FAFSA completely ignores housing costs - expected to pay $3600/month I don't have

Unfortunately, this is one of the biggest flaws in the FAFSA and SAI calculation. While it does have allowances for some expenses through the Income Protection Allowance, it doesn't directly account for regional housing cost differences or your actual mortgage/rent payments. What it does is applies a flat standard based on family size, which is woefully inadequate in high cost-of-living areas. You do have a few options though: 1. Appeal directly to the financial aid office with a detailed letter explaining your housing costs and why the SAI doesn't reflect your actual ability to pay. Include documentation of your mortgage and other necessary expenses. 2. Look into CSS Profile schools - while not all schools use it, the CSS Profile DOES consider housing costs more directly. 3. Consider a Parent PLUS loan to bridge the gap, though that comes with its own interest rates and fees to be cautious about. 4. Ask the financial aid office specifically about institutional aid that might be available for your situation.

ya its sucks i had the same prob last yr. ended up takin out private loans cuz the fasfa ppl said we made too much but they dont care that we live in cali where everything costs 3x more than other places. ur gonna prob need to get loans or have ur kid go to community college first thats what my sister did

The FAFSA is completely out of touch with reality! It's like the government thinks we're all living in 1980s economy with those housing costs. I went through this nightmare with both my kids. Had to refinance our house TWICE to pay for college. It's absolutely criminal what they expect middle class families to pay.

Financial aid counselor here. I see this situation frequently, and it's one of the most challenging aspects of our current financial aid system. The FAFSA's SAI (Student Aid Index) calculation uses federal methodology that applies the same standards nationwide, despite vast differences in cost of living. Two potential solutions to consider: 1. File a Professional Judgment appeal (sometimes called a Special Circumstances form) with your school's financial aid office. While they can't change the federal methodology, they have discretion to adjust your aid package based on documented special circumstances. High housing costs relative to income can sometimes qualify. 2. If your income in 2023 was unusually high compared to 2024, you might have grounds for an income adjustment appeal as well. For future reference, the FAFSA does have an "Asset Protection Allowance" that shields some of your assets from consideration, but it doesn't specifically account for housing costs in your specific market.

Have u tried calling the financial aid office directly? I was in a similar situation last yr and spent 3 DAYS trying to get through to someone at Federal Student Aid to explain my situation. Kept getting disconnected or waiting for hours. Finally used a service called Claimyr (claimyr.com) that got me connected to a FAFSA agent in under 20 mins. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent was able to note my file about our housing costs and directed me to specific forms for special circumstances. Didn't fix everything but got us about $5k more in aid after all was said and done. Worth a try at least.

There are several strategies for addressing this gap that other commenters haven't mentioned yet: 1. Look into tuition installment plans offered by the college - they don't charge interest and can help spread payments over 10-12 months 2. Have your student take a part-time job on campus (work-study if eligible) - this won't cover everything but can help with personal expenses 3. Check if your employer offers any education benefits for dependents 4. Search for external scholarships - even smaller ones of $1,000-$2,000 can add up 5. Consider having your student take some summer courses at a community college that will transfer back, potentially reducing time to graduation The FAFSA is unlikely to change its methodology anytime soon, so working around it is unfortunately necessary.

btw did anyone else notice fafsa is way worse this year with the new system?? the SAI number is like completely different from the old EFC and my brothers getting way less aid than i did even tho nothing changed with our family $$$

I've been working with college financing for 15+ years, and I'll share something most financial aid offices won't tell you directly: the system is DESIGNED to push middle-class families toward loans. The federal methodology assumes you have disposable income that can be redirected to education, regardless of your actual fixed expenses. My advice: 1. Be absolutely clear with your student about what you can afford - don't overextend financially 2. Run the numbers on whether this specific school's outcomes (graduation rates, job placement, average starting salaries in their major) justify the premium cost 3. Consider a 2+2 approach (2 years at community college + transfer for last 2 years) 4. Negotiate directly with the admissions office (not just financial aid) - sometimes they have discretionary scholarships for students they really want Remember: The most expensive school isn't necessarily the best education or the best investment.

if ur really stuck u could also considr having ur kid take a gap year and work to save $$ while u appeal the fasfa decision. my cousin did this and actually ended up getting better scholarships the next year cuz he had work experience

I'm going through the exact same nightmare right now with my daughter's FAFSA results. We live in Seattle where our mortgage is $2,800/month, but the FAFSA acts like we should have an extra $2,400/month lying around for college expenses. It's absolutely maddening that they don't factor in regional cost differences at all. What really gets me is that if we lived in a lower cost area with the same income, we'd qualify for significantly more aid. The system literally penalizes families for living in areas where jobs might pay more but housing costs eat up that difference entirely. I've been researching appeals processes too, and from what I've found, you really need to document EVERYTHING - mortgage statements, utility bills, local housing cost data compared to national averages. Some schools are more receptive to these appeals than others. Has anyone had actual success getting their SAI adjusted for housing costs specifically?

As someone new to navigating the financial aid process, this thread has been incredibly eye-opening about the challenges families face with FAFSA calculations. It's shocking to learn that the system doesn't account for regional housing costs - that seems like such a fundamental oversight when determining what families can actually afford to contribute. I'm curious about the Professional Judgment appeals that @Everett Tutum mentioned. For those who have gone through this process, how detailed does the documentation need to be? And is it something that needs to be done annually, or once it's approved does it carry forward for subsequent years? Also, @Tobias Lancaster, have you considered reaching out to your state's higher education agency? Some states have additional grant programs for residents that might help bridge gaps left by federal aid, especially for students pursuing high-demand fields like engineering. It might be worth checking if New Jersey has any programs that could supplement what you're receiving federally. The suggestion about community college for prerequisites is really smart - many engineering programs have very structured first two years that transfer well, and you'd still get the degree from his target school while saving significantly on costs.

