By Kathleen Shipos, Founder of Blue Birch College Consulting
The Free Application for Federal Student Aid (FAFSA) determines eligibility for federal grants, federal loans, and work-study. Need-based grants are one part of what the form does. For families who receive limited or no need-based aid, the FAFSA can also be a requirement for federal loans, some college scholarships, and some state awards.
This article covers what the FAFSA is used for beyond need-based grants, how requirements differ from one college to the next, which Massachusetts programs require it, and what filing involves for the 2027-28 school year.
Is the FAFSA Required If a Family Expects No Need-Based Aid?
The FAFSA is not required to apply to college. It is required for federal student loans and for some college and state scholarships.
The U.S. Department of Education states there is no income cutoff to qualify for federal student aid. Income is one factor in the calculation, along with family size and other information. A family with a high Student Aid Index (SAI), the number the FAFSA determines, may receive no federal grants and still be eligible for federal loans and for scholarships with a FAFSA requirement.
Whether filing is necessary depends on three things: the colleges the student is considering, the family's state of residence, and whether the family intends to use federal loans to pay for college.
What Does the FAFSA Determine Besides Need-Based Grants?
The FAFSA determines eligibility for federal Direct Loans and Parent PLUS loans, and some colleges and states use it for their own awards.
Direct Unsubsidized Loans. These federal student loans are not based on financial need, and completing the FAFSA is required to receive them. A dependent first-year student may borrow up to $5,500 in Direct Loans.
Parent PLUS loans. The student must have the FAFSA on file before a parent can borrow through the PLUS program. For new borrowers, Parent PLUS loans first disbursed on or after July 1, 2026, are limited to $20,000 per year and $65,000 total per dependent student.
College scholarships at some schools. Some colleges require the FAFSA for institutional scholarships, including scholarships awarded for academic achievement.
State awards. Some state programs, including merit-based programs, require the FAFSA.
Outside scholarships. Some private scholarship programs ask for the FAFSA as part of their application.
Loans listed in a financial aid offer can be accepted, reduced, or declined. Filing the FAFSA does not commit a family to borrowing.
Do Colleges Require the FAFSA for Merit Scholarships?
Some colleges require the FAFSA for merit scholarship consideration and some do not. The policy varies by college and can change from year to year.
For example, Assumption University in Worcester does not require the FAFSA for its merit scholarships, although the FAFSA must be filed if a parent plans to borrow a Parent PLUS loan. In contrast, Fordham University requires the FAFSA before it disburses any aid, including merit-based scholarships, and requires a new FAFSA each year to renew those awards.
At some colleges, such as Rutgers University-Newark, merit scholarships include a need-based component, so information from the FAFSA may be part of the award decision itself.
A college's financial aid or scholarship web page lists its current requirements, and the financial aid office can confirm them for a specific student.
Which Massachusetts Programs Require the FAFSA?
In Massachusetts, the John and Abigail Adams Scholarship and most state aid programs require the FAFSA.
The Adams Scholarship is a merit-based tuition waiver at Massachusetts public colleges and universities for students who qualify based on 10th grade MCAS results. Financial need is not a requirement. To receive and keep the award, a student files the FAFSA each year, enrolls full-time, and maintains a cumulative 3.0 GPA in college. The waiver covers tuition only, which ranges from $910 to $1,714 per year depending on the school. It does not cover mandatory fees, housing, or meals.
Other Massachusetts programs also use the FAFSA. These include MASSGrant and MASSGrant Plus, which are need-based, and MassEducate. MassEducate covers tuition and fees at Massachusetts community colleges for residents of any age, including recent high school graduates, regardless of income. Students must file the FAFSA to receive it. For the 2026-27 school year, the state priority deadline for most programs was May 1. The Massachusetts Office of Student Financial Assistance posts the deadline for each year.
Families in other states can find state program requirements and deadlines through their state's higher education agency.
What Does Filing the FAFSA Involve?
