How does FAFSA weigh income vs. assets, and will merit scholarship affect aid eligibility?

The new FAFSA formula (for 2025-2026) definitely weights income more heavily than assets. Your assets are only counted at a maximum of 5.64% in the calculation. So having $100k in investments would only increase your expected contribution by about $5,640 max. Income is analyzed on a sliding scale with protection allowances based on family size. As for the merit scholarship - it depends on the school's policy. Some schools practice "scholarship stacking" where merit + need aid can exceed the cost of attendance. Other schools follow a "meet full need" approach where they'll reduce need-based aid dollar-for-dollar against merit awards. You should definitely call the financial aid office at your daughter's school to ask about their specific policy on this.

Im in almost same situation!!! low income but saved up for yrs. My kid got 65k merit at private college but we still got 7k from fafsa on top of it. But my sisters kid got nothin extra with her merit $ so its defiently school specific!!!

Just to add some more detail on the FAFSA asset protection - there's also an Asset Protection Allowance based on the age of the oldest parent. For most families, this means about the first $10,000 of assets isn't even counted at all. Then the 5.64% rate applies after that threshold. Student assets are assessed at 20% with no protection allowance though, so keep that in mind if any investments are in your daughter's name.

If you're having trouble getting through to the financial aid office, I'd recommend using Claimyr to get connected right away instead of waiting on hold. I just used it last week to reach my daughter's financial aid office after trying for days. You can see how it works at https://youtu.be/TbC8dZQWYNQ and sign up at claimyr.com. They got me through to a live person in about 10 minutes when I had been trying for days.

THE WHOLE SYSTEM IS RIGGED AGAINST RESPONSIBLE FAMILIES WHO SAVE!!! We saved our whole lives instead of buying fancy cars and vacations, and now we're getting PUNISHED for it while families who spent everything get free money. And don't get me started on all these colleges with BILLION DOLLAR endowments still charging $80K a year!!! The whole system is completely BROKEN.

Your situation sounds really similar to ours last year! My son had a big merit scholarship too. The key thing to understand is whether the school meets "full demonstrated need" or has a "preferential packaging" policy. Schools that meet full need will take your FAFSA result and then make sure your total aid package (including merit) equals that amount. So if your total cost is $70k, and FAFSA says you can pay $30k, they'll ensure your total aid equals $40k. If $35k is already covered by merit, they'll add $5k in need-based aid. Schools with preferential packaging will often stack aid and let students receive both the full merit award AND the need-based aid. It's definitely worth asking the specific policy!

my cousin works in financial aid and she says private schools have way more flexibility than public ones. they can pretty much do whatever they want with their own money. call and be super nice to them, sometimes they have discretionary funds they can give you if you ask the right way. also some schools have special scholarships that arent advertised.

I want to clarify something about the FAFSA calculation that might help. Under the new FAFSA formula (SAI instead of EFC), here's the basic breakdown of how assets and income are treated: 1. Income: Assessed on a progressive scale. After allowances for taxes and basic living expenses, the rate ranges from 22% to 47% of available income depending on your income level. 2. Assets: Parents' assets are assessed at a maximum of 5.64% after the Asset Protection Allowance. So if your income is truly low as you mentioned, even with substantial assets, you should still qualify for significant aid. The formula is designed so that income plays a much larger role than assets in determining aid eligibility.

Congratulations on your daughter's amazing scholarship! That's such a huge accomplishment. I went through this exact situation two years ago with my son and can share what I learned. The key is understanding that schools handle merit + need-based aid combinations very differently. Some schools will "stack" aid where you can receive both the full merit award AND need-based aid up to the cost of attendance. Others follow a "financial aid first" approach where they see the merit scholarship as meeting part of your demonstrated need first, then add federal/institutional aid to cover the rest. The good news is that most schools are required to tell you their policy if you ask directly. When you call, ask specifically: "If a student receives merit aid, how does that affect their eligibility for need-based aid?" Some schools even have this information on their financial aid websites. One tip: if the school doesn't allow stacking, you might still be able to use the merit scholarship strategically. Sometimes you can ask them to apply the merit money to replace loans or work-study first, leaving grants intact. Worth asking about! The FAFSA delays have definitely made this year more stressful for everyone. Hang in there - you're doing great advocating for your daughter!

