What is the FAFSA and why should every family file it?

The FAFSA (Free Application for Federal Student Aid) is the form that unlocks all federal aid – Pell Grants, work-study, and federal student loans – plus most state and school-based aid. File it even if you think you earn too much: it's the gateway to federal loans, many merit scholarships require it, and it costs nothing. The FAFSA now uses the Student Aid Index (SAI) instead of the old Expected Family Contribution, and it pulls income data directly from the IRS, so it's faster than it used to be. Eligibility for need-based aid depends on the SAI versus a school's cost of attendance, and the formula treats your retirement accounts and primary home favorably. File as soon as it opens each year using the prior-prior year's tax return. Start at studentaid.gov, and use wealthserene.com/tools/college-planner to project your costs first.