I'm so sorry you're going through this - the FAFSA system really is broken when it comes to housing costs. I went through something similar with my oldest daughter two years ago. We live in the San Francisco Bay Area where our rent is $3,200/month, but FAFSA expected us to contribute $2,800/month for college. It felt completely insane. What ended up working for us was a combination of approaches: First, we filed a Professional Judgment appeal with detailed documentation of our housing costs compared to the national average. We included rental market data for our area and showed how much of our income was tied up in basic living expenses. The school didn't change our SAI, but they did offer additional institutional aid. Second, we negotiated a payment plan that spread costs over 12 months instead of per semester, which helped with cash flow even though the total amount stayed the same. Third, and this was key - we had my daughter start at our local community college for her general education requirements and transfer after two years. She's now at her dream school for her final two years in her major, will graduate with the same degree, but we saved about $45,000 in total costs. Don't give up on appeals, but also have backup plans ready. The system shouldn't work this way, but we have to work within it as it exists.

I'm really sorry you're dealing with this frustrating situation. The FAFSA's inability to account for regional housing costs is one of the most unfair aspects of the system. $3,600/month is an absolutely unrealistic expectation when you're already paying $2,200 for your mortgage! From reading through all the advice here, it sounds like you have several solid options to pursue: 1. Definitely file that Professional Judgment appeal with detailed documentation of your housing costs - even if they can't change your SAI, they might offer additional institutional aid like @Kyle Wallace experienced. 2. The 2+2 community college transfer route seems like it could save you tens of thousands while still getting your son the engineering degree from his preferred school. 3. Look into New Jersey state grants and programs - many states have additional aid that can help bridge the federal gap. 4. Consider that payment plan option to spread costs over 12 months for better cash flow. The system is absolutely broken, but don't lose hope. Your son's hard work and merit scholarships show he's talented, and there are ways to make this work financially without destroying your family's stability. The community college route especially makes sense for engineering since those foundational courses transfer well, and he'd still graduate with the same degree credential. You're not alone in this struggle - it's clear from this thread that middle-class families everywhere are facing the same impossible FAFSA calculations.

I'm really sorry you're going through this - the disconnect between FAFSA calculations and actual living costs is one of the most frustrating parts of the financial aid system. As a newcomer to this community, I've been reading through everyone's experiences and it's clear this is affecting so many families. One thing I wanted to add that I haven't seen mentioned yet - have you looked into whether your son's school participates in any income-driven payment plans specifically for institutional aid? Some schools are starting to offer these as alternatives to traditional payment structures, especially for families caught in that "too much income for aid, not enough for full pay" gap. Also, since he's interested in engineering, it might be worth checking if there are any employer partnerships or co-op programs that could help offset costs while giving him valuable work experience. Some engineering programs have relationships with companies that provide tuition assistance in exchange for internship commitments. The community college transfer route that others have mentioned really does seem like a smart financial strategy, especially for engineering where the first two years are heavily focused on math, physics, and general requirements that transfer easily. Your son would still get his degree from his target school but at a fraction of the cost. Hang in there - it sounds like you have a talented son and you're exploring all the right options to make this work without destroying your family's financial stability.

I'm new to this community but had to jump in because this thread really hits home. My family is going through the exact same FAFSA nightmare right now with my daughter who's looking at colleges next year. We live in Denver where housing costs have skyrocketed, but FAFSA acts like we're living in some fantasy world where rent doesn't exist. What really strikes me reading all these responses is how many practical solutions everyone has shared despite dealing with such a broken system. The Professional Judgment appeals, community college transfer routes, state grant programs, employer partnerships - I'm taking notes on all of this because we're going to need every single strategy mentioned here. It's both comforting and infuriating to see so many families struggling with the same issue. Comforting because we're not alone in feeling like the system is completely out of touch with reality, but infuriating because this clearly affects thousands of middle-class families who are just trying to give their kids an education without going bankrupt. @Tobias Lancaster - your situation with the $3,600/month expectation while paying a $2,200 mortgage is absolutely insane, but it sounds like you're getting some really solid advice here. The engineering community college transfer route seems especially smart since those foundational courses are so standardized. Wishing you and your son the best as you navigate this mess!

I'm new to this community but wanted to share my experience since I went through something very similar last year. We live in Massachusetts where our mortgage is $2,800/month, and FAFSA expected us to contribute $3,200/month for my daughter's college - it felt completely impossible and honestly made me question if I was doing something fundamentally wrong with our finances. What ended up helping us was a multi-pronged approach that several people have already mentioned here: 1. We filed a Professional Judgment appeal with extensive documentation - not just our mortgage, but comparative housing cost data for our area vs. national averages, utility costs, property taxes, everything. While they couldn't adjust our SAI, the school did offer an additional $4,000 in institutional grants. 2. We negotiated a 12-month payment plan instead of semester payments, which helped enormously with cash flow. 3. Most importantly, we had my daughter start at our local community college for her first year while living at home. She's transferring this fall to her original choice school as a sophomore, and we'll save about $28,000 total while she still gets her degree from the school she wanted. The system is absolutely broken when it comes to housing costs, but don't lose hope. There are ways to make it work without destroying your family's financial stability. Your son's engineering focus actually works in your favor for the community college route since those foundational math and science courses transfer seamlessly. Hang in there - you're definitely not alone in this struggle!