The FAFSA system is imperfect but there are some practical reasons for its design: 1) On debt consideration: It would be extremely complex and costly to verify and evaluate all types of debt. How would they distinguish between a mortgage on a modest home versus a luxury mansion? Or medical debt versus optional cosmetic procedures? The administrative burden would be enormous. 2) On 529 plans: While it seems unfair, remember that the FAFSA formula only counts about 5.64% of parent-owned assets in the calculation. So if you have $50,000 in a 529, only about $2,820 of that is affecting your SAI. Plus, grandparent-owned 529s no longer impact FAFSA eligibility at all under the new rules. If your medical debt is substantial, definitely contact each school's financial aid office for a professional judgment review. They have the authority to make adjustments that the standard FAFSA cannot.

I completely understand your frustration - I'm going through the same thing as a first-time FAFSA filer! What really helped me was learning that there are actually some newer changes that work in our favor. The 2024-25 FAFSA simplified the formula and reduced the asset assessment rate. Also, I discovered that if you have significant medical expenses (sounds like you definitely do), you can submit documentation directly to each college's financial aid office for what's called a "special circumstances review" - they can actually override the FAFSA calculation. One thing that gave me some peace of mind: I talked to a financial aid counselor who explained that families who saved in 529s typically end up in a much better financial position overall, even with the slightly higher SAI. The small percentage they assess on your savings is usually way less than the loans you'd otherwise need. Hang in there - the system isn't perfect but there are people at the schools who can help with situations like yours!

Thanks everyone for the helpful responses! I feel much more confident about how to answer the household size question now. We will NOT include my sister in the household count since she's financially independent, even though she lives with us. I'm going to sit down with my parents this weekend to make sure we're all on the same page before completing the application. Really appreciate all the advice and personal experiences shared here!

You're making the right decision! Just to add one more helpful tip - when you're filling out the FAFSA, keep documentation handy that shows your sister's financial independence (like her tax returns, pay stubs, bank statements showing she pays her own bills). Even though you're answering correctly by not including her, if you do get selected for verification, having this documentation ready will make the process much smoother. Also, make sure your sister files her own FAFSA as an independent student if she's planning to go to school - her living situation won't affect her independent status for her own application. Good luck with your FAFSA!

UPDATE: I was able to complete my part of the FAFSA this weekend! For anyone else having this problem, here's what worked: 1. Log into studentaid.gov with your parent FSA ID 2. Click on "Apply for Aid" at the top 3. Then "Complete a FAFSA Form" 4. Look for "You have been invited to contribute to a student's FAFSA" The invitation wasn't showing up on my dashboard or in my emails, but it was hiding in that section. Once I found it, the rest was straightforward although I did have to reconnect to the IRS data retrieval tool twice because it timed out. Thanks everyone for your help!

As someone who just went through this process with my twin daughters, I wanted to add that if you're still having trouble finding the invitation, try logging out completely and logging back in. Sometimes the system needs a refresh to show pending invitations. Also, make sure your browser isn't blocking pop-ups from studentaid.gov - I discovered one of my invitations was being blocked by my browser's pop-up blocker. Another thing to watch out for: if you have multiple FSA IDs (which can happen if you forgot about an old one), make sure you're using the correct one that matches the email your child used when sending the invitation. The new FAFSA system is much more strict about matching email addresses exactly.

Just wanted to add another data point here - I'm a financial aid counselor and can confirm everything that's been shared is accurate. The FAFSA Simplification Act did remove parent-owned 529 plans from reportable assets starting with the 2024-25 FAFSA. This was actually one of the most significant changes for families who've been diligently saving for college. The old system penalized savers by assessing 529s at 5.64% of their value, but now federal aid calculations completely ignore parent-owned 529 accounts. However, I always recommend families check with each school's financial aid office about their institutional methodology, especially for CSS Profile schools, as they may still consider these assets when awarding their own grants and scholarships.

The ownership of a qualified education benefit (529 prepaid tuition plans or Coverdell Education Savings accounts) determines how the asset is reported on the FAFSA. The FAFSA Simplification Act made changes with regard to how ownership of a qualified education benefit is determined for FAFSA purposes or how the asset is reported on the FAFSA. The U.S. Department of Education (ED) provided clarification to the change in GEN-23-11 stating (bold added), "For dependent students, education savings accounts will only be counted as a parental asset if the account is designated for the student. Previously, if a parent had education savings accounts for their other children, the value of those was also required to be counted." An education savings plan (including a 529 plan) is considered to be an asset of the owner and should be reported as an asset (as part of the net worth of investments) on the FAFSA. However, if the plan is owned by the FAFSA parent of record for the benefit of another child (i.e., the beneficiary is not the child/student for whom the FAFSA is being completed), the plan is not reported as an asset of the parent of record. Likewise, such plans owned by individuals other than a parent (such as a grandparent) on behalf of the student are not reported anywhere on the FAFSA. If the student is the owner of the qualified education benefit, the value of the plan is reported as follows:  For a dependent student for whom the FAFSA is being completed and who is the owner of the education savings plan, the value is reported as an asset of the parent of record, even though the parent is not the owner. For an independent student who is the owner of the education savings plan, the plan is reported as an asset (as part of the net worth of investments) for the student on the FAFSA This is from the DEPT of Education

One more important tip: Once you receive all the financial aid offers, you can actually negotiate with schools. If School A offers your child a better package than School B, but they prefer School B, you can contact School B's financial aid office and politely ask if they can match or improve their offer based on the competing offer. Many parents don't realize financial aid offers aren't always final. This strategy works especially well when the schools are of similar ranking/prestige. Have digital copies of the competing offers ready to share when you make this request.

I'm so sorry for your loss and admire your strength in navigating this process for three kids at once. As a parent who went through this recently, I want to add a few practical tips: 1. Create a spreadsheet to track all the financial aid packages when they arrive - with triplets, you'll have a lot of numbers to compare across multiple schools. 2. Don't forget about state-specific aid programs. Many states have grants for residents that aren't always well-publicized but can add thousands to your aid package. 3. Consider reaching out to your high school guidance counselor too - they often have relationships with college financial aid offices and can sometimes make calls on your behalf. 4. If any of your kids are considering community college for the first two years, this could be a strategic way to reduce costs while they're all in school simultaneously. You're doing an incredible job managing this complex situation. The financial aid offices really do want to help families like yours - the key is just getting through to speak with someone who can understand your unique circumstances.