What happens if you never use FAFSA money?
Asked by: Isom Huels DDS | Last update: January 12, 2026Score: 4.7/5 (21 votes)
What happens to the leftover financial aid money? Well, that depends on you and how you want to handle it. In general, you'll receive a refund. You can then decide whether to send the money back or keep it and use it for future educational expenses.
What happens if I don't use my FAFSA money?
Grants and Student Loans
Any money left over is paid to you directly for other education expenses.
Can you return unused FAFSA money?
*You can return loan funds to your servicer more than 120 days after disbursement, but the return will be processed as a pre-payment on the loan, and you'll be charged interest and a loan fee on the amount you return.
What happens to unused work study money?
If unused, the Work-Study award will be lost, and will not be offered in the future.
Is it okay to apply for FAFSA and not use it?
The funds are managed by the school you enroll in. So if you don't enroll, no funds will be processed for you. There's nothing wrong with applying for aid, then not using it. You can still apply in the future with no penalty.
Sen. Bernie Sanders surfaced "No Vax, No Problem" baby onesies sold by RFK Jr. non-profit
Can I use FAFSA money on whatever I want?
Anything pertaining to your schooling is an appropriate use of financial aid. School supplies, a computer, travel costs to and from campus, books, tuition, childcare expenses (if applicable), and tutoring are all reasonable purchases for a serious student.
Is there a downside to submitting FAFSA?
Applying for financial aid could negatively affect admissions chances. If a student is on the cusp of admissibility, not applying for financial aid will classify the student as “full pay,” which can advantage them over another who would be eligible for need-based aid.
What happens with leftover FAFSA money?
If you've received some but not all of your approved grant amount, you'll see the remaining amount to be paid on your grant (that is, additional disbursements the school will make later in the year) when you review the grant details on your account “My Aid” page.
Does work-study money need to be paid back?
And unlike a federal student loan, you don't have to pay this money back. Here are eight things you should know about Federal Work-Study: You must submit the Free Application for Federal Student Aid (FAFSA®) form.
What happens to unused college funds?
529 funds can be used for qualified education expenses like room and board, books, supplies, technology, and private K-12 tuition. To avoid penalties, unused 529 funds can be saved for graduate school, transferred to another family member's 529 plan, or you can change the beneficiary.
What happens if I don't use all my Pell Grant money?
Typically, an institution puts the Pell Grant award in the student's account balance automatically to cover tuition, fees, and room and board. If there are additional funds left over, a student will be issued a credit. The form of this credit varies depending on the institution.
What happens if I don't use all my student loan money?
Remember: any unused student loan money is still part of your loan and must be repaid. You are responsible for paying interest on the unused funds, even if you don't use them at the original disbursement date. Use our Loan Calculator to determine the monthly loan payment and total payments on your student loans.
Does FAFSA money expire?
No. The award is for the academic year that you applied for only.
Do you have to return unused FAFSA money?
If you have unneeded funds from your student loan refund and it is within 120 days of disbursement, it is financially smart to return that money. If you anticipate having unneeded funds following a future disbursement, you can request that the Office of Financial Aid cancel or reduce the upcoming disbursement.
Do I have to pay back FAFSA money?
FAFSA is not financial aid itself; it is just an application, so you do not have to pay anything back.
What happens if you don't use all your scholarship money?
If there is some left over, your school might send the unused money in a refund check. If they do, you can't turn it into personal cash. Scholarships are awarded for specific educational expenses, so you can't use leftover funds for other things, like vacations or clothes, unless the scholarship guidelines allow it.
Do you have to pay back federal Pell grants?
A Federal Pell Grant, unlike a loan, does not have to be repaid, except under certain circumstances. Find out why you might have to repay all or part of a federal grant. You may not receive Federal Pell Grant funds from more than one school at a time.
What happens to leftover work-study money?
What Happens to Unused Work-Study Money? Unused work-study funds carry over between semesters. Students do not pay a penalty for not using all of their work-study awards in a school year. However, work-study is recalculated annually, so excess funds will not carry over from one school year to the next.
Can I buy a car with FAFSA money?
Cars: Using your student aid for transportation can include gas and maintenance for a pre-owned car, but you cannot use your aid to buy a car during your time in college. If you buy the car using some other means, you can use the aid for gas and repairs, however.
Can I spend FAFSA money on anything?
You can only spend your federal financial aid money on purchases that are necessary for you to continue your studies, i.e. expenses that are directly related to your education, such as tuition and fees, transportation, books, room and board, supplies and related expenses like child care.
Does FAFSA delete accounts?
You can't delete an existing StudentAid.gov account (FSA ID), but you can disable it. Log in and toggle “FSA ID Status” from “Enabled” to off under Account Information, within Settings. Was this page helpful? How do I set up an authenticator app for my two-step verification?
Can you fill out FAFSA and not use it?
Answer. Completing the Free Application for Federal Student Aid (FAFSA®) does not mean you are awarded money right away. The information provided on the FAFSA is shared with your prospective colleges and you will only receive financial aid monies from the school where you decide to enroll.
What is the most common mistake made on the FAFSA?
- Forgetting to sign and date: If you're filling out the paper FAFSA, be sure to sign it.
- Sending in a copy of your income tax returns: You do not need to include a copy of your tax returns with your FAFSA.
What income is too high for FAFSA?
Technically, no income is too high for the FAFSA. The U.S. Department of Education recommends filling out the FAFSA yearly, regardless of income. However because FAFSA is needs-based aid, those from lower-income families with a greater financial need get access to more financial aid.