Why less than half of parents with college-bound students have completed the FAFSA
Forty six percent of parents with college-bound students report that they have completed the Free Application for Federal Student Aid, according to a survey commissioned by Discover Student Loans.
The survey also showed that nearly a quarter (22 percent) of students currently in college or recently graduated said they don't know what the FAFSA is.
And why do parents and students chose not to complete the FAFSA?
The beliefs that they would not qualify or didn't need federal aid were the primary reasons both parents and students chose not to complete the FAFSA.
Views on the ability to qualify and whether or not survey respondents need financial aid varied geographically. In the South, 62 percent of parents of current or recently graduated students did not apply for the FAFSA because they didn't believe they would qualify versus 38 percent in the West. Sixty-seven percent of current or recently graduated students from the Northeast said they didn't fill out the FAFSA because they didn't need to apply for federal aid versus 25 percent in the West.
"Filling out the FAFSA is a critical step in the college financing process since schools use it to determine eligibility for federal, state and institutional aid, including grants and scholarships," said Nicole Straub, vice president for Discover Student Loans based in Riverwoods. "The FAFSA becomes available Oct. 1 and families should plan to fill it out every year a student is in school, even if they feel they won't qualify or don't need the aid, because most people will be eligible for some aid."
According to the National Center for Education Statistics, about 72 percent of undergraduate students received some form of financial aid, which includes grants, federal student loans, and work-study.
Who is actually filling out the FAFSA?
The survey responses show that parents and students aren't taking the opportunity to fill out the FAFSA together.
"It's important for parents and students to communicate early and often about paying for college, and the FAFSA should be a part of those conversations," said Straub. "If families work together to fill out the FAFSA, review their award letters and create a plan to pay for college, it can minimize any surprises and help everyone understand their future financial responsibilities."
Discover Student Loans offers tools and resources to help parents and students understand the college financing process. Discover Student Loans provides private student loans and is not affiliated with the FAFSA or federal financial aid.