This is such valuable information from everyone! As someone new to navigating FAFSA, I'm learning so much from this thread. The breakdown of how assets vs income are weighted is really eye-opening - I had no idea that assets were only assessed at 5.64% max while income can be up to 47%. One thing I'm curious about - for families in similar situations with merit scholarships, how early in the process should you be having these conversations with financial aid offices? Should you wait until you get your official FAFSA results, or is it better to ask about their merit + need-based aid policies upfront when your student is still deciding between schools? Also, @Tate Jensen - have you considered reaching out to the financial aid office via email if phone calls aren't working? Sometimes they're more responsive to written questions, especially during busy periods like this.

Just wanted to jump in as someone who went through this exact scenario last year! My daughter received a $75K merit scholarship and we were in a similar boat with moderate assets but lower income. A few practical tips that helped us: 1. **Document everything** - When you do reach the financial aid office, take notes on who you spoke with and what they said. Policies can sometimes vary depending on who you talk to. 2. **Ask about professional judgment** - If your family has any unusual circumstances (like the disability you mentioned), financial aid officers have discretion to make adjustments to your FAFSA data. This could potentially increase your aid eligibility. 3. **Consider the CSS Profile schools** - If your daughter applied to any schools that require the CSS Profile in addition to FAFSA, be aware that these schools often have different (sometimes more generous) institutional aid policies. 4. **Timeline matters** - Even if the school allows aid stacking, there might be deadlines for need-based aid that are separate from merit scholarships. Make sure you're not missing any deadlines while waiting for FAFSA to process. The waiting and uncertainty is definitely the hardest part, but it sounds like you're asking all the right questions. Your daughter is lucky to have such an advocate! 🎓

This thread has been incredibly educational! As someone just starting the FAFSA journey with my youngest, I wanted to add one more perspective that might be helpful. For families wondering about the timing of asset reporting - remember that FAFSA uses a "snapshot" of your assets as of the day you file. So if you have any legitimate financial moves to make (like paying down debt or making planned purchases), the timing relative to your FAFSA filing can matter. Also, @Tate Jensen - regarding your question about the best time to call financial aid offices, I've had success calling right when they open (usually 8 AM) or during lunch hours when fewer parents are likely to be calling. Mid-week seems better than Mondays/Fridays too. One last thought - don't forget that some schools have their own institutional aid applications separate from FAFSA. These might have different deadlines and could offer additional opportunities for aid that stacks with both merit and federal need-based aid. Worth checking each school's financial aid website thoroughly! Best of luck to your daughter - an $80K merit scholarship is absolutely amazing! 🎉

Just wanted to add a perspective from someone who works in higher education (though not in financial aid directly). One thing I've noticed is that many families don't realize they can appeal their financial aid decisions even after they're made. If your daughter's school doesn't initially offer the aid stacking you're hoping for, you can often request a "financial aid review" or "special circumstances review." When making such requests, it's helpful to: - Explain any unique aspects of your financial situation (like the disability you mentioned) - Provide documentation of your family's financial circumstances - Be specific about what you're requesting and why - Remain professional and grateful for their time Also, don't overlook state aid programs! Many states have their own grant programs that can stack with both federal aid and merit scholarships. These often have different eligibility criteria than FAFSA and might be particularly helpful for families with your income/asset profile. The $80K merit scholarship your daughter earned is truly exceptional - that alone shows she's a student any college would be lucky to have. Use that as confidence when advocating for the best possible aid package! 💪

