For families with college students, financial aid season has arrived. The FAFSA is now available, and unlike last year’s rocky rollout of a revamped version, this year’s form appears to be relatively glitch-free. If you’re debating whether to complete the FAFSA, here are a few reasons why it’s worth the effort:

1. You might qualify for need-based aid.
Many families assume they won’t qualify, but they might. This is especially true considering that a surprising number of schools have a cost of attendance nearing $100,000 per year.

2. Plan for changes in your financial situation.
If your financial situation changes in future years, most schools (~90%) won’t allow you to apply for need-based aid if you didn’t complete the FAFSA before your child’s first year of college.

3. Access merit-based aid.
Some schools (~25%) require students to complete financial aid forms, including the FAFSA, to be considered for merit-based scholarships. It’s worth asking each school your student is applying to whether this applies to them.

4. Secure federal student loans.
Even if you don’t qualify for need-based aid, filling out the FAFSA is necessary to access federal unsubsidized student loans. These loans don’t require credit checks, often offer favorable interest rates, and provide flexible repayment options. Additionally, your child will start building their credit history while in college, even though payments aren’t required until after graduation.

The FAFSA process has been streamlined and is now much easier to complete than in previous years. For many families, income data will transfer automatically from the IRS. To make the process smoother, keep the following tips in mind:

  • Do NOT include retirement accounts under parent or student investments.
  • Do NOT include primary home equity under parent investments.
  • Do NOT include parent-owned 529 accounts for other siblings under parent investments, nor any grandparent-owned 529s.
  • Do NOT miss the chance to select “Yes” for a work-study job on campus.
  • Do NOT assume your Student Aid Index (SAI), previously known as the Expected Family Contribution (EFC), is the actual amount you’ll pay at each college.
  • Do NOT overvalue your business or secondary real estate.
  • Do NOT miss deadlines. They vary by school and some aid is first-come, first-served.

For the reasons outlined above, completing the FAFSA is a smart choice for most families with college-bound students. It’s now a much simpler process, and with these tips, it shouldn’t take long. With college costs rising, it’s worth exploring every opportunity to reduce expenses.