FAFSA Income Limits: How Much Income Is Too Much?

Q: Is FAFSA worth filling out for high-income earners?

The FAFSA is worth filing out, even for high-income college students. Firstly, the new Simplified FAFSA is shorter than ever. So long as everything is running smoothly, the form will likely take less than half an hour to complete. Secondly, even if you don't think you'll qualify for federal financial aid, some colleges and universities require FAFSA completion to qualify for institutional aid. That may include merit-based scholarships.

Q: Will I get more FAFSA aid if I'm independent?

Yes, independent students generally qualify for larger grants through the FAFSA. However, this may not always be the case, such as if they are independent but have a wealthy spouse or are dependent and come from a large family. The Pell Grant program, for example, awards funds more easily to independent students than to dependent students. Dependent students may also receive smaller financial aid awards if their parents have high incomes, even if their parents don't contribute to their educational expenses.

Q: How much can a dependent student earn before affecting FAFSA?

The student income protection allowance for a single, dependent student is set at $11,510 for the 2025-26 academic year. This means dependent students can make over $11,000 in a year without those earnings impacting their FAFSA.

Q: Can you get financial aid if your parents make $100,000?

You could receive financial aid even if your parents make $100,000. The calculation considers other factors in addition to income, such as the size of your family and the cost of attendance.

Updated on July 29, 2025

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Learn why the FAFSA is worth filing out, no matter how high, or low, your annual income is.

The Free Application for Federal Student Aid, better known as the FAFSA, opens the door to all types of federal, state, and institutional financial aid.

Unless you plan on paying for your entire college education out of pocket, everyone should submit the FAFSA. There are no FAFSA income limits, meaning there’s nothing stopping even the richest college students from submitting a FAFSA.

Thanks to the so-called “Simplified FAFSA” unveiled for the 2024-25 academic year, filling out the form is faster and easier than ever.

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What Is the Maximum Income to Qualify for the FAFSA?

There is no maximum income you can have for the FAFSA.

Whether you’re the richest person in the country or have an annual income of $0, you can submit the FAFSA. The amount of money you are eligible to receive will vary depending on your income, but it does not preclude you from submitting a form to see which grants and student loans you may qualify for.

The Pell Grant, the federal government’s largest grant program for low- and middle-income students, is awarded based on your or your family’s income.

Some programs, including state grants and scholarships, don’t consider your income at all.

How Is Federal Financial Aid Calculated?

Federal financial aid is calculated using two pieces of information:

Cost of attendance
A person’s student aid index

The federal government collects this data from a student’s submitted FAFSA and from institutional data it gathers directly from colleges and universities.

Previously, the Department of Education (ED) used a metric known as expected family contribution to determine aid. However, that is no longer the case.

What Is Cost of Attendance (COA)?

Cost of attendance (COA) is an estimate of how much it will cost to attend college. It’s used to help calculate how much need-based aid you can qualify for. The higher the COA, the more aid you may receive.

COA is determined using the following expenses:

Tuition and fees
Textbooks, supplies, and course materials
Housing and meals
Transportation and miscellaneous personal expenses
Loan fees
Allowance for childcare
Costs related to disability
Costs of obtaining a license, certification, or credential

What Is Student Aid Index (SAI)?

Your Student Aid Index (SAI) is a number assigned to pinpoint your financial need. The lower your SAI, the more financial aid you qualify for. The SAI is the new name for the expected family contribution.

The FAFSA Processing System (FPS) calculates SAI primarily using tax information provided by your FAFSA and the IRS. You may need to manually submit tax and income information in some circumstances, like if you have a noncitizen parent or recently divorced parents.

The SAI formula for dependent students takes into account:

Parents’ income
Parents’ assets
Student’s income
Student’s assets
Family size

The SAI formula for independent students uses:

Student’s income
Student’s assets

The One Big Beautiful Bill will change how SAI factors into aid eligibility, effective July 1, 2026. Students with an SAI that equals or exceeds twice the maximum Pell Grant will be ineligible for Pell Grants, regardless of their adjusted gross income.

Every SAI falls in the range of -1,500 to 999,999.

You can use FSA’s Federal Student Aid Estimator to get a rough idea of what your SAI might be. You’ll need to include details about your financials and family, however, in order to get a proper estimate.

What Is Expected Family Contribution (EFC)?

Expected family contribution (EFC) is how FPS (formerly known as the Central Processing System) previously calculated your financial need.

However, starting with the 2024-25 academic year, the agency no longer uses EFC. It has now been replaced with the SAI.

What Types of Income Are Considered in the FAFSA?

The FAFSA considers both income and assets when calculating SAI, including parents’, student’s, or spouse’s assets.

Income is the most straightforward metric counted. It includes both adjusted gross income (AGI) and certain types of untaxed income that are reported on federal income tax returns. Benefits received, including Social Security and unemployment, are also considered.

Assets, however, are more complicated. Real estate, family businesses, and stocks may be considered. Other assets, such as funds in a 401(k) account or pension plan, are not used in SAI calculations.

The One Big Beautiful Bill added some asset exemptions, meaning these assets will no longer impact a student’s SAI:

Family farm on which the family resides
Small business with not more than 100 full-time employees, owned and controlled by the family
Commercial fishing business and related expenses

What Is the Income Limit for the Pell Grant?

The income limit to qualify for a Pell Grant award varies slightly depending on your state of residence, family size, dependency status, marriage status, and whether you have children.

Income Limits for Pell Grants (Continental U.S.)
Dependency status	Family of one	Family of two	Family of three	Family of four
Dependent, parent is a single parent	N/A	$64,090	$80,795	$97,500
Dependent, parent is not a single parent	N/A	N/A	$68,365	$82,500
Independent, single parent	N/A	$78,880	$99,440	$120,000
Independent, parent, but not a single parent	N/A	N/A	$87,010	$105,000
Independent, not a parent	$40,095	$54,230	$68,365	$82,500

The income limit for Pell Grants is calculated using the federal poverty guidelines. Hawaii and Alaska have slightly different guidelines, so income limits will vary from the rest of the country.

Frequently Asked Questions About FAFSA Income Limits

What income is too high for FAFSA?

There is no income that is too high to file a FAFSA. No matter how much you make, you can always submit a FAFSA. Eligibility for need-based financial aid increases as the cost of attendance increases, so even a wealthy student might qualify for financial aid at a higher-cost college. Wealthy students also qualify for federal student loans.

Federal Student Aid (FSA) will use your tax information to calculate your need for financial aid. The more you earn, the less financial aid you’re likely to be offered.