$4.4 billion in Pell Grants were left on the table for the high school class of 2024. With cost consistently cited as the number one reason students do not pursue higher education, completing a Free Application for Federal Student Aid (FAFSA) can be a game-changer, especially for students from low- and middle-income backgrounds who may be eligible for up to $7,395 in Pell Grants and even more in state financial aid.
Universal FAFSA is a policy that requires high school seniors to complete the FAFSA or an opt-out form as a high school graduation requirement. The policy continues to prove effective at raising and sustaining FAFSA completion rates in implementing states. However, only 13 states have passed a universal FAFSA policy, and Louisiana, New Hampshire, and Kansas have repealed their policies. While many nonprofits, community-based organizations,
and advocacy groups have pushed for universal FAFSA policies in their states, these efforts often face legislative hurdles and fail to advance to the governor’s desk.
Recently, some states without universal FAFSA policies are pursuing a different strategy by incorporating FAFSA completion into high school financial literacy curricula. For example:
Mississippi: The state’s College and Career Readiness Course Curriculum includes financial literacy competencies, one of which focuses entirely on applying for financial aid. In this unit, students are encouraged to complete both the FAFSA and the Mississippi Aid Application. They also learn key financial aid terminology
and are guided to research and prepare for external scholarships.
Iowa: Iowa requires school districts to ensure every student has an Individual Career and Academic Plan (ICAP). Beginning in 8th grade, students engage in a series of high-quality,
career-related activities and experiences that provide a platform for students to engage in the development of self-reflection, career research and exploration of postsecondary opportunities, and apply and align their learning with their personal
paths and goals.” In 2022, it became a requirement that school districts advise students on how to successfully complete the FAFSA as part of the ICAP process.
Florida: Starting July 1, 2025, a bill that was recently signed into law will embed instruction on completing the FAFSA within the required high school financial
literacy course curriculum. The curriculum includes instruction on the “costs of postsecondary education, including cost of attendance, completion of the Free Application for Federal Student Aid, scholarships and grants, and student loans.” Florida
students must already “earn one half-credit in personal and financial literacy and money management” to graduate.
Colorado: Students will soon be required to practice filling out a copy of the FAFSA or state financial aid form through Colorado’s recently passed financial literacy course graduation requirement bill.
Louisiana: Louisiana currently requires high school students to complete a one-unit financial literacy course to graduate. The state is now trying to expand the
curriculum to include the instruction of “scholarships, grants, and other financial opportunities to pay for postsecondary education” in its financial literacy curriculum.
Integrating FAFSA completion and instruction into financial literacy coursework is an innovative approach. Not only can it help students unlock federal financial aid, but it can also equip them with knowledge about paying for college and managing money.
While states that have adopted universal FAFSA policies see significant boosts in FAFSA completion during their first year of implementation,
states exploring other avenues such as embedding FAFSA instruction in financial literacy courses may offer a promising alternative. College affordability continues to be a major barrier to students accessing postsecondary education, and innovative
policy and programmatic efforts are more important now than ever. As Florida and Louisiana consider changes to their financial literacy curriculum, NCAN will continue to track their FAFSA completion progress through the FAFSA Tracker and share insights
on what is working so that more states can help students access financial aid.
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