Will student loans take my tax refund?
If you are in default on federal loans, your 2025 tax refund could be seized.
The Free Application for Federal Student Aid, known as the FAFSA, is your key to unlocking hundreds or thousands of dollars in aid to pay for college. If you’re a college-bound senior or a current college student, this guide is your one-stop-shop for all things FAFSA, including what to know, how to fill it out and how to troubleshoot common errors.
The FAFSA is the form that students need to fill out to apply for federal or state-based financial aid. The form uses your family's financial portfolio, including income, household size and total assets to determine your expected family contribution (EFC) — which in turn helps colleges assess how much financial need you have. The application is free and is not credit-based.
Only U.S. citizens and eligible noncitizens may receive federal aid through the FAFSA, but DACA students can still fill out the form to potentially receive state or institution-specific aid. While most of the financial aid available from the government is need-based, unsubsidized federal student loans are offered to all borrowers, so students from all financial backgrounds should seek federal aid through the FAFSA. To remain eligible, students need to fill out the application every year.
By filling out the FAFSA, students gain access to potentially thousands of dollars through grants, student loans and more.
Filling out the FAFSA will look different depending on your family situation. It’s important to understand what information is required, based on your particular circumstance, to ensure that you get things right from the get-go.
FAFSA applications typically open on Oct. 1 for the upcoming academic year and close on June 30 of the academic year for that award. However, for the 2025-26 academic year, the application opened Nov. 21, 2024 and will close on June 30, 2026. However, each state and school has its own deadline that you must adhere to. Although you’ll have plenty of time to fill it out, it’s always best to do it as soon as possible, since some aid is awarded on a first-come, first-served basis.
If you are in default on federal loans, your 2025 tax refund could be seized.
Paying for college is a challenge for many students, but student loans can help.
Combine a few methods to get the most value out of your student loan payments.
You may be able to cover a large portion of your college costs through the FAFSA.