Don’t Make No. 1 Common FAFSA Error

By the Editorial Team · Sunday, October 25, 2026

Many students struggle with FAFSA errors, such as not filing at all or misreporting household information, which can prevent them from accessing crucial federal aid and scholarships. Accurate FAFSA submission is vital because it not only determines eligibility for need-based aid and loans but also enables financial aid appeals and access to merit-based scholarships amid rising college costs.

Many students and families face challenges when completing the Free Application for Federal Student Aid (FAFSA), a critical step in securing financial support for college. According to Mark Kantrowitz, a financial aid expert and author of *How to Appeal for More College Financial Aid*, a key misstep is failing to file the FAFSA at all. Without submitting the application, students cannot access federal aid or many institutional scholarships.

Another frequent error involves misreporting parental marital status and household composition. Kantrowitz explains that divorced or separated parents living together should be reported as married on the FAFSA. Additionally, if the custodial parent has remarried, the income and assets of the stepparent must be included, regardless of any prenuptial agreements. These details directly affect eligibility for need-based aid.

Applicants also commonly make mistakes by mistakenly listing their primary residence or retirement accounts as reportable investments. While these qualify as investments in a general sense, the FAFSA does not require them to be reported, and including them can significantly reduce aid eligibility. Furthermore, using nicknames or middle names instead of the full legal name found on the Social Security card can cause data matching issues, potentially delaying aid.

Regarding 529 college savings plans, only those owned by the student or parent completing the FAFSA should be reported. Accounts held by grandparents, other relatives, or siblings do not need to be included. For families where parents are divorced or separated, only 529 plans owned by the parent filling out the FAFSA must be reported.

Kantrowitz emphasizes that even households with high incomes should complete the FAFSA. As college costs continue to rise sharply—some institutions now exceed a six-figure annual price tag—many families may qualify for some form of aid or merit scholarships that require FAFSA submission. Beyond grants and scholarships, filing opens access to low-interest federal student and parent loans.

Additionally, the FAFSA serves as the gateway for financial aid appeals or adjustments in response to mid-year changes in family circumstances. These requests cannot be considered without an initial FAFSA filing.

Concerns about financial aid applications affecting admissions chances are common but vary by institution. About 100 colleges maintain need-blind admissions for U.S. applicants, meaning financial aid status does not influence admission decisions. However, only approximately 25 schools apply need-blind policies for international students. Some universities, such as Stanford, have a mixed approach—need-blind for U.S. students and need-sensitive for international students. In schools with need-sensitive admissions, applying for financial aid can potentially decrease admission likelihood.

Filing the FAFSA accurately and timely remains an essential step for students seeking financial support to fund their higher education expenses.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.