FAFSA Scholarship for Indian Students: Complete Details!

14 min read

Whether it’s tuition fees, living costs, or just the basics for studying in the US, you’re probably already wondering, “How can I make this work?”

Well, you’re not alone. With over 13.3 lakh Indian students heading overseas in 2024 alone, many are in the same boat, looking for ways to lighten the financial load. That’s where the FAFSA scholarship comes into play when studying in the US. 

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Securing a FAFSA scholarship can be challenging for international students, as applicants must have a Social Security Number (SSN) to be eligible for the program.

Let’s look closely at the requirements, eligibility and more.

Key Highlights 

The table below outlines the key highlights of the FAFSA scholarship that you will learn about in greater detail. 

Highlight Details 
FAFSA Full Form Free Application for Federal Student Aid
Types of FAFSA ScholarshipsFederal Grants, Work-Study, Federal Student Loans, State Aid, Institutional Aid
Top FAFSA Grants Pell Grants, FSEO Grants, TEACH Grants 
Average Reward AmountUSD 4K (INR 3.3L) per year
Top Universities to Study with the Grant Massachusetts Institute of Technology (MIT), Harvard University, Stanford University

What is the FAFSA Scholarship?

The FAFSA scholarship stands for Free Application for Federal Student Aid, which helps you access various federal and state financial assistance to study in the US. This federal aid is provided by the US government or US state governments for US citizens or eligible non-US citizens.

Many scholarships and aid decisions by states, universities, and institutions rely on FAFSA for scholarships to determine eligibility and financial need. This aid helps bridge the gap between the cost of college and what students can afford.

Federal student aid from the FAFSA can cover tuition, fees, housing, meals, books, supplies, and transportation. The application period starts on October 1 of the year before the award year and remains open for 19 months, closing on June 30 of the award year.

Benefits of the FAFSA Scholarship

It’s midnight at Harvard, and just before finals, students gather for the Primal Scream. It is a moment when everyone expresses their stress with a loud shout. 

While that might be one way to release pre-exam worries, there’s a quieter way for you to ease your financial ones- applying for the FAFSA scholarship. 

Not convinced you need one? Here are the benefits of the FAFSA scholarship for international students that’ll help. 

  1. FAFSA scholarships are open to all income levels, so no specific income requirement is needed.
  2. Colleges use FAFSA applications to assess eligibility for various scholarships.
  3. FAFSA student financial aid scholarships help reduce the burden significantly as they don’t need to be repaid.
  4. You can apply for federal, state, and college grants through a single FAFSA application.
  5. Submitting a FAFSA can also qualify you for merit-based scholarships offered by institutions.
  6. FAFSA provides access to federal student loans with lower interest rates than private loans.
  7. FAFSA makes you eligible for work-study opportunities, allowing you to earn money while studying.
  8. There’s flexibility to accept only the aid you need, whether it’s grants or loans.
  9. FAFSA financial aid scholarships can be renewed annually, ensuring continuous financial support.

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Types of Financial Aid Available Through FAFSA

The United States is the top destination for Indian students, and the Indian-American community now exceeds five million. 

If you want to join this growing community, you’re in luck. The FAFSA opens the door to various forms of student financial aid scholarships, making studying in the US more affordable for eligible students like yourself. 

But first, take a closer look at the different types of financial assistance available through the FAFSA scholarship.

Type of AidDescription
Federal GrantsNon-repayable financial support for students with financial need.
Work-StudyPart-time employment for students with financial need, offering community service and relevant work experience.
Federal Student LoansLoans must be repaid with interest.
State AidGrants, scholarships, and other financial aid states offer, often based on FAFSA results.
Institutional AidFinancial aid from colleges, including scholarships and grants, is determined using FAFSA data.

What are the Eligibility Requirements for the FAFSA Scholarship?

Applying for the FAFSA scholarship for international students can feel a bit like preparing for a marathon. You’ve got to make sure you’ve got the right shoes, the proper mindset, and, of course, meet all the requirements.  

As Benjamin Franklin wisely said, “By failing to prepare, you are preparing to fail.” Knowing the eligibility criteria ahead of time will save you from many headaches later. 

So, before you lace up your sneakers (or hit “submit”), ensure you meet all the essential requirements to qualify for this financial aid!

To be eligible for the FAFSA scholarship, you must meet several criteria. 

