FAFSA stand for Free Application for Federal Student Aid. Basically, it is the U.S. Department of Education’s way of qualifying which students are eligible for financial aid.
The Free Application for Federal Student Aid (FAFSA) is the form used by the U.S. Department of Education to determine your Expected Family Contribution (EFC) by conducting a “need analysis” based on financial information, such as income, assets and other household information, which you (and your parents if you are a dependent student) will be asked to provide. The form is submitted to, and processed by, a federal processor contracted by the U.S. Department of Education, and the results are electronically transmitted to the financial aid offices of the schools that you list on your application.
FAFSA is the application used by nearly all colleges and universities to determine eligibility for federal, state, and college-sponsored financial aid, including grants, educational loans, and work-study programs.