FAFSA approved Pell Grant without 2022 tax returns - will it affect Parent PLUS loan?

same thing happened with my son!!! no 2022 taxes but got full pell. but then we DID get parent plus loan approved sooo maybe its something else with ur credit?

The tax filing and FAFSA approval process can be confusing, but I can explain what's happening here. For the 2024-2025 FAFSA, they're using what's called the SAI (Student Aid Index) which can sometimes qualify students for maximum Pell Grants based on other financial indicators besides tax returns. However, the Parent PLUS loan denial is almost certainly unrelated to your unfiled taxes. PLUS loans are credit-based, and approvals depend on not having adverse credit history (like defaults, bankruptcies, foreclosures, or 90+ day delinquencies). You should still file your 2022 taxes though, because the Department of Education can select your application for verification at any point, and if you can't provide the required documentation, your daughter might have to return the Pell Grant funds.

Yes, if your FAFSA is selected for verification and you cannot provide the required documentation (including tax transcripts), the financial aid can be revoked, even retroactively. Schools are required to verify about a third of all FAFSA applications.

The whole system is COMPLETELY BROKEN! My daughter's friend got ZERO financial aid even though her parents filed taxes on time, while others who didn't file get full Pell Grants?! Make it make sense! The FAFSA is just a complicated mess designed to frustrate hard-working families. They DELIBERATELY make it confusing so fewer people get aid. I spent HOURS on hold trying to get someone to explain our SAI calculation and got disconnected THREE TIMES!!!

Hey! Financial aid counselor here. The reason you got the Pell Grant without taxes is that the 2024-2025 FAFSA is using a new formula and process. For very low-income applicants, the system can sometimes auto-qualify you for maximum Pell based on other factors like receiving certain federal benefits, having a zero EFC under old rules, or other financial indicators. But here's the critical part: if you're selected for verification (which happens to about 30% of applications), you MUST provide the tax documentation or risk losing all aid. Parent PLUS loan denials are almost always credit-related, not tax-filing related. My advice: File those taxes immediately. The verification process can start at any point in the academic year, and if you're selected and can't provide documents, your daughter could lose the funding mid-semester.

The same exact thing happened to me but its cause i get disability and food stamps so they automatically gave my kid full pell grant. u prob get some kind of government benefits too right? But yeah the parent plus loan is all about ur credit score not taxes

u should DEF file those taxes ASAP!!! my cousin got the pell grant and then they did that verification thing 6 months later and she had to pay back ALL THE MONEY because her dad hadn't filed taxes or something. it was a nightmare for her!!

To answer your question about future aid: Yes, issues with verification can affect future aid eligibility. If a student has to return funds due to verification problems, they may be flagged in the system, which can delay or complicate future aid processing. It can also potentially affect Satisfactory Academic Progress requirements if the financial adjustments impact enrollment status. This is why it's crucial to maintain accurate and complete financial documentation for the entire period you're receiving aid.