  1. You must be a U.S. citizen or an eligible non-citizen.
  2. If you are not a U.S. citizen, you are required to provide a valid Social Security Number or alien registration card. 
  3. You must register with the Selective Service System if you’re a male between 18 and 25.
  4. You must have a high school diploma, GED, or have completed homeschooling.
  5. You must be enrolled or accepted into an eligible degree or certificate program as a regular student.
  6. You must maintain satisfactory academic progress to continue receiving aid.
  7. Most aid programs require that you demonstrate financial need, which is determined by your FAFSA application.
  8. You cannot be in default on federal student loans or owe a refund on any federal grants.
  9. You must not have any convictions related to the sale or possession of illegal drugs while receiving federal aid.
  10. Finally, you must sign the FAFSA certification statement to complete your application.

Documents Required For FAFSA Scholarships 

The United States, ranked third in the world for Best Countries Overall by U.S. News, is a top destination for students seeking higher education. If you’re gearing up to study in this world-class education hub, securing student financial aid scholarships through FAFSA can make your dream more affordable. 

But before you dive into the application, you’ll need to gather some essential documents. Here’s a list of the vital paperwork you’ll need to complete FAFSA scholarships successfully.

  1. Social security number (or alien registration card if not a U.S. citizen).
  2. 2023 federal income tax returns, W-2s, and records of earned income.
  3. Parents’ income tax returns, W-2s, and 1040 forms (if dependent).
  4. Nontaxable income records (welfare, social security, and veterans’ benefits).
  5. Additional financial information (work-study, assistantships, grants, scholarships).
  6. Bank and investment account statements (if applicable).
  7. Business or investment farm records (if applicable).
  8. Unusual family financial circumstances (medical expenses, job loss, divorce).
  9. Title IV institution codes for the schools you are applying to.
  10. FSA ID to electronically sign your FAFSA form (parents will need one, too, if dependent).

FAFSA Scholarship Application Process

Did you know that 38.6% of undergraduates receive an average of INR 6.3L (USD 7.5K) in federal loans annually? 

Whether you’re a first-time applicant or looking to renew your aid, following the right steps will help you get the funding you need to make your college dreams a reality. 

Check out the application process and ensure you’re well-prepared to access this valuable financial aid. 

  1. Create your Federal Student Aid (FSA) ID: Visit the Federal Student Aid website to set up your FSA ID, which serves as your legal signature and grants you access to online FSA systems.
  2. Start your FAFSA login form: Go to fafsa.gov to begin your FAFSA scholarship application. You can also use the myStudentAid app for convenience.
  3. Fill out your student demographics: Provide your personal information, including your name, date of birth, and contact details in this section.
  4. List schools to receive your information: Enter the school codes for up to 10 colleges or universities you are considering attending.
  5. Input parental information if required: If you are a dependent student, you must include detailed information about your parents.
  6. Provide financial information: To simplify the process, use the IRS Data Retrieval Tool to transfer your tax return information directly into your FAFSA form.
  7. Sign and submit your FAFSA: Use your FSA ID to sign your application electronically. Your parent must sign with their FSA ID if you are a dependent student.
  8. Review your Student Aid Report (SAR): After submitting your application, you will receive an SAR summarising your provided information.

    The Student Aid Report (SAR) is an electronic or paper document that summarises the information you submit on the FAFSA. It details your expected family contribution and eligibility for federal student aid. Carefully review it for any errors.
  9. Correct or update your FAFSA (if necessary): If you find any inaccuracies or need to make updates, log back into your FAFSA account to make the required changes.
  10. Review and compare financial aid offers: Once accepted into a college or university, you will receive financial aid offers. Take the time to compare these offers to understand your eligibility for aid from each institution.
  11. Accept your financial aid: Follow the specific instructions provided by your chosen institution to accept the financial assistance you have been offered. 

Top FAFSA Grants for Students

A grant is a valuable form of financial aid that does not have to be repaid, making it an excellent resource for students seeking financial assistance for their education. 

However, there are certain circumstances under which you may need to repay a grant, such as withdrawing from school or failing to fulfil service obligations for specific grants.

Here are several types of federal grants that are available through FAFSA. 

Grant NameReward Amount
Pell GrantsFull-time enrollment: USD 3.7K (INR 3.1L) 
Three-quarter time enrollment: USD 2.7K (INR 2.2L) 
Half-time enrollment: USD 1.9K (INR 1.6L)
Less than half-time enrollment: USD 925 (INR 77.6K) 
Federal Supplemental Educational Opportunity Grants (FSEOG)USD 100 to USD 500 (INR 8.4K to INR 42K) per fall/summer/spring semester
Teacher Education Assistance for College and Higher Education (TEACH) GrantsUp to USD 4K (INR 3.3L) per year 
Iraq and Afghanistan Service GrantsUp to USD 7K (INR 5.9L) per year 
  1. Pell Grants

Pell Grants are designed to assist undergraduate students who demonstrate significant financial need. These grants provide essential support to help cover tuition and other educational expenses, making higher education more accessible. 

