What is IRS Data Retrieval Tool in FAFSA application, and how does it help?

To help fill out the Free Application for Federal Student Aid (FAFSA) form, Internal Revenue Service (IRS) has come up with a mechanism to retrieve the data of taxpaying students and parents. Through the IRS DRT, it has become effortless to access and transfer the data directly to the FAFSA form.

It can securely transfer the authentic IRS tax return information. The benefit of using this tool is that you would not have to go through the hassle of providing your parent’s income tax returns to your college. Additionally, during times of inflation, many families can easily avail of financial aid for their children.




According to a study, 70% of families finished the FAFSA last year, and about 72% are expected to do it this year. The eligibility criteria for financial aid are that you must either be a US citizen or show financial need for a requirement-based student aid scheme and must also be enrolled in an eligible course. Moreover, you would be eligible for the scheme if you are a non-citizen with a green card.

FAQs

1. What is FAFSA?
   FAFSA, a Free Application for Federal Student Aid, is a form that determines whether a student is eligible for aid.
2. What is IRS DRT?
   Internal Revenue Service Data Retrieval Tool helps you retrieve your tax returns information and efficiently complete the FAFSA. Through this tool, a student won't be required to provide the ITR of his parents.