How Much Does FAFSA Give? What to Expect in 2025

FAFSA can provide thousands of dollars in financial aid each year, including federal student loans, Pell Grants, and work-study funds. For the 2025-2026 academic year, here’s how much you could receive:

• Federal student loans (undergraduate): Up to $12,500 per year
• Pell Grants (undergraduate): Up to $7,395 per year
• Work-study: Varies by school and funding availability

Your actual aid package depends on your financial need, year in school, school costs, whether you are a dependent or independent, and other eligibility requirements. Below, we’ll break down how FAFSA aid is calculated and what you can expect to receive.

Table of Contents

1. How much does FAFSA give in financial aid per year?
2. How much can I get in total from FAFSA?
3. How is financial aid calculated? 
4. How to get the most from FAFSA

How much does FAFSA give in financial aid per year?

Each year, students must submit a new Free Application for Federal Student Aid (FAFSA) to qualify for aid. FAFSA provides two major types of aid for undergraduates:

1. Federal student loans: Borrowed money you must repay with interest.
2. Pell Grants: Need-based awards you do not need to repay.

Loan amounts increase as students progress in school, but Pell Grant eligibility remains based on financial need. Below are the annual federal student loan and Pell Grant limits for the 2025 – 2026 academic year:

Aid type	Annual limit
Federal loans for first-year undergrad students	$9,500 ($5,500 for most dependent students)
Federal loans for second-year undergrads	$10,500 ($6,500 for most dependent students)
Federal loans for third-year and later undergrads	$12,500 ($7,500 for most dependent students)
Federal loans for graduate or professional students	$20,500
Pell Grants for undergrads	$7,395

Within these limits are restrictions on how much of your total amount can be Subsidized versus Unsubsidized student loans. Check out our full guide on maximum federal student loan limits to learn more.

While the maximum aid amounts are set each year, most students receive less than the cap. The actual amount awarded varies based on income, school costs, and other factors.

The latest average data available is from the 2022 – 2023 academic year, which gives a more realistic picture of what students received.

Average and maximum federal aid (2022 – 2023)

Aid type	Average yearly amount	Max. yearly amount
Undergrad federal loans (Subsidized and Unsubsidized)	$6,575	$9,500 – $12,500
Undergrad Pell Grants	$4,875	$6,895

Since FAFSA awards depend on financial need and other factors, not all students qualify for the same amount. To see trends over time, here’s a 10-year breakdown of how much students have received on average and what percentage of undergraduates received aid:

Average undergrad federal student loan awards over time 

Academic year	Avg. amount awarded*	% of undergrad students awarded
2022 – 2023	$6,575	28.6%
2021 – 2022	$6,590	29.2%
2020 – 2021	$6,597	30.1%
2019 – 2020	$6,632	31.8%
2018 – 2019	$6,629	32.9%
2017 – 2018	$6,688	34.2%
2016 – 2017	$6,713	35.8%
2016 – 2015	$6,774	36.5%
2015 – 2014	$6,827	38.3%
2014 – 2013	$6,890	39.6%
Source: IPEDS, Integrated Postsecondary Education Data System *Average award amounts are not adjusted for inflation

Undergrad Pell Grant awards over time

Academic year	Avg. amount awarded*	% of undergrad students awarded
2022 – 2023	$4,875	31.6%
2021 – 2022	$4,600	32.0%
2020 – 2021	$4,569	32.2%
2019 – 2020	$4,495	33.6%
2018 – 2019	$4,416	34.0%
2017 – 2018	$4,271	34.8%
2016 – 2017	$4,046	34.9%
2016 – 2015	$4,026	36.2%
2015 – 2014	$3,973	38.5%
2014 – 2013	$3,946	39.3%
Source: IPEDS, Integrated Postsecondary Education Data System *Average award amounts are not adjusted for inflation

On average, in the academic year 2022 – 2023, undergraduate students who borrowed federal loans received about $6,575 per year, while Pell Grant recipients received around $4,875. The percentage of undergraduates qualifying for aid has declined over the past decade. 

While FAFSA helps cover college costs, many students may still need additional funding through federal work-study, scholarships, or private loans.

How much can I get in total from FAFSA?

FAFSA awards financial aid every year, but there are limits to how much you can receive over your college career. These aggregate limits cap the total federal student loans and Pell Grants a student can get.

The lifetime aggregate limit for federal student loans varies based on dependency status and degree level: 

• Dependent undergraduate students can borrow up to $31,000 total.
• Independent undergraduate students can borrow up to $57,500. 
• Graduate and professional students can borrow up to $138,500, including federal student loans from their undergraduate programs. 

Pell Grants have a separate “Lifetime Eligibility Used” (LEU) limit equal to about six years of full-time study, or about 600% of a full grant award. If you reach this limit, you can no longer qualify for Pell Grant funding, even if you remain financially eligible.

Other financial aid programs through FAFSA

In addition to federal student loans and Pell Grants, the FAFSA can also qualify students for work-study programs and state grants or scholarships. These funds are not guaranteed and may have limited availability depending on your school or state.

