FAFSA shows high 2023 AGI but I'm retiring - options besides appeal?

you gotta wait til after you submit 😑 my dad went thru exact same thing last year. its called a "professional judgment appeal" and you cant do it til after FAFSA is processed. total pain in the a**

For the 2025-2026 application cycle, yes, you'll need to go through the appeal process (officially called a Professional Judgment review). This is because the FAFSA uses prior-prior year tax information, so your 2023 tax return will be the basis for the 2025-2026 aid year. However, for the 2024-2025 FAFSA, you'll be using your 2022 tax information, which I assume was also from before retirement? If that's the case, you'll need to complete the FAFSA with that information, then immediately contact your daughter's financial aid office about a Professional Judgment review based on your retirement/income reduction. The good news is that retirement is one of the most commonly approved reasons for income adjustment appeals. Be prepared with documentation showing: - Your retirement date (letter from employer) - Last full-year tax return - Documentation of current/expected retirement income - Estimates of any pension/Social Security benefits

I went through something similar! The whole system is designed to make us miserable! When I retired, my income dropped like 65% but the FAFSA still wanted to pretend I was making my old salary. I had to fight with the financial aid office FOR MONTHS and they kept asking for more and more documentation. Finally got approved but my daughter missed out on some scholarships because it took so long. Start the appeal process THE SECOND you can. Don't wait.

Each college handles Professional Judgment appeals differently. Here's what you need to know: 1. For the 2025-2026 FAFSA: Your 2023 income will be used, so after submitting the FAFSA, contact EACH school's financial aid office individually about their appeal process. There is no standard federal form. 2. For the 2024-2025 FAFSA: Same situation with your 2022 income, but you can start the appeal process as soon as you submit the FAFSA. Pro tip: Document everything now. Create a "financial change packet" with your retirement letter, benefits statements, and projected income spreadsheet. Make multiple copies - you'll need to submit separate appeals to each school. Also, your SAI (Student Aid Index, formerly EFC) will be recalculated based on your retirement income, which should significantly improve aid eligibility. Just be prepared for different decisions from different schools - some are more generous with adjustments than others.

I tried calling the Federal Student Aid helpline about this exact issue last month when my husband retired. Got disconnected THREE TIMES after waiting on hold for over an hour each time. Complete nightmare. Finally used Claimyr.com to get through - they connect you directly to an agent without the wait. They have a video demo at https://youtu.be/TbC8dZQWYNQ that shows how it works. The FSA agent confirmed what others are saying - you have to file the FAFSA first, then go through each school's special circumstances process.

my brother went thru this and didn't get approved for the appeal. they said his retirement was "voluntary" so they wouldn't adjust the income. depends on the school i think

Just an FYI - my wife and I retired last year and went through this whole process. Here's what to expect: 1. The FAFSA itself has NO mechanism to report income changes. None. You must use your tax return data from 2023. 2. Most schools had us fill out a "Special Circumstances" form plus provide documentation of our retirement and new income level. 3. Timeline-wise, we submitted the FAFSA in October, immediately contacted schools about the income change, submitted all documentation by December, and most schools adjusted our daughter's aid packages before the regular April decision letters went out. A couple schools made us wait until May for adjusted packages. 4. One school refused to adjust at all, claiming our retirement assets offset the income reduction (completely unfair, but they wouldn't budge). 5. Start gathering: last pay stubs, retirement letter, pension statements, Social Security estimates, current bank/investment statements. Good luck! It's a frustrating process but worth fighting for.

One thing I haven't seen mentioned yet - if you're retiring in 3 months, you might want to consider delaying your FAFSA submission until early 2025 if possible. While the "prior-prior year" rule means you'll still use 2023 tax data, being able to show you're already retired when you submit might strengthen your appeal case with financial aid officers. Also, document EVERYTHING about your retirement transition - separation agreements, final pay dates, benefit election forms, etc. I've heard some schools are more receptive to appeals when they can see the retirement was planned/structured rather than just a sudden decision. The more official documentation you have, the better your chances of getting approved quickly. Start reaching out to financial aid offices at your daughter's target schools NOW to ask about their specific appeal processes and timelines. Some schools are way more generous with professional judgment than others, and this could actually influence where she applies or chooses to attend.