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lol yeh do it, it's like buying a lottery ticket that's free. might win something might not but costs nothing to try ¯\_(ツ)_/¯
One more important point: Even families with higher incomes often use Parent PLUS loans to help pay for college, and you need a completed FAFSA on file to access those. Many families use a combination of the student's Direct loans (from FAFSA) and Parent PLUS loans to bridge gaps. So file the FAFSA even if you just want access to the federal loan programs!
I've heard about Parent PLUS loans but wasn't sure how they worked. Do they have better rates than just getting a private loan? We're hoping to mostly cash flow college but might need some loans to fill gaps.
Parent PLUS loans currently have a 8.05% interest rate plus a ~4% origination fee. Private loans might offer better rates if you have excellent credit, but PLUS loans have more flexible repayment options and forgiveness possibilities in certain situations. Worth comparing both options once you know your actual costs.
Anyone else still traumatized from last year's FAFSA rollout? I'm having flashbacks to the months of glitches, calculation errors, and parents not being able to link their accounts properly. Really hoping they fixed all that for this cycle.
Friendly reminder for everyone: even though FAFSA opens October 1st, many schools have their own priority deadlines for financial aid. My son's university has a November 15th priority deadline for maximum aid consideration. Check your school's financial aid website for their specific dates!
My nephew just got his yesterday and he submitted on October 5th. My daughter submitted October 22nd so I guess we still have a wait ahead of us lol. What's weird is that my nephew's SAI was calculated completely different than last year - his expected contribution went up by $7,000 even though our family income only increased by about $3,000. Anyone else notice big changes in the calculation method?
Yes, they completely changed the formula this year! The FAFSA Simplification Act eliminated many of the previous deductions and changed how they calculate the Student Aid Index (formerly EFC). Some of the biggest changes include: 1. They no longer subtract state and local tax allowances 2. They changed how they treat multiple students in college 3. They adjusted the income protection allowance 4. They eliminated the small business/farm asset protection Most middle-income families are seeing higher SAI calculations, unfortunately. It's worth appealing directly to your college's financial aid office if the new SAI doesn't reflect your actual ability to pay.
Update: I called my son's college financial aid office this morning, and they told me they've extended their priority deadline to March 15th because of all the FAFSA delays! They also said they're seeing most applications take 4-5 weeks to process right now. So relieved to have a little more breathing room. Thanks everyone for your helpful comments!!
Financial aid office update: Most schools are handling this reprocessing situation by: 1. Extending May 1st deposit deadlines to May 15th for affected students 2. Prioritizing revised award letters for those students 3. Maintaining original award amounts in many cases, especially if the SAI change is minor 4. Only adjusting federal aid components if legally required I recommend accepting your best current offer but explaining to that school that your FAFSA is being reprocessed. Most institutions are being very understanding this year given all the FAFSA challenges.
Yes, now that your reprocessing is complete and your SAI decreased, you should: 1. Immediately contact all schools that previously provided aid packages 2. Let them know your SAI has decreased by $1,200 after the Department of Education's reprocessing 3. Ask if they'll recalculate your aid package based on the updated information 4. Request an update on timing for any revised offers With a $1,200 SAI decrease, you might see modest improvements in need-based aid at some schools. This could mean a few hundred dollars more in grants or subsidized loans, depending on each school's awarding policies. Based on conversations with other advisors, most schools are recalculating packages within 48-72 hours for reprocessed FAFSAs at this point. Good luck!
I just got off the phone with three schools. Two said they'll recalculate and get back to us by Friday. The third (her favorite) said they'd honor their original offer regardless of the change and extended our deposit deadline to May 10th! Such a relief. Thank you everyone for all the helpful advice during this stressful situation!
AstroAlpha
Quick update based on information released yesterday: The Department of Education has acknowledged this specific tax sharing bug and announced they'll be implementing a fix by June 5th. In the meantime, they've instructed all schools to use alternative documentation (like uploaded tax returns) for affected students. Have your son email his financial aid office specifically referencing the "Parent Contributor Tax Retrieval Error #FSA-2526" and request accommodation under the new guidance.
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Ava Rodriguez
•Thank you so much for this update! I hadn't seen anything about the official error code or June 5th fix. This gives me hope we might get this resolved before his housing deadline. I'll have him email the financial aid office with this specific reference code right away.
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Keisha Taylor
Has anyone figured out if this affects your SAI calculation? My daughter's finally went through after weeks of the tax glitch but her SAI seems way higher than expected based on our income...
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Zainab Ahmed
•The tax sharing bug shouldn't affect your SAI calculation once it's properly processed. However, there have been reports that the new FAFSA formula is calculating higher SAIs for many families compared to the old EFC system. If your SAI seems significantly off, you should request a professional judgment review from your daughter's financial aid office.
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