<p>Why is it so important to fill out the FAFSA form on Jan 1st?</p>
<p>It's not. It's just that the FAFSA is not available until Jan. 1 for the coming year.</p>
<p>It is true, however, that some schools do review the financial aid applications in the order that they are received. But at many schools, it's just like admissions - get it in before the deadline and you should be fine. Miss the deadline, by even one day, and you could be leaving money on the table that will now go to someone else.</p>