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PLUS Â· Consolidation Loans. Private student loans. The Free Application for Federal Student Aid (known as the FAFSA) is a form that can be prepared annually by current and prospective college students (undergraduate and graduate) in the United States to determine their eligibility for student financial aid.
The FAFSA helps determine whether students are eligible for federal loans, grants or work-study programs. Many colleges also require it to be on file for their own need-based or merit-based aid packages. According to the U.S. Department of Education, over $150 billion is given to college students annually via the FAFSA.