FAFSA skipped asset questions after marking Medicaid - Covid exception issue

This is a common issue! The Medicaid question is part of the Student Aid Index (SAI) qualification for the simplified needs test. If you answer yes to any of the federal benefits questions AND your income is below $60,000, the FAFSA will skip asset questions because your assets aren't considered in the calculation. The key here is whether your family ACTUALLY received Medicaid during the tax year in question - not whether you should have qualified under normal rules. If your children were legitimately enrolled in Medicaid during 2023 (regardless of why), then answering 'yes' is correct.

The FASA system is so BROKEN!! Same exact thing happened to me last year and we ended up getting FLAGGED for verification because the financial aid office noticed the discrepancy in our income vs. benefits. Took MONTHS to resolve and almost missed the scholarship deadlines. The whole system is just designed to trip up parents who are trying to be honest. Makes me so mad!!!

The simplified needs test has specific requirements - your family must have an AGI below $60,000 AND received one of the qualified federal benefits. If your income was above that threshold, but you still truthfully received Medicaid (even under special Covid rules), you should actually select "no" for that question because the question is really asking "Do you qualify for the simplified formula?" not just "Did you receive benefits?" The Department of Education actually updated guidance on this because of Covid Medicaid extensions. You should answer based on whether you would have qualified for Medicaid under normal circumstances, not the emergency provisions.

we had literally the exact same issue!!! our twins were on CHIP which is like medicaid but for families with slightly higher incomes, and i answered yes. after submitting i realized it never asked about our rental property. i was freaking OUT thinking i was gonna go to jail for fafsa fraud lol. anyway i called and they told me i could make a correction after submission. the lady said its super common mistake.

If you try calling Federal Student Aid to ask about this, prepare to be on hold FOREVER. I tried for two days last month about a similar question and never got through. Eventually used a service called Claimyr (claimyr.com) that got me connected to an agent in about 20 minutes. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The FSA agent I spoke with said that for the Medicaid question, what matters is if you actually received the benefit during the tax year, regardless of special circumstances. But she also mentioned that if your income is above the threshold, you should be seeing the asset questions regardless.

Ugh I am having the opposite problem! We DID qualify for SNAP for part of last year, I answered YES, but the stupid system is STILL asking for all our assets which are literally just a checking account with like $2300 and an old 401k. The whole FAFSA redesign is a complete disaster.

To answer your follow-up question - since your income was $87,000, which is above the $60,000 threshold, the system should definitely be asking about your assets regardless of the Medicaid answer. This sounds like a technical glitch in the new FAFSA system. I recommend: 1. Take screenshots of the submission process showing the questions were skipped 2. Complete and submit the form as the system allows 3. After submission, use the correction feature to verify your answers 4. Contact your daughter's financial aid office to explain the situation Most importantly, document everything. The new FAFSA system has had numerous technical issues this year, and financial aid offices are aware of these problems. They'll likely work with you to ensure all information is correctly recorded.

One more important point: changing your answer to "no" on the Medicaid question is the technically correct approach, but be prepared for a possible verification request regardless. This new FAFSA system has been flagging applications with corrections at a higher rate. However, verification is not an audit - it's just a standard process to confirm information. If selected for verification, you'll simply need to provide documentation supporting your answers. The financial aid office will guide you through this process. Keep records of your tax returns, W-2s, and any documentation showing when your children were disenrolled from Medicaid.

i think i saw somewhere that for the 2025-2026 FAFSA they actually increased the simplified needs threshold to $75k? but i might be wrong lol. financial aid is so confusing!!!

I'm new to this whole FAFSA process and reading through everyone's experiences is both helpful and terrifying! My daughter is a junior so we'll be doing this next year. Can someone explain what happens if you DO get selected for verification? Like, what documents do they typically ask for and how long does the process usually take? I want to be prepared since it seems like the new system is flagging more applications than before.