Each year, students miss out on Pell Grants, state aid, and scholarships because of small but costly FAFSA mistakes. Most of these errors are easy to avoid, especially if you use smart tools like Orbit AI to guide you. This guide walks through the most common FAFSA mistakes and how to fix them.

1. Waiting Too Long to File FAFSA

One of the biggest mistakes is waiting. The FAFSA for 2025–2026 opens October 1, 2024, and aid is often first-come, first-served. Filing late means you can miss out on state grants, institutional aid, and work-study funds. Learn more about important dates in our guide: When Does FAFSA Open?

2. Forgetting to Create or Recover Your FSA ID

Both students and parents need a unique FSA ID to sign the FAFSA. Forgetting to create one ahead of time is a common error that delays applications. Be sure to create or recover your FSA ID before October 1 so you're ready to file on day one.

3. Entering Incorrect Income or Asset Information

Small errors here can reduce your aid eligibility. Common mistakes include misreporting income from work-study or incorrectly listing retirement accounts as reportable assets. The Orbit AI checks for these errors as you complete your form.

4. Not Listing All Colleges You’re Applying To

You can list up to 20 colleges on your FAFSA. List every school you are considering, even if you are not sure you will enroll. Failing to list a college can delay your aid offer from that school, or cause you to miss their priority deadline.

5. Skipping FAFSA Because of Assumptions

Many families assume they won't qualify for aid. This is a myth. There is no strict income limit, and FAFSA is the key to federal, state, and institutional grants, scholarships, and work-study. Every student should file. Learn more about how much aid you can get and specific resources for financial aid for low-income students.

6. Not Applying for Scholarships

Many students focus only on FAFSA and skip scholarships—a huge mistake. Use the Orbit AI Scholarship Search Engine to find personalized matches and review our guide on Common Scholarship Application Errors to submit stronger applications.

FAFSA Mistakes FAQ

What is the biggest mistake on the FAFSA?

Waiting too long to file. State grants and institutional aid can run out, so filing early (close to the October 1 open date) gives you the best chance for maximum aid. Get the full rundown in our How to Apply for Financial Aid guide.

What if I made a mistake on my FAFSA after submitting?

You can log back into the FAFSA website and make corrections to your application using your FSA ID, even after it has been processed.

What is the penalty for lying on the FAFSA?

Intentionally misreporting information is a federal crime and can result in hefty fines, loss of aid, and even prison time. Honest mistakes, however, can and should be corrected without penalty.

How can first-generation students avoid FAFSA mistakes?

Using a step-by-step tool like the Orbit AI can help first-gen students and families navigate the process more easily and avoid common errors.

By Devansh Dubey (Last updated: June 22, 2025)