• Federal work-study: Provides part-time job opportunities for students with financial need. Earnings are limited to the amount awarded in the student’s financial aid package.
• State grants or scholarships: Many states offer need-based and merit-based grants and scholarships for residents attending in-state schools. Some state grants require FAFSA submission, and funding is often limited.

Because you must renew the FAFSA each year, applying as early as possible increases your chances of qualifying for work-study funds, state funding, and other limited financial aid. Missing deadlines can mean missing out on free grant money or borrowing opportunities.

How is the financial aid you get from FAFSA calculated? 

Two factors from the FAFSA determine your financial aid package: the cost of attendance (COA) at your chosen institution and your Student Aid Index (SAI). 

The COA includes tuition, fees, housing, food, books, and other educational expenses. Your SAI is an index number ranging from –1500 to 999999, estimating your family’s financial need. The lower your estimated SAI, the higher your financial need.

Schools use these figures to calculate financial need using the following formula:

COA – SAI​ = Financial need

You cannot receive more need-based aid than your calculated financial need. So even if you qualify for multiple grants, scholarships, or work-study, your total need-based aid can’t exceed the difference between COA and SAI. 

However, students can still use federal loans, private loans, or additional scholarships to help cover any remaining costs.

To understand what financial aid you might be eligible for, you can use the Federal Student Aid Estimator before completing the FAFSA. Below is a hypothetical example of how two students with different financial backgrounds might receive aid:

Scenario 1: Higher SAI, less financial aid

Item	Scenario 1
Dependency	Dependent on parents
State	Indiana
Parents’ marital status	Married
Family size	4
Student’s income	None
Parents’ adjusted gross income	$100,000
Parents’ assets	$0
Annual child support received	$0
SAI	8713
Estimated Federal Pell Grant	$0
Maximum Direct Loans	$5,500
Average work-study funds	$1,981
Estimated federal student aid	$7,481

In Scenario 1, the student has an SAI is 8713, meaning their financial need at a university with a COA of $25,000 is $16,287, as shown below: 

$25,000 – 8713​ = $16,287

With $7,481 in estimated federal aid, they still need to cover $8,806 in educational costs, as shown below: 

$16,287 – $7,481​ = $8,806

The remaining educational costs would need to be covered by sources like family contributions, scholarships, or private loans. 

Scenario 2: Lower SAI, more financial aid

Item	Scenario 2
Dependency	Dependent on parents
State	Indiana
Parents’ marital status	Married
Family size	4
Student’s income	None
Parents’ adjusted gross income	$50,000
Parents’ assets	$0
Annual child support received	$0
SAI	–1061
Estimated Federal Pell Grant	$7,395
Maximum Direct Loans	$5,500
Average Work-Study Funds	$1,981
Estimated federal student aid	$14,876

In Scenario 2, the student’s SAI is –1061, so their financial need at the same university is:

$25,000 – (–1061)​ = $26,061

With $14,876 in estimated federal aid, they still need to cover $11,185 in educational costs: 

$26,061 – $14,876 = $11,185

Federal aid can help reduce out-of-pocket education costs, but it rarely covers the full cost of attendance (COA)—especially at private universities or out-of-state schools. Applying early and maximizing grant eligibility can reduce how much you need to borrow.

How to get the most from FAFSA

Filing the FAFSA is the first step in securing financial aid, but how and when you file can make a big difference. Here are some ways to maximize your aid and avoid leaving money on the table:

1. File early. Some aid, like work-study and state grants or scholarships, is first-come, first-served. The FAFSA generally opens on October 1 for the next academic year. Filing early increases your chances of getting more aid.
2. Don’t assume you won’t qualify. Many families skip the FAFSA thinking they make too much. But some merit-based aid and lower-interest federal loans require it. Even if you don’t get grants, filing can open other funding options.
3. Avoid costly mistakes. Errors—like incorrect tax info or mismatched Social Security numbers—can delay or reduce aid. Review your FAFSA carefully before submitting it.
4. List multiple schools. You can send your FAFSA to up to 20 colleges. Listing more schools gives you more opportunities for financial aid.
5. Request a financial aid review. If your family’s financial situation changes due to job loss or medical expenses, you can request a professional judgment review from your college’s financial aid office.

If you don’t get as much financial aid as you need to cover your costs, you have options. Start with scholarships and grants, and see if your school offers a tuition payment plan. If you still need funds, you can also consider private student loans, but compare rates and repayment terms.

We recommend Credible for this. It’s our top pick for the best marketplace for student loan comparison shopping. You can check rates from multiple lenders side by side without affecting your credit score, making it easier to find the best deal for your situation.

When parents have older children who are a few years away from attending college, I encourage them to assess their financial situation and ability to cover college costs as soon as possible.

It’s also important to understand what career their children are interested in pursuing. This information can help them evaluate what colleges are appropriate and realistic for the family budget. For example, if a child is undecided or is not looking to major in a specialized area (like general business for example), a two-year college with credits that can transfer to a traditional four-year college or a public, in-state college may be a better fit over a private or out-of-state college.

Finally, I encourage clients who are behind on retirement savings goals to prioritize retirement over their children’s college education; you can’t take out loans for retirement.