Do I need to apply for FAFSA to get apply for any scholarship, and should I if I have a Pre paid plan?

if you are able to afford attending, including all the other costs and the fees that Florida Pre-Paid doesn't cover, why would you want to give your family's finances to anyone?  in this day and age of data thefts ...

You don't automatically get a loan when you complete the FAFSA.  The FAFSA just helps a school identify your level of financial need, and it is the school that offers you a financial aid package (including any loans).  You can decline any loans that you are offered.  But yes, many scholarships and grants require that you complete the FAFSA as part of their applications. 

FAFSA should always be files when you go to college. You can deny a loan if offered to you.  We paid cash for one semester for my son and the university still required him to fill out a FAFSA form.

Most scholarships are not awarded by filling out FAFSA.    Any scholarship you want you need to read requirements on how to apply for them.  

At my daughter’s university for all of their academic scholarships a student just needs to apply to the school. There is no other form they need to fill out to be considered for any academic scholarships. 

If they scholarships you are looking require you to fill out the FAFSA form, then do so.

Yes, you should fill out the FAFSA. Then the school will offer you a financial aid package. That might consist of scholarships, grants and loans. If they offer you a loan, one smart thing to do is take the money and invest it. Then, when you finish school, you can pay back the loan and perhaps have a profit. The interest rate on educational loans is very low.