Just wanted to add that if you're still in the planning stages, it might be worth looking at the Federal Student Aid Estimator tool on studentaid.gov. While it's not perfect, it uses the actual FAFSA formula and will give you a better sense of your Expected Family Contribution (now called Student Aid Index) based on your AGI. I used it last year and it was pretty accurate compared to my actual aid offer. It also shows you exactly which income figures it's pulling from your tax return, which might help clarify the AGI vs taxable income question for future reference.

As someone who just went through this process with my oldest child, I can confirm what others have said - FAFSA definitely uses your AGI, not taxable income. What caught me off guard was how much the "add-backs" impacted our final calculation. Even though our 401k contributions lowered our AGI by about $24,000, most of that got added back as untaxed income on the FAFSA. One thing that really helped me understand the process was downloading the actual FAFSA formula guide from fsaid.ed.gov - it's like 30 pages of technical details, but if you're a numbers person like me, seeing exactly how they calculate everything step-by-step was really illuminating. It shows you precisely how they start with AGI and then all the adjustments they make from there. The key takeaway for planning purposes: focus on strategies that actually reduce your AGI AND don't get added back. Things like HSA contributions and certain business deductions can help, while traditional retirement contributions are mostly neutral for FAFSA purposes since they get added back anyway.

I'm a newcomer here but wanted to share that I just went through this exact same situation last month! The panic is so real when you realize you've made this mistake, but honestly, reading through all these responses shows just how incredibly common this is. What really helped me was treating it as a learning experience rather than a crisis. I set up the email forwarding that someone mentioned, checked studentaid.gov twice daily for the correction option (it appeared on day 4 for me), and made sure to screenshot everything when I made the correction. One thing I'd add that might help - while you're waiting, this is actually a perfect time to double-check the rest of your FAFSA information to make sure there aren't any other small errors you might want to fix when that correction window opens. I found a couple of minor things I wanted to update when I was going back through everything. The financial aid office at my daughter's school told me they see this mistake literally every single day during FAFSA season. You're definitely not alone, and your daughter's aid won't be affected by this small hiccup!

I'm new to this community but wanted to jump in because I'm literally going through this exact same situation right now! I submitted my son's FAFSA 3 days ago and just realized I put my email instead of his. Reading through everyone's responses has been such a huge relief - I had no idea this was such a common mistake! I've already set up email forwarding like several people suggested, and I'm checking studentaid.gov twice daily for that correction option to appear. Based on everyone's timelines, it sounds like I should see it any day now. What's really helping me is seeing how many parents have been through this and had everything work out perfectly fine. The FAFSA process is already so overwhelming, especially for first-time parents, so it's easy to panic when you think you've messed something up. But this thread shows that these little mistakes happen all the time and are totally fixable. Thank you to everyone who shared their experiences - you've all made this so much less stressful for those of us going through it right now!

My daughter just started at UNL this fall!! Welcome to the Nebraska college parent club! We were in exactly the same boat last year, and what worked for us was I asked my employer for some unpaid time off instead of taking a second job. I basically worked 4 days a week instead of 5 for part of the year. It kept our income just under the threshold, and the drop in income was less than what we would have lost in aid. Plus I got to spend more time with my daughter before she left for college, which was priceless!

I'm dealing with this exact same situation right now! My daughter is a high school senior and we're just barely qualifying for some Pell Grant money too. What I've been doing is tracking our month-to-month income really carefully to see exactly where we stand. I created a spreadsheet to calculate the exact point where we'd lose aid versus what I'd gain from extra work. One thing that's helped is picking up occasional gig work (like DoorDash or Instacart) instead of a steady second job, because I can control exactly how much I earn and when. That way if we're getting close to the threshold, I can just stop working those extra hours. It's not ideal, but it gives me more flexibility than a traditional part-time job would. Good luck with everything - this whole process is so stressful!

One final clarification that might be helpful: For the 2025-2026 FAFSA, they'll be looking at your 2023 tax year information. So make sure you're considering what deferred compensation was earned in that specific tax year. And remember, the new FAFSA uses the Student Aid Index (SAI) instead of the old Expected Family Contribution (EFC), but the principles of income reporting remain similar. Good luck with your daughter's applications!

As someone who just went through this process with my own kid, I wanted to add that it's also worth keeping copies of all your employer documentation about deferred compensation plans. When I had questions, my HR department was actually super helpful in explaining exactly what was pre-tax vs post-tax and what would show up where on my W-2. They even gave me a letter explaining our deferred comp plan that I kept with my FAFSA documents just in case. Don't overlook your employer as a resource - they deal with these questions all the time and might have better explanations than the government websites!

UPDATE: I finally got through to my loan servicer (after being on hold for 1.5 hours)! Turns out it WAS a system error on their end. The rep said they did system maintenance last weekend and something got messed up with a bunch of IDR calculations. She fixed it while I was on the phone and confirmed my payment is still $35. She also put a note on my account so it shouldn't happen again. Thanks everyone for your help and suggestions!

So glad you got this resolved! This is exactly why I always recommend checking both your studentaid.gov account AND your servicer's site when there are payment discrepancies. System maintenance issues seem to be happening more frequently with all the FAFSA changes this year. For anyone else dealing with similar issues, Diego's experience shows how important it is to be persistent and not just accept unexpected payment increases without questioning them. Thanks for updating us with the resolution!