Dec. 5—Yrefy, a student loan lender working exclusively with borrowers and co-borrowers who are in delinquency or default on private student loans, is recommending that students who will be enrolled in college during the July 1, 2025 through June 30, 2026 academic year complete the Free Application for Financial Student Aid (FAFSA) immediately.
On Nov. 21, 2024, the U.S. Department of Education announced that they had officially launched the 2025-26 FAFSA for everyone, after two months of Beta testing. Financial aid awards from the federal and state governments, and post-secondary institutions are awarded on a first come first serve basis, so the sooner students complete the FAFSA the more potential funding that will be available to them.
"Approximately 85% of people who fill out the FAFSA get some sort of financial aid whether it is from federal, state, and/or post-secondary institutions," said Jack Wallace, Director of Government & Lender Relations at Yrefy.
It is anticipated that approximately 3.9 million high school seniors will graduate this spring, compared to 3.1 million in 2024, many of whom will be filling out the FAFSA form for the first time if they intend to go on to college.
What is FAFSA and What Do I need to Know?
—Anyone filling out the FAFSA form the first time needs to set up a StudentAid.gov account with the U.S. Department of Education. Both the student and the family contributor (parent or guardian) need to set up their own account.
—Sign on to www.student.aid.gov to set up a Federal Student Aid ID (aka FSA) with an email address and password. You will need your Social Security number, your full name as it appears on the Social Security card, as well as your date of birth, phone number, and residential address.
—After a few days you will get a confirmation from the U.S. Department of Education that your account is approved. Now it is time to go to www.studentaid.gov and begin filling out the FAFSA application. Make sure you have picked out your list of schools to include on the FAFSA that you are interested in attending. You can include up to 20 schools.
—Personal financial information needed to complete the FAFSA is based upon federal tax returns for 2023.
—By filling out the FAFSA you will be eligible to receive free grants and scholarships which are not required to be repaid, and federal and private student loans which are required to be repaid.
Information provided — Information provided