What form must current and prospective college students complete annually to determine eligibility for federal student aid?

• A. Loan Application
• B. Fafsa
• C. Scholarship Application
• D. Tax Return

Answer: (B)

The form used to determine eligibility for federal student aid is the Free Application for Federal Student Aid (FAFSA). Students fill it out each year they want federal aid, since eligibility can change from year to year. FAFSA gathers information about family income, assets, household size, and number of people in college, and uses that data to calculate need and determine what federal aid you qualify for, such as Pell Grants, Direct Loans, and work‑study. It also influences many states’ aid and some colleges’ aid packages. Other options aren’t the official way to determine federal aid—loan applications are for borrowing, scholarship applications are for specific scholarships, and a tax return provides income info but isn’t itself the aid eligibility form. FAFSA is the standard, nationwide mechanism for assessing federal aid eligibility.