FAFSA Income Limits: How Much Income Is Too Much? | BestColleges (2024)

There are no FAFSA income limits that disqualify students from applying for federal aid. Learn what contributes to your expected family contribution.

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By

Lauren WardRead Full Bio

Writer

Lauren Ward is a personal finance writer covering student loans, credit, investing, and more. In addition to writing for BestColleges, her work has been featured on a variety of platforms, including The Balance, Money Under 30, and Her Money. She liv...

Edited by

Cameren BoatnerRead Full Bio

Editor & Writer

Cameren Boatner is a senior news editor at BestColleges. She's a Society of Professional Journalists award winner for her coverage of race, minorities, and Title IX. You can find her work in South Florida Gay News, MSN Money, Debt.com, the Student Pr...

Reviewed by

R.J. WeissRead Full Bio

Reviewer & Writer

R.J. Weiss is a certified financial planner who has worked with clients planning investments, insurance, income taxes, and retirement. Weiss is CEO of financial education company The Ways To Wealth, which teaches financial planning fundamentals to hu...

Published on August 12, 2022

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  • There are no income limits to apply for the FAFSA.
  • The FAFSA uses several factors to calculate your expected family contribution (EFC).
  • You could qualify for maximum financial aid if you or your parents make less than $27,000.
  • A student can make up to $7,040 before it affects their FAFSA.
  • Explore multiple ways to pay for college beyond federal student aid.

If you think you or your parents make too much to file the Free Application for Federal Student Aid (FAFSA), you're wrong. There are no income limits on the FAFSA.

Instead, your eligibility for federal student aid depends on how much your college costs and what your family should contribute. Learn how your FAFSA eligibility is calculated and other ways to pay for college if you don't qualify for federal student aid.

What Is the Maximum Income to Qualify for the FAFSA?

The U.S. Department of Education offers need-based federal financial aid packages to eligible students. To qualify, you must fill out the FAFSA.

However, the eligibility process doesn't include a strict cutoff for FAFSA income limits. Instead, the application considers many factors in determining how much aid you'll receive and what your expected family contribution (EFC) is.

What Is EFC?

Here are the primary categories used to calculate your expected family contribution:

  • Untaxed income
  • Assets
  • Benefits, such as Social Security or unemployment

It's possible to qualify for an automatic zero EFC calculation, which would get you the most aid possible. The FAFSA income limit for this situation in the 2022-23 school year is $27,000 in adjusted gross income.

What Is COA?

Your cost of attendance (COA) is the sum of:

  • Tuition
  • Room and board
  • Books, supplies, and other miscellaneous costs

Your EFC is then subtracted from your COA to determine your FAFSA qualifications. You could qualify for different types of aid to cover the outstanding costs, such as grants, subsidized loans, and work-study jobs.

How to Pay for College Without Financial Aid

If you don't qualify for federal financial aid, consider these six alternatives to pay for college that don't rely on FAFSA qualifications or income.

Institutional Scholarships

In addition to federal need-based scholarships, many colleges and universities use endowment money to offer merit-based scholarships to entice students to attend. Research scholarship programs at your accepted schools to see if you're eligible to apply based on your academic or extracurricular achievements.

Some institutions may also offer need-based scholarships using information from your FAFSA.

Private Scholarships

Look beyond your college for scholarships to raise even more money for your education. Even when you receive federal financial aid, private scholarships can help cover your expected family contribution.

Talk to your high school guidance counselor to get advice on identifying eligible opportunities. Also, search online for programs that can help you pay for college beyond your financial aid package.

Some private companies and organizations offer scholarships based on your demographic, such as LGBTQ+ scholarships and scholarships for Black and African American students.

Private Grants

Like a scholarship, a private grant offers you cash to pay for your education without having to pay back the funds. Grants are based on financial need rather than specific achievements. However, there may still be specific qualifications you must meet. For instance, you might discover grants for single mothers or low-income students.

To get started, take a look at state grants first. There may be programs available that are awarded separately from federal grants. Many private organizations, such as nonprofits, also offer grant programs that you can qualify for. Some may be a one-time award, while others may renew each year you're in school.

Private Student Loans

Federal and private student loans have different features, but utilizing both could help with college affordability. A private student loan goes through a private bank, credit union, or other lenders. If you don't qualify for federal aid or simply need some extra cash to cover your costs, a private loan could help.

Just pay attention to the terms of your loan agreement. You may need a student loan cosigner, like a parent or relative, with an established credit history and consistent income. Additionally, check whether your interest rate is fixed or variable. If it's variable, your loan balance can increase as rates rise.

Employer Tuition Reimbursement

Some employers offer tuition reimbursement for employees or their children. Whether you're working full-time or have a parent with this benefit at work, it could be a helpful way to contribute to college costs. Some companies have stricter requirements, like only paying for programs that are related to that person's job. But if you're an adult going back to school, this is a great option for free money.

Advanced Placement Classes

Students who are still in high school could consider taking Advanced Placement (AP) classes to reduce the length of time they spend in college (and the cost). Most high schools offer several different classes, such as English, U.S. History, Calculus, or Psychology.

The coursework is rigorous, but scoring well on the national exam could earn you college credits. Check with the school you plan to attend to find out what AP courses they accept and what exam score you'll need to earn. You could potentially shave off a semester of your degree program.

Community College

Attending community college for the first two years is another way to lower college costs regardless of your financial aid package. The average cost for one year at community college was just $3,900 in 2020-21, according to the National Center for Education Statistics. After two years, you can transfer from community college to a university. Some state colleges and community colleges even offer a transfer track.

Frequently Asked Questions About FAFSA Income Limits

What is the maximum income to qualify for FAFSA?

There are no FAFSA qualification requirements surrounding income. However, there is an income limit if you hope to qualify for an automatic zero expected family contribution, which is an adjusted gross income of $27,000.

