The FAFSA form is used for determining eligibility for federal and state financial aid.
The Indiana Commission for Higher Education says the state should make more resources available for non-traditional adult students.
The project is estimated to take two years to complete.
The incentives for counties to participate go beyond wanting students to succeed.
The information is meant to help schools learn more about how well-prepared students are as they leave high school.
Governor Daniels says he wants to see the Commission use its power "liberally" to keep universities from requiring too many hours to earn a degree.
The Indiana Commission for Higher Education would be able to dictate how many credit hours it takes to graduate under a bill currently in the state Senate.
The Commission’s rate increase caps are three tiered – 2.5%, 3.0% and 3.5%.