FAFSA SAI jumped from 30,000 to 87,000 for both kids in college - what happened?

The new FAFSA is COMPLETELY BROKEN!!! I've heard dozens of similar stories from other parents in my Facebook groups. The formula changed dramatically with the FAFSA Simplification Act and it's screwing over middle-class families like yours. They're now counting retirement assets differently and the multiple-student discount got slashed. It's NOT your mistake - it's the government changing the rules without properly explaining it to families. My daughter's SAI went up by $25K this year and we're in the EXACT same financial situation!

yeah this is happening to everyone. my cousin works in financial aid and she says they're getting bombarded with calls about this exact problem. the new formula is WAY more harsh on families with multiple kids in college

This is definitely related to the FAFSA Simplification Act changes. The biggest impact for families with multiple children in college is that the "sibling discount" was dramatically reduced. Previously, having two students in college roughly cut your Expected Family Contribution (now called SAI) in half for each student. Under the new formula, the reduction is much smaller. Other factors that might be affecting your SAI: 1. Changes to how retirement assets and small businesses are assessed 2. Different treatment of untaxed income 3. Adjustments to the income protection allowance 4. Changes in how home equity is considered I'd recommend you: - Request a professional judgment review from both schools' financial aid offices - Specifically mention if you had any unusual expenses (medical bills, job loss, etc.) - Compare your 2023 tax return (used for this FAFSA) with your 2022 return (used for last year's) to spot any differences The formula changes were implemented to simplify the process but have resulted in some dramatic shifts in aid eligibility.

We had the exact opposite happen! Our SAI dropped from 42,000 to 18,000 with the new formula, and we have only one child in college. I think the new formula really benefits families with just one student but hurts those with multiple kids. Have you tried running the numbers through the Federal Student Aid Estimator tool to see if you get the same result? Sometimes there can be technical glitches in the actual FAFSA submission.

I work in financial aid at a university, and I can explain what's happening. The FAFSA Simplification Act made several major changes to how the SAI is calculated, but the most significant impact for your situation is the change to the multiple-student benefit. In the old system, having multiple children in college would essentially divide your EFC by the number of students. So if your EFC was 30,000 with one child, it would become approximately 15,000 each with two children. The new formula significantly reduces this benefit. Now, instead of dividing the contribution, there's a much smaller adjustment factor. This is why many families with multiple students are seeing dramatic increases. I strongly recommend you contact both schools' financial aid offices and request a professional judgment review. Bring documentation of any special circumstances (medical expenses, job loss, etc.) that might help your case. While they can't change the federal formula, they have some discretion with institutional aid.

Have you tried calling the Federal Student Aid Information Center directly to ask about this? I spent TWO WEEKS trying to get through to someone to explain a similar situation with my daughter's SAI calculation (ours went up by 40k!). The wait times are absolutely insane - I kept getting disconnected after waiting for 2+ hours. I finally used Claimyr (claimyr.com) to get through to an actual person at FSA. Their service held my place in line and called me when an agent was available. Saved me hours of frustration. There's a video showing how it works: https://youtu.be/TbC8dZQWYNQ The FSA agent was able to explain exactly which parts of the formula had changed for us and confirmed it wasn't an error in our submission. At least knowing WHY it happened helped us plan our next steps with the schools.

When my son's SAI came back really high, we found out we'd accidentally reported our retirement accounts as cash assets! Double-check all your entries, esp on that assets page. The new form is really confusing about which assets count and which don't. Maybe you accidentally included something that should've been excluded?

Based on what others have shared, it sounds like the multiple students in college change is the culprit. My suggestion is to look into alternative funding sources now to be prepared. Have your students check for departmental scholarships at their schools - many aren't widely advertised but can be substantial. Also, some schools have emergency aid funds for situations like this where aid unexpectedly decreases. Don't wait until fall to start making these inquiries!

After you verify all your information was entered correctly, I recommend taking these steps: 1. Prepare a well-documented appeal letter for both financial aid offices explaining your situation 2. Include a side-by-side comparison of your financial information from last year and this year to demonstrate consistency 3. Calculate exactly how much additional burden this places on your family budget 4. Request a meeting with a financial aid counselor (not just a front desk staff member) 5. Ask specifically about supplemental institutional grants to offset the federal formula changes Many colleges anticipated these issues and have set aside additional institutional funds to help families caught in this situation. But you need to be proactive and specific in your requests.

I'm so sorry you're dealing with this - it's incredibly stressful when aid packages change so dramatically without warning. Based on what everyone has shared here, it really does sound like the reduced sibling discount from the FAFSA Simplification Act is the main culprit for your SAI jump. One thing I'd add to the excellent advice already given: when you contact the financial aid offices, ask specifically if they have any institutional aid programs designed to help families affected by the new FAFSA formula changes. Some schools have quietly created "transition funds" or adjusted their own aid formulas to partially offset the federal changes, especially for continuing students who were counting on similar aid levels. Also, if either of your kids has strong academic performance, this might be a good time to ask about merit-based aid that wasn't previously offered. Sometimes when need-based aid decreases, schools can find merit awards to help bridge the gap. Document everything from your conversations with financial aid offices - names, dates, what was discussed. If one school offers more help than the other, you can sometimes use that information to advocate for similar treatment at the second school. Hang in there - you're definitely not alone in this situation, and there are still options to explore!