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DOUBLE CHECK with your school's financial aid office! Each school has their own policies on how outside scholarships impact your aid package. Some schools will reduce loans first (good), others reduce grants first (bad). My daughter's school had a "displacement policy" that basically penalized her for getting outside scholarships by reducing institutional grants dollar-for-dollar. Total scam!
To summarize the correct information: 1. Scholarship money used for room & board is counted as the STUDENT'S income on the FAFSA, not the parents' income 2. The no-asset test (175% of poverty level) only looks at PARENT income, not student income 3. Student income is assessed separately through the Student Aid Index formula, where they get the income protection allowance (~$9,410) 4. Since this is for the 2024-25 academic year, this scholarship income would affect your 2026-27 FAFSA, not your 2025-26 FAFSA So you can focus on managing your own income/401k contributions without worrying about how your daughter's scholarship might push you over the asset reporting threshold - it won't.
not to go off topic but is anyone else having issues with the new FAFSA interface?? i cant figure out how to even START the application for my kids. the old version was way better imo
The new interface is definitely challenging. You need to create a StudentAid.gov account first, then find the FAFSA form under the Apply for Aid section. They changed the whole system for the 2024-2025 aid year, so many people are struggling with it. I recommend using a laptop/desktop rather than mobile - the mobile experience is even more difficult to navigate.
has anyone had experience with the dependency override for siblings raising siblings? my friend is basically raising her 3 younger siblings but the parents are technically still around just not involved at all. wondering if there's a way for the younger siblings to apply as independent without parent info?
Dependency overrides are handled case-by-case by each school's financial aid office, not directly through FAFSA. For situations like your friend's, the younger siblings would still need to complete the FAFSA listing their legal parents, but then immediately contact each school's financial aid office to request a dependency override. They'll need substantial documentation - court records, letters from professionals (teachers, counselors, clergy) who can verify the situation, and a detailed personal statement. It's a challenging process but absolutely possible in legitimate cases of parent abandonment or absence.
I'm having a similar issue but with Parent PLUS loans. My parents applied for me (I'm an undergrad) and the old FAFSA used to show how much they could borrow through Parent PLUS. Now there's nothing until the school processes everything. Does anyone know if there's a way to estimate what they'll be approved for? My parents need to know for budgeting since they're helping with my college costs.
Parent PLUS loans are technically available up to the cost of attendance minus any other aid received. However, PLUS loans do require a credit check, so approval isn't guaranteed. Your school's financial aid office can provide an estimate of your cost of attendance, and you can subtract any grants/scholarships and Direct loans you expect to receive to estimate the maximum PLUS eligibility. But final amounts will come from your school once they process your FAFSA.
UPDATE: I got my SAI score email today (took 5 days) and logged back into studentaid.gov. Still no specific loan amount mentioned, but I called my graduate financial aid office and they confirmed I'm still eligible for the full $29,500. They said the FAFSA change was intentional to emphasize grants over loans, but eligibility calculations haven't changed. So for anyone else confused by this - don't panic! Your loan eligibility is still there, they just don't show it prominently anymore. Thanks everyone for the help!
Also don't forget that the CSS Profile (which some private colleges require) is WAY more complicated for undocumented families than FAFSA... if any of your students are applying to private schools make sure you warn them about this extra form!!!
One practical solution that worked well at my previous school: We created a one-page reference sheet that listed exactly what documents parents should bring to FAFSA workshops (tax returns, W-2s, bank statements, etc.) along with FAQs about immigration status concerns. We translated it into multiple languages and sent it home 2 weeks before our workshops. This significantly increased both attendance and successful completion rates. Happy to share a template if that would help.
Natasha Petrova
have u tried logging in with ur kids info instead of urs? my nephew had this problem and for some reason when HE logged in (not his mom) he could edit everything fine even tho it was submitted. worth a try maybe?
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Connor O'Brien
•That's interesting! I've only been trying with my parent account. I'll ask my son to try logging in with his account tonight to see if he can access the edit options. Thanks for the suggestion!
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Connor O'Brien
UPDATE: So I tried multiple things based on everyone's suggestions. The midnight trick didn't work, neither did using my phone. HOWEVER - having my son log in with his own account DID show different options! He could see a button for "Correct or Update FAFSA" that wasn't visible in my parent view. Still got an error when trying to save changes though. I ended up using Claimyr like someone suggested, and got through to an agent in about 20 minutes instead of waiting for hours. The agent confirmed this is a known issue affecting "thousands of applications" and put in an override request. They said we should be able to edit the FAFSA in 2-3 business days. I've also emailed all the financial aid offices to let them know what's happening. Thank you everyone for all the help! This has been so stressful.
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