why is it necessary to include your family's income and tax information on a fafsa application?

It is necessary to include your family's income and tax information on a FAFSA application because this financial data is used to determine your Student Aid Index (SAI), which directly affects eligibility for federal student aid, including grants, loans, and work-study programs. The FAFSA collects this information to assess your financial need and the expected family contribution to education costs. Consent to transfer this tax information from the IRS is mandatory to be considered for federal student aid. Without providing this information, or consent for its transfer, a student cannot receive federal aid. The tax and income details help FAFSA calculate how much aid you qualify for, based on your or your family's financial situation, including income, assets, and federal benefits received. The inclusion of parents' financial info is required for dependent students because the federal aid programs assume a dependent student has parental support.