What is the income limit for FAFSA 2022?

In 2022, the income limit for an automatic zero expected family contribution is $27,000. But this is based on the previous tax year, which would be 2021. There is no income limit for submitting the FAFSA.

Can you get financial aid if your parents make $100,000?

You could receive financial aid, even if your parents make $100,000. The calculation considers other factors in addition to income, such as the size of your family, other family members in school, and the cost of attendance.

How much can a dependent student earn before affecting FAFSA?

Students with a part-time job may have their income included in the FAFSA calculation, but only if it exceeds a certain amount. The FAFSA student income allowance is $7,040.

DISCLAIMER: The information provided on this website does not, and is not intended to, constitute professional financial advice; instead, all information, content, and materials available on this site are for general informational purposes only. Readers of this website should contact a professional advisor before making decisions about financial issues.

FAFSA Income Limits: How Much Income Is Too Much? | BestColleges (2024)

FAQs

FAFSA Income Limits: How Much Income Is Too Much? | BestColleges? ›

There are no set income cutoffs for financial aid because of the number of factors that are included in the need-based calculation beyond income. Unless parents are in a situation where they don't need money for their child to go to school, everyone should fill out the FAFSA.

What income level is too high for FAFSA? ›

What Are the FAFSA Income Limits for 2024? Both students and their parents often think their household income makes them ineligible for financial aid. However, there's no income limit for the FAFSA, and the U.S. Department of Education does not have an income cap for federal financial aid.

How much can FAFSA give you based on income? ›

The FAFSA formula doesn't expect students or families to use all of their adjusted available income to pay for college. The formula allocates 50 percent of a dependent student's adjusted available income to cover college expenses and anywhere from 22 to 47 percent of parents' available income.

Can I get financial aid if my parents make over 150k? ›

Don't worry, this is a common question for many students. The good news is that the Department of Education doesn't have an official income cutoff to qualify for federal financial aid. So, even if you think your parents' income is too high, it's still worth applying (plus, it's free to apply).

At what income level does it not make sense to fill out FAFSA? ›

For example, Cieniewicz points out that families earning northward of $300,000 per year are unlikely to get any need-based aid for college and could potentially skip the FAFSA if they think the likelihood of getting merit aid is low.

Can I get FAFSA if I make 40k? ›

There is no income cut-off to qualify for federal student aid. Many factors—such as the size of your family and your year in school—are taken into account.

What disqualifies you from FAFSA? ›

Other reasons for financial aid disqualification include: Not maintaining satisfactory progress at your college or degree program. Not filling out the FAFSA each year you are enrolled in school. Defaulting on a student loan.

Why fill out FAFSA if high income? ›

Even some merit-based scholarships offered by colleges and universities require applicants to file the FAFSA. Thus, many college planning experts recommend that students from higher-income households also fill out the FAFSA (or, if your college instructs you, the CSS Financial Aid Profile form).

Does FAFSA check your income? ›

All you need to do is provide the documentation your school asks for—and be sure to do so by the school's deadline, or you won't be able to get federal student aid. In most cases, you won't have to verify income and tax information.

How to lower income for FAFSA? ›

Some methods of reducing the parents' income include:
  1. Taking an unpaid leave of absence.
  2. Incurring a capital loss by selling off bad investments.
  3. Postponing any bonuses until after the base year.
  4. If the family runs its own business, they can reduce the salaries of family members during the base year.

Can I get FAFSA if I make 100k? ›

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.

What is the highest parent income that can be claimed on the FAFSA? ›

There is no set income limit for eligibility to qualify for financial aid through. You'll need to fill out the FAFSA every year to see what you qualify for at your college.

What if my parents are rich but won't pay for college? ›

Apply for scholarships and grants

Unlike student loans, college scholarships and grants don't have to be repaid — which makes them a great way to pay for school. There's no limit to how many scholarships and grants you can get, so it's a good idea to apply for as many as you can.

Does FAFSA want gross or net income? ›

The FAFSA uses AGI and not taxable income as the main income measure for determining your financial aid eligibility. Here's why—AGI is your total income after subtracting certain allowable deductions, so it paints a more complete picture of your family's financial situation.

Does FAFSA consider household income? ›

The information you report on your FAFSA form is used to calculate your EFC. The EFC is calculated according to a formula established by law. Your family's taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) all could be considered in the formula.

What is the income limit for FAFSA 2024? ›

There's no income limit that precludes students from qualifying for student aid, so they should complete the FAFSA, regardless of their family income.

What is most FAFSA money you can get? ›

How Much Money Can You Get from the FAFSA?
  • Average and maximum financial aid. Type of Aid. Average Amount. Maximum Amount (2024-25) Federal Pell Grant. $4,310. $7,395. ...
  • Financial aid recieved. Type of Aid. Average Amount. Percent Receiving. 90th Percentile. Total Federal Student Aid. $9,010 (dependent) ...
  • Shop Smarter For College.
May 1, 2024

Does the FAFSA check your bank accounts? ›

Students selected for verification of their FAFSA form may wonder, “Does FAFSA check your bank accounts?” FAFSA does not directly view the student's or parent's bank accounts.

What is the adjusted gross income for FAFSA? ›

Your or your family's wages, salaries, interest, dividends, etc., minus certain deductions from income as reported on a federal income tax return. Commonly referred to as AGI. Your AGI appears on Internal Revenue Service (IRS) Form 1040, line 11.

How to reduce income for FAFSA? ›

Some methods of reducing the parents' income include:
  1. Taking an unpaid leave of absence.
  2. Incurring a capital loss by selling off bad investments.
  3. Postponing any bonuses until after the base year.
  4. If the family runs its own business, they can reduce the salaries of family members during the base year.

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