Colleges use FAFSA information to reject students and potentially lower financial aid packages | Inside Higher Ed
Yet more on hidden practices during college admissions and the things that first -generation students would have no way of predicting could matter in their applications.
“In a 2012 guidebook to the FAFSA, the federal government makes clear — on page 67 of a 71-page document — that it does not use FAFSA position to determine federal aid packages, but it suggests some states use FAFSA position to calculate aid. “For purposes of federal student aid, it does not matter in what order you list the schools,” the guidebook said. “However, to be considered for state aid, several states require you to list a state school first.”
The FAFSA form itself tells students, “For state aid, you may wish to list your preferred college first.” But it gives students little indication about what else can happen using the list.”