What information is typically collected on the FAFSA form?

The FAFSA form, or Free Application for Federal Student Aid, is designed to gather comprehensive financial and demographic information to assess a student's eligibility for federal financial aid. The correct response, which includes both the student's and their parents' financial information, household size, and the number of family members who will be enrolled in college during the academic year, reflects the necessary details needed to determine financial need.

This information is crucial because the financial aid process aims to evaluate the economic situation of the student's family, thereby allowing aid administrators to calculate the Expected Family Contribution (EFC). The EFC is then used to determine eligibility for various types of financial aid, including federal grants, work-study programs, and loans.

In contrast, the other options do not capture the full intent and purpose of the FAFSA. Collecting only the student’s Social Security number would be insufficient, as it doesn’t provide any information about financial status or household composition. Relying solely on previous year tax returns would not encompass all relevant financial and demographic aspects, as it misses vital current data that may influence aid eligibility. Lastly, gathering details about a student’s high school grades is not part of the FAFSA’s focus, as the form prioritizes financial information over academic performance.