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(Image by Memed_Nurrohmad from Pixabay)

FINANCIAL AID PROVIDES much-needed access to higher education, particularly for low-income students. Still, an estimated 830,000 Pell Grant-eligible students did not complete the Free Application for Federal Student Aid, or FAFSA, in the 2024 cycle, leading to nearly $4.4 billion in unclaimed Pell Grant awards.

Students across the country lose out on thousands of dollars in college financial aid because they do not fill out the FAFSA.

Undergraduates who complete the FAFSA receive, on average, about $16,810 per year in total financial aid, including federal grants, loans, work-study, and other federal funds. Of that aid, roughly $12,080 comes in grants and scholarships that do not need to be repaid.

Students cannot qualify for financial aid without completing the FAFSA—it is the gateway to federal and state financial assistance, including Pell Grants, state scholarships, and low-cost loans. Yet many students—especially first-generation and low-income students—miss out on this financial aid simply because they never apply, not because they are ineligible.

That’s why we support the Healey administration’s effort to make applying for financial aid a graduation requirement in Massachusetts. Gov. Healey’s K-12 Statewide Graduation Council released its initial recommendations in December, and completing the FAFSA or its state equivalent, the MASFA, with an option to opt out, is one of seven elements that make up the council’s framework for a statewide graduation requirement.

Momentum is also building in the Legislature, with An Act to Facilitate Student Financial Assistance, a bill that mirrors the graduation council recommendation by requiring require that students complete a state or federal aid application or opt-out prior to high school graduation.

A dozen states already require FAFSA completion to graduate, including Alabama, Texas, New Jersey, and New York. While the FAFSA is not required to graduate in Massachusetts, it is required for most state financial aid programs, including MassEducate and MassReconnect, which cover costs at the state’s 15 community colleges.

There are major equity and opportunity gaps when you break down the data. In 2024, 51 percent of Massachusetts high school seniors completed the FAFSA or MASFA, but only 35 percent of students who are low-income, 33 percent of Hispanic/Latino students, and 44 percent of Black students. These disparities match what we see in immediate college-going rates for the same student groups.

Perhaps most importantly, completing the FAFSA strengthens college and career readiness. Students who complete the FAFSA by the end of senior year are 84 percent more likely to enroll in college. The process helps students understand costs, plan ahead, and make informed decisions about their postsecondary options.

Other states like Alabama and Texas have proven this works, with increases of 11 percent and 14 percent, respectively, in FAFSA completion rates after making form submission a graduation requirement.

While completing the FAFSA is critical for most students, it is important to provide an opt-out option as well. Some students and families may be unable or unwilling to complete the application process, or may have alternative postsecondary plans. That’s why the governor’s graduation council also recommends an opt-out process that will be uniform across the state.

Making FAFSA completion a graduation requirement in Massachusetts isn’t about mandating college. It’s about keeping every door open. It’s about removing barriers, expanding opportunities, and making sure every high school student graduates with the necessary resources to follow their dreams, whether it’s postsecondary education, enrolling in military or other service, or entering directly into the workforce.

Femi Stoltz is Massachusetts policy director at uAspire, a Boston-based nonprofit organization focused on college affordability and financial aid counseling.