Free FAFSA Guide
Each college or university must receive the student’s information from the FAFSA before its financial aid deadline. So, if the student is applying to more than ten colleges and universities, the student should list the colleges and universities with the earliest financial aid deadlines in the first set of colleges and universities.
Beginning with the 2016-2017 FAFSA, colleges can no longer see the full list of colleges listed on the FAFSA. Previously, colleges could see the full list of colleges on a student’s FAFSA. Most students listed the colleges in preference order, listing their first choice college and about a one-third of students admitted by their second-choice college first. Research has shown that students are less likely to enroll at a college that appears further down the list. For example, while about half to two-thirds of students admitted by their first-choice college will enroll, only about ten percent will enroll at their third-choice college.
Recognizing this, some colleges may have been using the order in which the colleges were listed on the FAFSA as a form of competitive intelligence to influence college admissions and financial aid decisions. For example, students are much less likely to enroll in a college that isn’t listed first, second or third. So, a college might decide against admitting the student in order to improve the college’s selectivity.
Some colleges want to maximize their yield, the percentage of admitted students who actually enroll at that school. Accordingly, some colleges are less likely to admit students who demonstrate less interest in the college. This is an open secret, although the practices at specific colleges are unknown. However, some private colleges may be more likely to use the student’s preference order on other financial aid and admission forms to influence college admissions decisions, since these colleges place more emphasis on improving their ranking in lists of top colleges.
Colleges also use the student’s preference order to get more certainty about their incoming class. As more students apply to more colleges, not only are the students worried about whether they will get in, but the colleges also worry about whether the students will enroll.
The order in which colleges are listed on other financial aid and admission forms can also affect eligibility for financial aid. While the order does not affect eligibility for federal student aid via the FAFSA, it can affect state and institutional aid. For example, the U.S. Department of Education mentions the potential impact on state aid in its Guide to Completing the FAFSA:
For purposes of federal student aid, it does not matter in what order you list the schools. However, to be considered for state aid, several states require you to list a state school first. Therefore, if you plan to list a state school in your state of residence as one of the schools in this section, you might want to list it first.
The list of colleges on the FAFSA will still be submitted to the state in which the student resides so that they can evaluate a student’s eligibility for state grants. Some state grants are restricted to students who enroll at one of the state’s public colleges. In some cases, one of the state’s public colleges must be listed first on the FAFSA.
In addition, the National Association for College Admissions Counseling (NACAC) amended its Statement of Principles of Good Practice on October 3, 2015 to state that colleges will “not ask candidates, their schools, their counselors or others to list or rank their college or university preferences on applications or other documents.”
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