The FAFSA allows students to access federal and state grants in addition to student loans. Grants are important to mention because they are free money. It also helps colleges, universities, and scholarship programs to determine the distribution of need-based institutional grants and scholarships.
FAFSA stands for “Free Application for Federal Student Aid.” Colleges and universities, as well as the federal government, use this application to make decisions about how to distribute financial aid to students. Most of the FAFSA questions ask about your tax history and financial information (and that of your parents if you are under 24 years old).