Indian students who are U.S. citizens or eligible non-citizens can apply for Pell Grants by completing the FAFSA form, which assesses their financial situation and determines eligibility. 

  1. Federal Supplemental Educational Opportunity Grants (FSEOG)

FSEOGs are awarded to students with exceptional financial need and are typically given to those receiving Pell Grants. This grant serves as additional financial support to help cover educational costs. 

Indian students eligible for federal aid can apply for FSEOG by completing the FAFSA and indicating their financial need, which will be assessed by their chosen institutions.

  1. Teacher Education Assistance for College and Higher Education (TEACH) Grants

TEACH Grants are available for students who plan to become teachers in high-need fields, such as math, science, or special education. Recipients must complete a service obligation by teaching in low-income schools for a specified period after graduation. 

Indian students who meet the eligibility criteria can apply for TEACH Grants by completing the FAFSA and committing to the service requirements outlined by the program.

  1. Iraq and Afghanistan Service Grants

This grant is offered to students whose parents or guardians died in military service in the U.S. after the events of 9/11. It helps cover educational costs for eligible students. Indian students are generally not eligible for the Iraq and Afghanistan Service Grants unless they meet specific criteria. 

When Do You Have to Repay the Grant Amount?

While grants are generally free money, there are situations where you may be required to repay all or part of a federal grant. Here are some common scenarios. 

FAFSA Scholarship for Indian Students: Complete Details!
  • Withdrawing Early: If you withdraw from the program for which the grant was awarded, you may need to repay the funds.
  • Change in Enrollment Status: If your enrollment status changes (for example, from full-time to part-time), it may reduce your eligibility for the grant, leading to a repayment requirement.
  • Receiving Outside Scholarships: If you obtain scholarships or grants from outside sources that reduce your financial need, you might have to repay a portion of your federal student aid.
  • TEACH Grant Requirements: If you receive a TEACH Grant but do not fulfil the service obligation, you must repay the grant.
  • Multiple Pell Grants: If you receive Pell Grant funds from more than one school simultaneously, you may need to repay the excess amount.

If you are required to repay part of your grant, your school will notify you of the amount owed. From that point, you will have 45 days to pay the specified portion in full or set up a satisfactory repayment arrangement.

Common Mistakes to Avoid During FAFSA Application

Applying for FAFSA is crucial for securing financial aid for college, but many students make mistakes that can delay or reduce their eligibility. To ensure you maximise your benefits, avoid these common FAFSA application mistakes. 

  1. Not applying at all: Even if you think your income is too high, the FAFSA has no set income limits, and it is free to apply. Some scholarships require the form.
  2. Waiting until the last minute to apply: FAFSA has federal and state deadlines, and applying early increases your chances of receiving the maximum aid before funds run out.
  3. Not doing the prep work: Gather essential documents like Social Security numbers, tax returns, and bank statements before starting your application.
  4. Not creating an FSA ID: Both students and parents need unique FSA IDs to sign and submit the FAFSA. This ID allows you to return and update your application as required.
  5. No going back to correct mistakes or make updates: Review your FAFSA for errors and update any changes in your financial situation that could affect your eligibility.
  6. Not using the IRS Data Retrieval Tool: This tool automatically transfers your tax information, reducing errors and speeding up the processing of your application.
  7. Not checking your email after filing: Be on the lookout for emails requesting verification or additional documentation, and respond quickly to ensure timely responses.
  8. Not carefully reviewing your SAR or financial aid offers: After receiving your Student Aid Report, verify all information and review aid offers carefully, prioritising grants and scholarships over loans.

FAFSA Scholarships vs Other Scholarships

Understanding the difference between FAFSA for scholarships and other scholarship opportunities is essential for financing your education. 

Each year, the percentage of students accepting financial aid rises by an average of 1.15%, reflecting the increasing reliance on various funding sources. While FAFSA scholarships provide significant benefits for eligible students, including FAFSA scholarships for international students, it’s essential to explore how they compare to other available scholarships. 

Examine the key distinctions and advantages of FAFSA scholarships versus other financial aid forms.

FeatureFAFSA ScholarshipsOther Scholarships
Source of AidProvided by the federal government, influencing state aid.Offered by colleges, universities, and private entities.
Basis for AidPrimarily need-based.It can be need-based or merit-based (academic and athletic).
Application ProcessRequires completing the FAFSA form.You may need separate applications, essays, or auditions.
EligibilityLimited to U.S. citizens or eligible non-citizens.Broader, including international students.
RenewalAnnual FAFSA re-submission is required.Some are one-time, others renewable.
Amount of AidBased on government formulas for financial need.Varies widely, from small awards to full tuition.
Impact on Financial AidCan reduce other need-based aid.It may not affect other aid.
AvailabilityNationwide for eligible schools.It may be restricted by school, region, or criteria.

