FAFSA strategy for high-income family with poor credit - rising senior needs options

Been there! Your income is high but ur not actually swimming in cash. We were in almost identical situation last year. Have him apply to ALL the state schools and compare aid packages. Some give better institutional scholarships than others even with the same stats. Also, make sure when filling out FAFSA you time it right after taxes but INCLUDE any retirement contributions and health insurance premiums to lower your AGI. That helped us a bit.

Financial aid advisor here - a few important points that might help your situation: 1. While Parent PLUS loans require credit checks, your son can qualify for additional unsubsidized federal student loans if you're denied for PLUS loans due to adverse credit history. This is an important provision many families don't know about. 2. When completing the FAFSA for 2025-2026, your SAI (Student Aid Index) will be calculated using your 2023 tax information. If your income has changed significantly since then, you can request a professional judgment review at each financial aid office after receiving initial offers. 3. For state schools, look into tuition installment plans which break payments into manageable chunks without requiring credit checks. 4. Have your son focus scholarship applications on local organizations, businesses, and community foundations. These often have fewer applicants than national scholarships. 5. Consider having your son start at a community college for prerequisites, then transfer. Many state universities have guaranteed transfer agreements.

just wanted to share, this was us 2 years ago!!! EXACT same boat. what we did: son took gap year, worked full time at amazon warehouse (surprisingly good $$$), applied for every departmental scholarship at his chosen school, and we managed to fix credit enough to get a small parent plus loan. also he's doing work-study program now which helps. your not alone in this financial aid hole!!!!

To answer your question about the additional unsubsidized loans - yes, there are limits. If you're denied for PLUS loans, your son would be eligible for additional unsubsidized loans up to the independent student annual limit, which is currently $7,500 for juniors and seniors (compared to $5,500 for dependent students). So that's an extra $2,000 per year in federal loans. Another option worth exploring is having your son consider the schools' payment plans, which typically divide tuition into 10-12 monthly payments and don't require credit checks.

Has your son considered the military? ROTC scholarships can cover full tuition at many state schools, and the commitment after graduation isn't as bad as people think. My daughter is doing Army ROTC and it's been a great experience - they're covering full tuition and books, plus a small stipend. Something to think about if he's open to it.

Have you tried calling the Federal Student Aid office to discuss options for your specific situation? I was in a similar boat (good income but terrible credit) and was able to get special circumstance consideration after speaking with someone. Getting through on the phone is impossible though - I spent DAYS trying. I finally used Claimyr (claimyr.com) and got through in about 20 minutes. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The FSA agent walked me through the Parent PLUS loan denial process and helped me understand exactly what additional loan amounts my daughter would qualify for. They also explained some state-specific aid programs I didn't know about. Worth the call to get accurate information for your specific case.

THE FAFSA SYSTEM IS COMPLETELY BROKEN!!!! My husband and I make $160k combined but live in a high cost area, and we couldn't qualify for ANY need-based aid. But we also got denied for Parent PLUS due to an old foreclosure. Then our son only qualified for $5,500 in federal loans per year. STATE SCHOOLS WANTED $28K/YEAR!!!! WHERE IS THAT SUPPOSED TO COME FROM???? The financial aid system assumes if you make decent money, you either have perfect credit or $100k sitting in a bank account. It's RIDICULOUS!

One more important strategy to consider: your son should contact the financial aid offices directly at each school he's considering. Explain your specific situation (income level but credit challenges) and ask about institutional scholarships or grants that might not be automatically awarded through the FAFSA process. Many state schools have discretionary funds and institutional aid they can allocate in special circumstances. Sometimes having a conversation directly with a financial aid officer can unlock options that aren't apparent from just submitting the FAFSA. Be polite but persistent, and don't be afraid to negotiate after receiving initial offers, especially if he receives better offers from competing schools.

have u looked at ur sons SAI number on the FAFSA? that will tell u exactly what theyr expecting u to pay. might be scary but at least u know whats coming

one thing nobody mentioned - check if your state has a 529 plan with tax deductions. even if u start one NOW, u can get state tax benefits while saving for next year. we put in like $8k last year and our state gives tax deduction for it. every little bit helps