Welcome to the community! As someone who's been helping families navigate FAFSA for several years, I want to emphasize one important point that sometimes gets overlooked in these discussions: the timing of when you submit your FAFSA can impact your aid eligibility at some schools, even beyond the asset snapshot issue mentioned earlier. Many colleges distribute their institutional aid on a first-come, first-served basis, even if they don't explicitly state this. So while the FAFSA delays this year are frustrating, make sure to submit yours as soon as possible once it's available, and definitely before any school-specific deadlines. Also, regarding the merit scholarship question - I've seen families successfully negotiate "preferential packaging" even at schools that don't typically allow aid stacking. The key is often framing it as "comparing offers" rather than "requesting more aid." If your daughter has multiple college options, you can sometimes leverage that into better aid packages. One practical tip: create a spreadsheet tracking each school's financial aid policies, deadlines, and contact information. This year's delayed timeline means you'll likely be managing multiple moving pieces simultaneously, and staying organized will be crucial. Congratulations again on that amazing merit scholarship - that's truly something to be proud of! 🎉

As a newcomer to this community, I'm amazed by how helpful and detailed everyone's responses have been! This thread is exactly what I needed to read as I'm just starting to navigate FAFSA with my own child who will be applying to college next year. The breakdown of the 5.64% asset assessment vs the much higher income assessment rates is so clarifying - I had completely misunderstood how the formula worked and was worried our modest savings would hurt us more than they actually will. And learning about the Asset Protection Allowance means the first $10K isn't even counted! @Tate Jensen - your situation with the $80K merit scholarship and questions about aid stacking is giving me a roadmap for questions I'll need to ask when the time comes. The advice about calling schools directly to ask about their specific policies on merit + need-based aid combinations seems crucial. I'm definitely bookmarking this thread to reference later. The tips about timing calls to financial aid offices, creating spreadsheets to track different school policies, and even the appeals process are all things I never would have known to consider. Thank you to everyone who shared their experiences - this community is such a valuable resource for families trying to make sense of college financing! 🙏

As someone new to this community and just beginning to understand the FAFSA process, this thread has been incredibly enlightening! The detailed breakdown of how assets vs. income are weighted (5.64% vs up to 47%) completely changed my understanding - I had assumed savings would be much more detrimental to aid eligibility. @Tate Jensen - congratulations on your daughter's amazing $80K merit scholarship! That's such an incredible achievement. Reading about your situation has helped me understand the importance of researching each school's specific policy on aid stacking vs. meeting demonstrated need. It sounds like calling directly to ask "If a student receives merit aid, how does that affect their eligibility for need-based aid?" is the key question. The practical tips shared here are so valuable - from the best times to call financial aid offices (8 AM or lunch hours, mid-week) to the importance of documenting conversations and considering professional judgment reviews. I'm definitely going to create that tracking spreadsheet mentioned by @Zara Mirza to stay organized when my own child starts this process. Thank you to everyone who has shared their real-world experiences and expertise. This community is proving to be such an invaluable resource for navigating what can feel like an overwhelming process! 🙏

As a newcomer to this community, I'm incredibly grateful for all the detailed information shared in this thread! The breakdown of FAFSA asset vs income weighting has been so clarifying - I had no idea that assets are only assessed at a maximum of 5.64% while income can be assessed at rates up to 47%. This completely changes my understanding of how financial aid eligibility works. @Tate Jensen - huge congratulations to your daughter on that $80K merit scholarship! That's absolutely incredible. Your questions about aid stacking have been so helpful to follow, as I'm sure many families face this exact dilemma. The advice everyone has shared about calling schools directly to ask about their specific policies seems crucial. I'm particularly appreciating all the practical tips shared here - from the best times to call financial aid offices to the importance of creating tracking spreadsheets for different school policies. The suggestion about professional judgment reviews for special circumstances like disability is something I never would have known to consider. As someone just starting to navigate this process, this thread has given me such a better roadmap for what questions to ask and what to expect. Thank you to everyone who has shared their real-world experiences - this community is truly invaluable for families trying to make sense of college financing! 🙏

