It’s worth noting there are caveats to NerdWallet's findings: For one, the study dealt with high-school graduates who hadn't yet enrolled in college and only accounted for potential—rather than actual—aid money. And many American families aren't eligible for the aid. Still, what the report reveals is, perhaps, shocking: Less than half of high-school graduates last year actually filled out the FAFSA.

The FAFSA is the first step toward receiving Pell grants. As its name implies, the application is free—and, for the low-income students who are deemed eligible, the money it generates is free, too. Unlike loans, students don't have to pay off the aid. With the maximum Pell Grant amount valued at $5,775 per student for the 2015-16 year, the FAFSA alone doesn't always make a huge dent in tuition for students, especially those attending expensive private colleges. But for many it could cover the majority of the tuition at many public two- and even four-year colleges.



The amount of paperwork required complete the application could explain why so few people complete it. Filling out the lengthy form is a laborious process—and the Department of Education doesn’t try to hide that. In fact, the FAFSA "FAQ" page prominently displays the time requirements for each portion:

55 minutes to complete and submit an initial application

45 minutes to complete and submit a renewal application

10 minutes to make FAFSA corrections

But those could be extremely conservative estimates, according to one 2007 study, which calculated the form takes as many as 10 hours to fill out—roughly five times the amount indicated by the feds. The study’s analysis factored in the time it would take to source the relevant financial documents, verify the information, fill out the forms, and revise for errors. In many cases, completing the FAFSA is more tedious than filing taxes.

Last year, the Obama administration announced the launch of the so-called "FAFSA Completion Initiative," a program designed to bolster completion rates. In fact, the White House is currently hosting a competition—the aptly titled "FAFSA Completion Commencement Video Challenge"—to continue that endeavor. Aspiring college students can send in videos showcasing the creative approaches their schools are taking to ensure more students fill out the application.

Yes, the application for the government’s financial-aid program is so tedious that the very same government has to incentivize students to collect free money.



For good reason, the FAFSA has been a subject of intense political debate. Republican Sen. Lamar Alexander of Tennessee has been particularly vocal in his criticism of what he calls the "dreaded" FAFSA. Last month, while speaking to the Senate, he whipped out the 10-page, 108-question document. As the Senator spoke the document unrolled onto the floor like an ancient scroll: "This is the form that 20 million Americans fill out," he stated, after which he bandied the papers around for the duration of his speech as if they were a prop. "The problem with this is that it’s generally unnecessary."



Alexander has proposed a bill that he hopes would make the process far simpler: the Financial Aid Simplification and Transparency Act of 2015. (He's also set on making the application the size of a postcard.) "It will turn these [108] questions into two: One about amount of family income. And one about size of family," Alexander said.