Top Universities to Study with FAFSA Scholarships

With over 10L international students studying in the United States during the 2023 academic year, the U.S. is your place to be! 

Are you ready to take selfies with the Liberty Statue and explore breathtaking national parks such as Yellowstone and the Grand Canyon? Great! But first, pick your university to study at with a FAFSA scholarship

Here are some top universities where you can utilise FAFSA scholarships to support your educational journey.  

University NameQS Ranking 2025Average Annual Tuition Fees
Massachusetts Institute of Technology (MIT)1INR 67.2L (USD 80K)
Harvard University4INR 70.1L (USD 83.5K)
Stanford University6INR 69L (USD 82.2K)
University of California, Berkeley12INR 36.1L (USD 43K)
University of Michigan, Ann Arbor44INR 28.1L (USD 33.5K)

Ready to pursue your dream education at top universities in the US? You can also take a loan with Leap  Finance, offering no collateral, interest rates starting from 11%, and coverage for study and living costs. Apply online in just 10 minutes! 

Also Read: Cost of Studying in the USA: A Complete Guide for 2024. 

Conclusion 

The world of FAFSA scholarships can be your golden ticket to studying in the U.S. With the right funding, you can enjoy a stellar education that will have you earning an average annual salary of INR 53.7L (USD 64K) after graduation. 

And that’s now even the best part! What’s more? LeapScholar is by your side to guide you throughout your journey! So ditch the worry.

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Frequently Asked Questions

  • Q. What is the FAFSA for scholarships?

    A. The FAFSA for scholarships is the Free Application for Federal Student Aid, which allows you to apply for various federal and state financial aid. This application helps determine your eligibility for financial aid scholarships, including grants and loans.

  • Q. Can international students apply for FAFSA scholarships?

    A. Yes, options, such as the FAFSA scholarship for international students, are available. However, you must meet specific eligibility criteria, including being an eligible non-citizen, to qualify for federal aid.

  • Q. What types of financial aid scholarships can I receive through FAFSA?

    A. Through FAFSA, you can receive various financial aid scholarships, including federal grants, work-study opportunities, and federal student loans. Each type is designed to help reduce your educational expenses.

  • Q. How do I start my FAFSA scholarship application?

    A. To start your FAFSA scholarship application, visit the FAFSA website and create your FSA ID. Then, complete the online application form, providing information about your financial situation and educational plans. Make sure to gather all necessary documents beforehand to streamline the process and avoid any delays.

  • Q. What documents do I need for my FAFSA scholarship application?

    A. You’ll need several documents for your FAFSA scholarship application, including your Social Security number, tax returns, and details about your family’s income. Having these documents ready will streamline your application process.

  • Q. How is my financial need determined for FAFSA for scholarships?

    A. Your financial need is determined based on the information you provide in your FAFSA for scholarships application. The calculation considers your family’s income and assets, which helps establish your eligibility for various financial aid scholarships.

  • Q. Can I apply for FAFSA scholarships if I’m not a U.S. citizen?

    A. If you’re not a U.S. citizen, you may still be eligible for some aid through the FAFSA scholarship for international students, but you must meet specific criteria. Check with your school’s financial aid office for more details.

  • Q. Are FAFSA financial aid scholarships renewable each year?

    A. Many FAFSA financial aid scholarships are renewable each year, provided you maintain satisfactory academic progress and reapply by submitting your FAFSA scholarship application annually.  It’s essential to keep track of deadlines and requirements to ensure you continue receiving the aid you need.

  • Q. What happens if I need to make changes to my FAFSA scholarship application?

    A. If you need to make changes to your FAFSA scholarship application, you can log back into your account and update your information. This ensures that your financial aid package accurately reflects your current situation.

  • Q. How do I compare financial aid offers from different schools?

    A. To compare financial aid offers, review the financial aid packages you receive after submitting your FAFSA scholarship application. Look at the total amount offered, including grants, loans, and work-study opportunities, to determine which school provides the best financial support.

  • Q. What should I do if my financial situation changes after submitting my FAFSA?

    A. If your financial situation changes after submitting your FAFSA, you should contact your school’s financial aid office. They can guide you on how to update your FAFSA for scholarships and potentially adjust your financial aid package.

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Prachi Sethi

Hi, I am Prachi, an experienced writer with extensive knowledge about the study abroad domain in particular countries such as the USA and Canada and other popular courses.
My expertise in SEO allows me to create high-quality content that engages and informs students and helps them fulfil their International Dreams.

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