Even if your parents are high earners (or you’re a grad student with a good salary), it’s worth filling out the Free Application for Federal Student Aid, or FAFSA®. While your earnings are a factor on the FAFSA, there are no set income limits to apply or to qualify for aid, and not all programs are based on need. The FAFSA also provides access to non-need-based programs, including institutional merit aid and unsubsidized federal loans.
Regardless of income, It’s generally recommended to fill out the FAFSA as close to its release date as possible. Typically, the FAFSA opens on October 1 for the following academic year.
Read on to learn more about income requirements to be eligible for financial aid and why it’s probably a good idea to fill out the FAFSA.
Table of Contents
Key Points
• Eligibility for need-based grants includes financial need, U.S. citizenship, and enrollment in an eligible program.
• Work-study programs offer part-time jobs for students with some financial need and require filling out the FAFSA.
• Subsidized loans cover interest while in school; unsubsidized loans start accruing interest immediately.
• Early FAFSA submission maximizes financial aid opportunities.
• Additional funding options include private loans, scholarships, and part-time work.
What Are FAFSA Income Limits?
There is no income maximum when you file the FAFSA as an undergraduate or graduate student to attend college or career school. In other words, any student attending or applying to an eligible school can fill out and submit the online form, even if they or their parents are higher earners.
In addition, there are no simple income cutoffs for financial aid eligibility, in part due to the complexity of financial aid formulas.
In general, to be eligible for financial aid, you’ll need to:
• Have a high school diploma or a recognized equivalency, such as a GED, or have completed a state-approved home-school high school education
• Demonstrate financial need (for most programs)
• Be a U.S. citizen or an eligible noncitizen
• Have a valid Social Security Number
• Be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program
• Maintain satisfactory academic progress in college if you’re already enrolled. Standards for satisfactory academic progress vary by school
đź’ˇ Quick Tip: Make no payments on SoFi private student loans for six months after graduation.
How Are FAFSA Needs Calculated?
Your eligibility for scholarships, grants, work-study, and federal student loans depends on two key factors: your Student Aid Index (SAI) and the school’s cost of attendance (COA).
If you’re a dependent student with divorced parents, the parent who provided more financial support to you during the last 12 months should complete the FAFSA. If both parents provided an equal amount of financial support (or if they don’t support you financially), the parent with the greater income and assets should fill out the FAFSA.
SAI
The Student Aid Index (SAI) is an eligibility index number (ranging from –1500 to 9999990) that a college’s financial aid office uses to determine how much federal aid a student would receive if they attended the school.
SAI is calculated using the information you provide in the FAFSA. The formula assesses you and your parents’ total financial resources (including income and assets), then deducts the minimum amount needed for your family’s normal annual living expenses. The remaining amount may, in part, be allocated for college expenses.
Where you fall on the SAI scale helps your school determine what level of financial support you may need.
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Cost of Attendance
The cost of attendance (COA) of a college or university refers to the estimated cost of a year of attendance at that school, including tuition, lodging, food, local transportation, and personal expenses.
When financial aid staffers at a college or university calculate the amount of financial aid you can qualify for, they consider your SAI, any other financial assistance you are already receiving, and the school’s COA to determine your financial need.
You can get an estimate of how much financial aid you might qualify for by using the government’s Federal Student Aid Estimator .
Grants and Loans That Require Financial Need
Federal grants and loans that require you to demonstrate financial need in order to qualify include:
• Federal Supplemental Educational Opportunity Grants
Different Kinds of Financial Aid
Submitting the FAFSA puts you in the running for need-based, as well as non-need-based, aid. Depending on your financial profile, here’s what you may be able to get by completing the form.
Pell Grants
The Pell Grant is a need-based financial aid program from the federal government that is designed to help undergraduates from low-income families afford college. The Federal Pell Grant award amount changes yearly. The maximum Pell Grant award for the 2025-26 academic year is $7,395.
The actual amount of Pell Grant you can receive depends on your SAI, the COA at your college or university, your status as a full-time or part-time student, and the amount of time that you will attend school during the academic year.
FSEOG
The Federal Supplemental Educational Opportunity Grant (FSEOG), which typically doesn’t have to be repaid (unless you don’t fulfill your end of the bargain by completing school), goes to students who demonstrate exceptional need, as determined through the FAFSA.
The awards range $100 to $4,000 a year. The amount of money you can get depends not only on your level of need but also on when you apply, the amount of other aid you get, and how much your college or university can offer students.
Work-Study Programs
Work-study is a federal program that helps college students with financial need get part-time jobs either on or off campus to earn money for college. Students are typically responsible for securing their own work-study jobs.
Not all schools offer work-study, so it’s a good idea to reach out to the financial aid offices at the schools you’re interested in to see if they offer the program. To apply for work-study, you simply need to select the box on the FAFSA that indicates you want to be considered for work-study.
Direct Subsidized Loans
A Direct Subsidized Loan is a loan provided by the federal government for students who demonstrate financial need. You do not have to pay interest on the loan while you’re in school, during any deferment, or for six months after you graduate (known as the grace period). The government picks up this tab.
Before receiving the funds from a Direct Subsidized Loan, you need to complete entrance counseling, which goes over your obligation to repay the loan, and sign a master promissory note, which indicates that you agree to the loan terms.
