You can now file the FAFSA for the 2022-23 school year – here are 5 things to know before you apply

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• The FAFSA for the 2022-23 school year is now open, and the government is offering billions of dollars in aid.
• The earlier you apply for the FAFSA, the better your chances of receiving gift aid.
• The FAFSA should take about 30 minutes to an hour to complete if you have financial documents ready.
• Read more of Insider’s student loan coverage here.

The Free Application for Federal Student Aid (FAFSA) is now open for the 2022-23 school year. The FAFSA determines whether you qualify for different types of aid, including grants, scholarships, work-study, and loans.

Even if you don’t think you’re eligible for financial aid, you won’t know for certain unless you apply. Millions of dollars are left on the table each year by students who don’t complete the FAFSA, so it’s worth taking time to fill out the form. Here are five things you should know before you complete the FAFSA.

1. The FAFSA isn’t just for student loans

You might think of the FAFSA only as an application that determines your loan eligibility. However, you may also qualify for grants, scholarships, and work-study when you fill out the FAFSA.

• Grants: The federal government offers grants based on exceptional financial need or to members of designated groups. Pell Grants, which are presented to students with significant financial need, have a maximum award of $6,495 for the 2021-22 award year (October 1, 2020, to June 30, 2022). The maximum award for the 2022-23 school year (October 1, 2021, to June 30, 2023) has yet to be announced. Learn more about types of federal grants.
• Scholarships: Colleges or private organizations may offer scholarships based on factors such as academic merit, athletic achievement, or volunteer experience. You might even land a full ride so the full cost of your school is covered. Even though scholarships aren’t usually based on financial need, schools may still use the FAFSA when crafting your aid package.
• Work-study: Your total aid package depends on when you apply, your level of financial need, and the amount of money your school has available. Work-study is a type of financial aid that provides part-time positions for students with financial need to earn money for academic expenses.

You do not have to accept all of the aid you’re offered through the FAFSA. Especially if your aid package includes student loans, take some time to assess your financial situation before agreeing to receive assistance.

2. The earlier you apply for the FAFSA, the better

Some aid, like grants and scholarships, is first come, first served and has finite pools of money available. The longer it takes you to apply, the more likely you are to miss out on forms of aid you don’t have to repay.

While there aren’t limited funds available for loans, they are the least desirable form of aid because you’ll need to pay back the loan principal with interest.

You can apply for aid for the 2021-22 school year until June 30, 2022, and the FAFSA deadline for the 2022-23 school year is June 30, 2023. Aid can be applied retroactively.

Learn more about the benefits of applying for the FAFSA early.

3. FAFSA aid isn’t solely based on financial need

There are no defined FAFSA income limits or cutoffs that determine whether you qualify for financial assistance. Some forms of aid don’t depend on financial need.

Scholarships are often given out by schools based on factors such as academic merit, athletic achievement, or volunteer experience, not financial need. You’ll usually still have to fill out the FAFSA to determine your eligibility for this aid.

Direct Unsubsidized Loans aren’t determined by financial need, either. The maximum amount you can borrow each academic year in Direct Unsubsidized Loans depends on your year in school and your dependency status, and is between $5,500 and $12,500 for undergraduates. Graduate and professional students can take out $20,500 per year.

Read more about FAFSA eligibility requirements.

4. The FAFSA will only take about 30 minutes to complete

While you may imagine the FAFSA will take hours and hours to fill out, the process is actually fairly simple. You’ll need your Social Security number, and you should have the past couple of years’ taxes ready, though you can be import the details directly from the IRS in the application. You will also need bank and investment statements.

Read a 10-step guide to filing the FAFSA, complete with screenshots of the app. Once you have all your documents, the process should only take about 30 minutes.

5. You can add up to 10 schools to the FAFSA

When you are filling out your FAFSA, you’ll decide which colleges to send your application to, and those schools will use the information to determine your financial aid package. You can do this for colleges you’re interested in, have applied to, or have been accepted by, though you won’t receive your financial aid package until after you’ve been accepted to a school.

You can send your FAFSA to up to 10 schools. You can add more than 10 schools after you’ve submitted the form, though, or remove schools from your list.

Read about how to add schools to the FAFSA.

Now that the FAFSA is open for next school year, you’ll probably want to start on the application as soon as possible. If you want more FAFSA or student loans coverage, we have answers to more key questions in our Personal Finance Insider student loans hub.

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