Why FAFSA Completion Matters
The Challenge
Financial aid makes education after high school more affordable — but students must first apply by filing the FAFSA. Each year, millions of students who are eligible for financial aid fail to complete the FAFSA, leaving significant resources unused. NCAN estimates that every year high school graduates who do not complete the FAFSA leave billions of dollars in Pell Grants unclaimed that could help them pay for education after high school.
Students and families face many barriers when applying for aid. Some students may not know that financial aid opportunities exist, while others encounter difficulty navigating the application process.
Even more concerning, students who could benefit the most from financial aid are often the least likely to apply. A 2018 paper commissioned by NCAN found that in most states FAFSA completion rates were lower in higher-poverty school districts. On average, for every 10-percentage-point increase in child poverty, FAFSA completion rates declined by 2.3 percentage points.
NCAN member organizations across the country work to address these barriers by providing FAFSA assistance — often through one-on-one advising — but demand for support still exceeds available resources.
The Solutions
The good news is that many states, cities, and school districts have demonstrated that FAFSA completion rates can increase significantly with targeted efforts.
NCAN’s FAFSA Completion Challenges in 2017–18 and 2018–19 showed that relatively modest investments could help school districts increase completion rates by at least five percentage points in a single year.
Effective strategies include:
- FAFSA completion challenges
- Student-level FAFSA data sharing with schools and organizations
- Universal FAFSA policies
- Partnerships between schools and community organizations
- Using federal funding streams, such as ESSER funds, to support college and career readiness activities
These strategies show that communities do not need to start from scratch — proven models already exist.
The Impact
FAFSA completion is strongly associated with college enrollment. 92% of seniors who completed the FAFSA enrolled in postsecondary education by the November following graduation, compared to 51% of seniors who did not complete the FAFSA.
Postsecondary education is associated with a wide range of positive outcomes, including stronger financial stability, improved health outcomes, and greater civic participation. Students who enroll immediately after high school are also more likely to complete a degree than those who delay enrollment.
Helping more students complete the FAFSA allows them to access the financial aid — including Pell Grants — that can make higher education attainable, especially for students facing historical and structural inequities such as poverty or systemic barriers.
By increasing FAFSA completion, states and communities are investing not only in students but also in the strength of their future workforce. When students succeed, we all benefit.