Filing is free. The 2027-28 FAFSA opened September 23, 2026, uses 2025 federal tax information, and accepts up to 20 colleges.
The student and each parent who provides information, called a contributor, need a StudentAid.gov account. Contributors consent to the transfer of federal tax information from the IRS, which fills in tax data on the form. The student invites contributors from within the application.
After processing, the family receives a FAFSA Submission Summary showing the SAI. Each college listed on the form receives the information and applies its own policies when building a financial aid offer.
The federal deadline for the 2027-28 FAFSA is June 30, 2028. Colleges and states set their own priority deadlines, which are earlier than the federal date.
What If a Family's Finances Change After Filing?
The FAFSA uses income from the tax year two years before the academic year begins. Financial aid offices can review documented changes to a family's finances since then.
For the 2027-28 school year, the FAFSA uses 2025 income. A job loss, reduced business income, divorce or separation, or high medical expenses after 2025 do not appear in the 2025 tax data. Financial aid administrators have authority to adjust information on the FAFSA for documented special circumstances, a process called professional judgment. The review begins from a FAFSA already on file.
The FAFSA is filed for each year of enrollment, and eligibility is recalculated annually. A family receiving no need-based aid in one year may receive a different result later if income, assets, or household circumstances change.
How Is the FAFSA Different from the CSS Profile?
The FAFSA determines federal and some state aid. The CSS Profile is a separate College Board form some colleges use to award their own aid.
The CSS Profile asks for more detailed financial information than the FAFSA, including home equity at some colleges, and each college applies its own methodology to the results. For 2027-28, the CSS Profile fee is $25 for the first college and $16 for each additional college, with fee waivers available for some families. The College Board publishes a list of participating colleges.
Filing the CSS Profile does not replace the FAFSA. Colleges using both treat them as separate requirements.
When Is the FAFSA Not Needed?
The FAFSA may not be needed if no college the student applies to requires it, no state award depends on it, and the family does not intend to use federal loans.
This combination may apply when a family plans to pay from savings and income, each of the student's colleges awards merit scholarships through the admission application alone, and no state program the student qualifies for requires the FAFSA. Confirming this depends on each college's published policies.
The FAFSA can be filed at any point up to the federal deadline. College and state priority deadlines are earlier in the year.
A Planning Checklist for Families With Limited Need-Based Aid
These steps organize the process for families deciding whether and when to file:
List each college's scholarship requirements. Note whether each college requires the FAFSA, the CSS Profile, both, or neither for scholarship consideration.
Record priority deadlines. Include each college's financial aid deadline and the state priority deadline.
Decide whether to use federal loans. Include the Parent PLUS limits of $20,000 per year and $65,000 total per student in the calculation.
Create StudentAid.gov accounts. The student and each contributor need their own account.
File the FAFSA and list each college under consideration. Review the FAFSA Submission Summary for errors once it arrives.
File again each year the student is enrolled. Awards such as the Adams Scholarship require annual filing.
How the FAFSA Relates to College Costs
For families who receive limited or no need-based aid, merit aid may account for most of the difference between a college's sticker price and net price. The FAFSA is a requirement for some of those awards, along with federal loans and certain state programs.
Reviewing each college's FAFSA and CSS Profile requirements alongside its estimated net cost provides a more complete estimate of each college's cost.
Working With Blue Birch College Consulting
Blue Birch College Consulting helps families find colleges that fit both the student and the family budget, with a focus on families who receive limited or no need-based aid. Net-cost estimates, financial aid guidance, and merit aid research are part of building the list, so each college is evaluated for academic, social, and financial fit before the student applies. To learn how this process could support your student's college search, schedule a 30-minute consultation.
Kathleen Shipos is the founder of Blue Birch College Consulting in Medway, Massachusetts, and an IECA Associate Member. She helps families find colleges that fit both the student and the family budget, with a focus on families who receive limited or no need-based aid.
