Common FAFSA Myths and Mistakes

Every fall, millions of families sit down to fill out the Free Application for Federal Student Aid (FAFSA) and, every year, the same myths and mistakes trip them up. With the 2026–2027 FAFSA cycle introducing a simplified application, updated Pell Grant rules, and new loan limits under the One Big Beautiful Bill Act (OBBBA), it's a good time to separate fact from fiction. Here are the myths and mistakes that can cost families money this year. 

Myth: "We make too much money, so there's no point in applying." 

This is one of the costliest myths out there. There's no income cutoff for filing the FAFSA. Plenty of scholarships, state aid, and even some school aid requires that the FAFSA is on file no matter what you earn. Federal unsubsidized loans are available regardless of income as well. Skipping the form because you assume you won't qualify guarantees you get nothing. 

Myth: "I just need to beat the federal deadline." 

The federal deadline for FAFSA is not the one that matters most. Many states and colleges hand out aid on a first-come, first-served basis, often tied to their own, much earlier deadlines. File the FAFSA as soon as you can after the form opens each October and review the priority deadline section on the financial aid websites of the institutions you are applying to. 

Myth: "Owning a small business or family farm will hurt our chances." 

This used to be true. However, with recent changes, if your family owns a small business (100 or fewer employees) or a farm you live on, it's no longer counted against you. If this kept you from applying in past years, it's worth trying again. 

Myth: "Once I hit submit, I'm done." 

Not quite. There is the possibility you will be selected for verification. This, in many cases, is a routine quality-control check, though data mismatches, incomplete information, or the school's own verification policy can also trigger a request. Be sure to log in after your FAFSA has been processed to check your FAFSA Submission Summary and watch for communications from your colleges. 

Mistake: Leaving questions blank 

Answer every question, even if the answer is "0." Leaving it blank isn't the same as answering zero; the processing system may assume you forgot to answer, which can lead to application rejection, delays, or an incomplete aid award. 

Mistake: Not double-checking the auto-filled tax info 

The FAFSA pulls in a lot of your tax information automatically, which is a huge time-saver, but it's still worth a quick look before you submit. Things like a wrong tax year, a name that didn't sync, or a status that's changed since you filed are worth a second look. Corrections can be made, but they'll delay your review — so it's worth double-checking. 

Mistake: Forgetting a new spouse's income 

If the parent filling out the FAFSA has remarried, that new spouse's income and assets must be included as well, even though they're not legally required to pay for college. This one catches a lot of families off guard. 

Mistake: Misreporting your assets 

The FAFSA aims to calculate your net worth, and in doing so requires you to provide the following values: bank accounts, investments and real estate, and business or farm net worth. These reportable assets specifically exclude retirement accounts, the home you live in, life insurance policies, 529 plans for children not applying for aid, and certain small family businesses and farms. 

The bottom line 

This year's FAFSA is genuinely shorter and easier than it used to be. Best practice for filling it out: get your FSA ID early, answer every question, take a minute to review what's auto-filled, and file as soon as the form opens.