenly include these, inflating their reported assets.
The cost: Reporting $200,000 in retirement savings that shouldn't be counted could reduce your aid eligibility by thousands of dollars.
How to avoid it:
Do not report retirement accounts, pension funds, or annuities. Also excluded: your primary home's value, the cash value of life insurance, and ABLE accounts.
Including Home Equity
The value of your primary residence is not reported on the FAFSA. However, investment properties, vacation homes, and rental properties ARE reportable assets.
The cost: Reporting home equity on your primary residence could add tens of thousands of dollars to your reported assets unnecessarily.
How to avoid it:
Only report real estate investments—not your primary home. Note: Some private colleges use the CSS Profile, which does consider home equity.
Entering Cents or Using Dollar Signs
FAFSA expects whole dollar amounts without symbols. Entering "$50,000" or "50000.00" can cause errors or misinterpretation.
The cost: Entering "50,000.00" could be interpreted as $50,000,000 if the system reads the decimal incorrectly, triggering verification or reducing your aid.
How to avoid it:
Enter whole dollar amounts only. No cents, no dollar signs, no commas. Round to the nearest dollar: $50,125.75 becomes 50126.
Leaving Fields Blank When Zero Is the Answer
A blank field is not the same as zero. If you have no untaxed income, for example, you need to enter "0"—not leave it blank.
The cost: Blank fields may be flagged for verification, or the system may reject your application as incomplete.
How to avoid it:
Enter "0" for any field where the answer is zero or none. Don't skip required fields, and don't assume the system will interpret a blank as zero.
Reporting the Wrong Parent's Information
For students with divorced or separated parents, the FAFSA requires information from the parent you lived with more during the past 12 months—not necessarily the parent who claims you on their taxes.
The cost: Reporting the wrong parent's information could either reduce your aid (if the wrong parent has higher income) or trigger verification.
How to avoid it:
Report the parent you lived with most. If equal time, report the parent who provided more financial support. If that parent is remarried, include stepparent information too.
Misunderstanding Dependency Status
Many students think they're independent because they support themselves, live on their own, or aren't claimed on their parents' taxes. FAFSA dependency is based on specific federal criteria, not tax status.
The cost: Incorrectly claiming independent status will likely be caught during verification, delaying your aid and requiring corrections.
How to avoid it:
Answer the dependency questions honestly. You're only independent if you meet specific criteria: age 24+, married, graduate student, veteran, have dependents, orphan/ward of court, homeless, or emancipated minor.
Sharing FSA IDs Between Student and Parent
Each person who signs the FAFSA needs their own FSA ID. Using a parent's FSA ID for both signatures, or creating an FSA ID on someone else's behalf, violates federal law.
The cost: This is considered fraud and can result in application rejection, loss of aid eligibility, and potential legal consequences.
How to avoid it:
Create separate FSA IDs for the student and parent, each using their own email address and information. Never share login credentials.
Forgetting to Sign the FAFSA
The FAFSA isn't submitted until it's signed. For dependent students, both the student AND a parent must sign. Many families complete the form but forget this final step.
The cost: Your FAFSA won't be processed at all until all required signatures are complete. This can cause you to miss deadlines.
How to avoid it:
Coordinate with your parent to ensure both signatures are completed. You can sign at different times—the FAFSA saves your progress. Check your confirmation page to verify submission.
Not Listing Enough Schools
You can list up to 20 schools on your FAFSA, and there's no penalty for listing more. Some students only list one or two schools, limiting their options.
The cost: If you later decide to apply to additional schools, you'll need to add them and wait for your information to be transmitted—potentially missing their deadlines.
How to avoid it:
List every school you're considering, even if you're not certain you'll apply. Schools can't see what other schools are on your list. You can always remove schools later.
What If You Made a Mistake?
If you discover an error after submitting your FAFSA, don't panic. You can make corrections:
- Log in to studentaid.gov with your FSA ID
- Select "Make FAFSA Corrections"
- Update the incorrect information
- Re-sign and submit the corrected FAFSA
Corrections typically process within 3-5 days. Schools will automatically receive your updated information.
About Verification
About 30% of FAFSAs are selected for verification—a process where the school asks you to prove the information you submitted is accurate. Being selected doesn't mean you did anything wrong; it's often random.
However, certain patterns increase verification likelihood: leaving fields blank, having unusual income fluctuations, not using the IRS Data Retrieval Tool, or having inconsistencies in your application. Complete your FAFSA carefully the first time to minimize the chance of delays.
Ready to Apply?
Now that you know what to avoid, you're ready to complete your FAFSA with confidence.