Increasing Financial Aid Applications

Key Issue Overview

Filing the Free Application for Federal Student Aid (FAFSA) is a crucial step in accessing most types of financial aid and making college more affordable. In addition to the FAFSA, some states require students to complete additional steps to receive state aid, such as enrolling in an aid program during middle or early high school; creating an online account; or submitting additional documentation to verify eligibility. Each year, substantial financial aid goes unclaimed by eligible students who do not complete the necessary applications (Woodhouse & DeBaun, 2024). Furthermore, many students and families overestimate the price of college they would face because they are unaware of the financial aid available to them (Gallup 2024; Velez, 2019). As a result, some may decide not to attend college at all or choose an option with a lower sticker price, even though they might have been able to attend a four-year college at a similar or lower net price after aid.

The complexity of the FAFSA process creates barriers for many families, preventing them from completing the application and accessing aid they would otherwise qualify for. Students may encounter challenges due to information gaps about the FAFSA and its deadlines, the complexity of the form itself, or bureaucratic hurdles like being flagged for income verification (Dynarski et al., 2022). As a result, only about 50% of high school seniors nationwide complete the FAFSA each year (National College Attainment Network, 2024). This relatively low completion rate is particularly concerning given findings from a survey of over 25,000 high school class of 2023 seniors, of which 74% reported aspiring to attend college and 66% expected to enroll (YouthTruth, 2023). These results suggest that some FAFSA non-completers are college-interested students who ultimately do not enroll—potentially missing out on financial aid that could have helped reduce cost-related barriers to enrollment. In this section we review numerous studies that tested different strategies to improve FAFSA completion rates, including providing students and their families with hands-on support to complete the FAFSA, providing FAFSA information and support via text messages, and requiring students to complete the FAFSA to graduate high school. 

Elements of the state financial aid application process, which varies by state, can also pose informational or psychological obstacles for prospective recipients. We review several interventions targeting students eligible for aid that examine whether simplifying application procedures, delivering targeted information and behavioral nudges, and promoting available supports can boost the likelihood that low- and middle-income students complete required steps and apply for state financial aid. 

Don't miss the latest news and updates from the Center.