For undergraduate students who get (or got) loans after July 1, 2025 and before July 1, 2026, the interest rate for Direct Subsidized Loans is 6.39%.
Direct Unsubsidized Loans
Like a Direct Subsidized Loan, a Direct Unsubsidized Loan comes from the federal government, but graduate and professional students can also receive these loans.
Unlike Direct Subsidized Loans, Direct Unsubsidized Loans are non-need based and the government does not pay the interest while you’re in school, during any deferment, and during the grace period. You will be responsible for paying all interest, which begins accruing as soon as the loan is dispersed.
For undergraduate students who get (or got) loans after July 1, 2025 and before July 1, 2026, the interest rate for Direct Unsubsidized Loans is 6.39%.
For graduate or professional students, the interest rate for Direct Unsubsidized loans is 7.94%.
It’s worth noting that for both types of Direct loans, you do not need to undergo a credit check in order to qualify. These types of loans also have annual and aggregate loan limits.
Direct PLUS Loan
Parents of undergraduate students and graduate or professional students can receive a Direct PLUS Loan from a school that participates in the Direct Loan Program. Some schools call this loan type a parent PLUS loan or grad PLUS loan to differentiate the two.
For Direct PLUS Loans first disbursed on or after July 1, 2025, and before July 1, 2026, the interest rate is 8.94%.
You’ll undergo a credit check as a parent or a graduate/professional student to look for adverse events, but eligibility does not depend on your credit scores.
(Note: As of July 1, 2026, Federal Direct PLUS Loans for graduate students will no longer be available. Federal Direct Loans will remain, however, and are available to graduate and professional students.)
đź’ˇ Quick Tip: Parents and sponsors with strong credit and income may find competitive rates on no-fees-required private parent student loans than federal parent PLUS loans. Federal PLUS loans also come with an origination fee.
Beyond Federal Student Loans
Do you have to file the FAFSA? No, it’s not required, but it is a good idea to do so. Schools, states, and other programs also use the FAFSA to determine merit-based grants and scholarships.
Aside from federal loans, here’s a look at other ways to pay for college.
Savings
Some parents, and grandparents, prepare for the task of paying for college well in advance using a tax-advantaged savings account, such as a 529 account. A 529 plan allows your savings to grow tax-free, and some states even offer a tax deduction on your contributions.The advantage of tapping into savings is obvious: You don’t have to borrow funds and pay interest.
Private Student Loans
Private student loans come from a bank, credit union, or other private lender. Loan limits vary by lender, but you can often get up to the total cost of attendance for school. Each lender sets its own interest rate and you can often choose to go with a fixed or variable rate. Unlike some federal loans, qualification is not need-based. However, you will need to undergo a credit check, and students often need a cosigner.
You generally want to exhaust federal loan options before turning to private student loans, since private loans generally don’t offer the borrower protections — like income-based repayment and forbearance — that come with federal student loans.
Grants
Grants, which are typically need-based, are a type of financial aid that students generally don’t have to repay. The federal grant program includes the Pell Grant, Federal Supplemental Educational Opportunity Grant, and Teacher Education Assistance for College and Higher Education (TEACH) Grant.
A student can seek other grants from their state, their college or career school, or another organization.
Scholarships
Scholarships, like grants, are a type of financial aid that you don’t have to pay back. Scholarships are available through a wide variety of sources, including professional organizations, your job or your parents’ jobs, local organizations, religious groups, your college or career school, and more.
There are a number of scholarship finders available online.
Part-Time Work
Even if you don’t qualify for work-study, you can look for a part-time job. If you have the time and energy to pair a part-time job with your studies, you can consider doing so after classes or on the weekends. Part-time work can help you pay for school or additional expenses, such as rent or groceries.
The Takeaway
There are no income limits for filing the FAFSA, and completing it can open the door to a wide range of financial aid opportunities — from need-based grants and work-study programs to merit aid and federal loans. Even if you or your parents earn a higher income, submitting the FAFSA early ensures you won’t miss out on potential opportunities to lower the cost of college.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
FAQ
Can you get financial aid if your parents make over $100K?
The U.S. Department of Education doesn’t have an official income cutoff to qualify for federal financial aid. The reason is that the formula for determining need-based aid is complex and involves more than just your parents’ income. Assets, the size of your family, your school’s cost of attendance, and other factors all go into deciding how much aid you can receive.
Also keep in mind that not all financial aid is need-based, including Federal Direct Unsubsidized Loans and institutional merit aid. That’s why it’s important to fill out the Free Application for Federal Student Aid (FAFSA®) each year.
How are FAFSA income limits different for divorced parents?
For the FAFSA®, the parent who provided more financial support to you over the past 12 months is responsible for completing the FAFSA, regardless of who you live with. If the parent who provides greater financial support has remarried, your stepparent’s income and asset information must also be reported on the FAFSA.
Are FAFSA income limits different for independent students?
No. The U.S. Department of Education uses the same formula for calculating aid regardless of whether you are a dependent or independent student.
That said, independent students may receive more aid than dependent students simply because they tend to have less income and fewer assets to report. You can qualify as an independent student if you are at least 24 years old, married, a graduate or professional student, a veteran, a member of the armed forces, an orphan or a ward of the court, or taking care of legal dependents.
About the author
Melissa Brock
Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.
Photo credit: iStock/Prostock-Studio
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