As a newcomer to this community, I'm blown away by the wealth of knowledge shared in this thread! The detailed explanations about FAFSA calculations have been so eye-opening. I had completely misunderstood how assets vs. income are weighted - learning that assets are capped at 5.64% assessment while income can go up to 47% really changes the whole picture for families like mine who have saved but have moderate incomes. @Tate Jensen - first off, congratulations to your daughter on that incredible $80K merit scholarship! What an amazing achievement. Your questions about aid stacking have been incredibly helpful to follow along with, as I suspect many families face this exact scenario. The advice from everyone about calling schools directly to ask about their specific policies on how merit scholarships interact with need-based aid seems absolutely crucial. I'm taking notes on all the practical tips shared here - the timing suggestions for calling financial aid offices (8 AM or lunch hours), the importance of documenting conversations, the appeals process, and even the professional judgment option for special circumstances. The suggestion to create a tracking spreadsheet for different school policies is brilliant and something I'll definitely implement. One thing that particularly resonated with me was the point about framing conversations as "comparing offers" rather than "requesting more aid" - that approach seems much more likely to get positive results. And learning about state aid programs as another potential source of stackable funding was something I hadn't even considered. This thread has given me such a clear roadmap for questions to ask and strategies to consider when my own family goes through this process. Thank you to everyone who has shared their real-world experiences and expertise - this community is truly invaluable for navigating the complexities of college financing! 🙏

As a newcomer to this community, I'm absolutely amazed by the depth of knowledge and real-world experience shared in this thread! The breakdown of FAFSA asset vs income weighting has been incredibly enlightening - I had no idea that assets are only assessed at 5.64% maximum while income can be assessed at rates up to 47%. This completely transforms my understanding of how aid eligibility actually works. @Tate Jensen - huge congratulations to your daughter on that phenomenal $80K merit scholarship! That's truly exceptional. Following your questions about aid stacking has been so educational, and I can tell you're asking all the right questions about how merit awards interact with need-based aid. The practical advice everyone has shared is invaluable - from optimal times to call financial aid offices (right at 8 AM or during lunch hours) to the importance of documenting every conversation. I'm definitely going to create that tracking spreadsheet mentioned by @Zara Mirza to stay organized when navigating this process myself. One insight that really resonated was the suggestion to frame discussions as "comparing offers" rather than "requesting more aid" - such a smart psychological approach that likely yields better results. And learning about professional judgment reviews for special circumstances and state aid programs as additional funding sources has opened my eyes to options I never knew existed. This thread has provided me with such a comprehensive roadmap for approaching financial aid strategically. Thank you to everyone who has generously shared their expertise and experiences - this community is proving to be an incredible resource for families navigating the complexities of college financing! 🙏

As a newcomer to this community, I'm incredibly grateful for the wealth of information in this thread! The breakdown of how FAFSA weighs assets vs income has been such an eye-opener - I had no idea assets are only assessed at 5.64% while income can be up to 47%. This completely changes my perspective on how savings actually impact aid eligibility. @Tate Jensen - congratulations on your daughter's amazing $80K merit scholarship! That's absolutely incredible. Your questions about aid stacking have been so helpful to follow, and it's clear you're advocating wonderfully for your daughter. The practical tips everyone has shared are invaluable - from the best times to call financial aid offices to creating tracking spreadsheets for different school policies. I'm particularly interested in the suggestion about professional judgment reviews for special circumstances, as that seems like an underutilized option many families might not know about. One thing I'm curious about - for families just starting this process, would you recommend reaching out to schools' financial aid offices with hypothetical questions before even applying, or is it better to wait until after acceptance? I want to understand aid policies early but don't want to seem presumptuous. This community is such an amazing resource for navigating what can feel like an overwhelming maze of financial aid rules and deadlines. Thank you all for sharing your real-world experiences! 🙏