Is FAFSA worth completing for high-income families applying to private out-of-state schools?

Yes, you should absolutely complete the FAFSA even with higher income! Here are several important reasons why: 1. Many private schools require FAFSA for ALL institutional aid - including merit scholarships. They use it as part of their overall financial evaluation process. 2. Some private schools have much higher income thresholds for aid than you might expect - especially the elite ones with large endowments. Your income might seem high, but factors like multiple children in college simultaneously can significantly impact your SAI (Student Aid Index). 3. The FAFSA is required for unsubsidized federal student loans, which have better rates and terms than private loans, regardless of income. 4. If your financial situation changes during the academic year (job loss, medical issues, etc.), having a FAFSA on file makes it much easier to appeal for additional aid mid-year. Bottom line: completing the FAFSA keeps all options open and takes relatively little time compared to the potential benefits.

we didnt fill out fafsa last yr for my son cause we made too much $$ and then found out he couldnt get ANY scholarships at his private school without it!! had to rush and do it last minute, such a pain. just do it now save urself the headache later

ABSOLUTELY FILE THE FAFSA!! I've worked in college financial aid offices for over 20 years, and I can tell you with 100% certainty that many private institutions won't even CONSIDER students for merit scholarships without a FAFSA on file. It's used as an administrative tool for ALL types of aid packaging, not just need-based. Also, your income may be high, but the SAI calculation considers many factors beyond just income - number of dependents, age of parents (retirement proximity), other children in college, etc. I've seen families with incomes over $300K still qualify for some institutional aid at private colleges with high costs of attendance. At minimum, filing ensures access to the Federal Direct Unsubsidized Loan ($5,500 for freshmen) which has much better terms than any private loan alternatives. Don't make assumptions about aid eligibility! The 2025-2026 FAFSA has changed significantly and you might be surprised.

Something no one has mentioned - the CSS Profile! Many private colleges (including NYU and Boston University) require BOTH the FAFSA and the CSS Profile for ANY institutional aid. The CSS Profile is even more detailed than FAFSA and has a fee, but it's required by about 200 private colleges for their institutional aid programs. Since your daughter is looking at selective private universities, you'll likely need to complete both forms. Check each school's financial aid website for their specific requirements - some only need CSS for need-based aid while others require it for all institutional scholarships. Also, if your daughter is applying for outside private scholarships, many of those organizations also require FAFSA information as part of their selection process.

I was in exact same situation last year! Income around $400k, daughter applying to expensive private schools. I almost skipped FAFSA but our college counselor insisted we complete it. Turns out, three things made it worthwhile: 1. One school offered us a small institutional grant anyway because we had another child already in college 2. We qualified for unsubsidized federal loans which have MUCH better terms than private loans 3. Most importantly - my husband unexpectedly lost his job in February of her freshman year, and having the FAFSA already on file made the aid appeal process much faster My advice: spend the hour it takes to fill it out. The worst case is you wasted an hour. Best case, it opens doors to funding you didn't expect.

i sware some schools just use fafsa to see how much they can charge u... if u look rich they give u less merit $$ even if ur kid is super smart! its all a big scam if u ask me

I tried calling Federal Student Aid directly to ask this exact question last month and spent THREE HOURS on hold only to get disconnected! Then tried again and same thing happened. Finally found out about Claimyr.com which got me through to a real person in about 15 minutes. They have this callback service where you don't wait on hold. There's a video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent confirmed that yes, the FAFSA is still required for unsubsidized loans regardless of income AND many private schools use it for merit aid eligibility. Worth calling to ask about your specific situation!

One more important point - if you don't complete the FAFSA, your daughter won't be able to take advantage of the Federal Work-Study program, which can be a great way to earn money on campus with a job that works around her class schedule. Even if you don't need the money, these positions often provide valuable experience and connections.

As someone who went through this exact scenario two years ago with my twin daughters applying to similar schools, I can't stress enough how important it is to file the FAFSA! We're in a comparable income bracket and initially hesitated for the same reasons. Here's what we discovered: Both NYU and BU specifically state on their websites that FAFSA completion is required for consideration of ANY institutional aid, including merit scholarships. We actually called both admissions offices directly to confirm this. Even more importantly - having twins in college simultaneously dramatically changed our aid eligibility despite our high income. The FAFSA calculation considers multiple children in college as a major factor, and we ended up receiving some institutional grants we never expected. Also, don't underestimate the value of those federal unsubsidized loans. At current rates, they're significantly better than any private loan option, and the repayment flexibility is unmatched. The new FAFSA is actually simpler than the old version once you get started. It took me about 45 minutes per student, and that small time investment opened doors we didn't even know existed. Trust me - just do it!

I'm new to this whole process and honestly feeling overwhelmed by all the conflicting advice I've been getting from friends and family. Reading through everyone's responses here has been incredibly eye-opening! I had no idea that merit scholarships at private schools often require FAFSA completion - I thought "merit" meant it was purely based on grades/test scores without any financial component. The point about federal unsubsidized loans having better terms than private loans is something I hadn't considered either. Even if we can afford to pay full tuition, having access to lower-interest borrowing options could be valuable for cash flow management or unexpected situations. One question I have after reading all this: for those who've been through the process, roughly how long did the new FAFSA actually take to complete? I keep hearing it's "simpler" but also more "complicated" depending on who's talking. I'm trying to set realistic expectations for the time commitment involved. Also, is there a specific deadline I should be aware of for the 2025-2026 academic year? I want to make sure I don't miss any important cutoff dates while I'm still deciding whether to complete it.

I appreciate everyone sharing their experiences here - this thread has been incredibly helpful! As a financial advisor who works with many families in similar situations, I wanted to add a few additional perspectives: 1. **Portfolio diversification benefits**: Even if you can afford full tuition from savings/income, using federal loans strategically can allow you to keep more of your investments working in the market rather than liquidating assets during potentially unfavorable market conditions. 2. **Tax considerations**: The American Opportunity Tax Credit (up to $2,500/year) has income phase-outs, but if your daughter takes even minimal federal loans, the student loan interest deduction might provide some tax benefits depending on your specific situation. 3. **Credit building**: Federal student loans in your daughter's name can help establish her credit history responsibly, which will be valuable when she graduates and needs to rent apartments, get car loans, etc. The key point everyone's made about keeping options open really can't be overstated. I've had clients whose circumstances changed dramatically during their child's college years - everything from job loss to unexpected medical expenses to market downturns. Having the FAFSA filed provides flexibility you might not think you need now but could be crucial later. The time investment truly is minimal compared to the potential benefits and peace of mind!

Just wanted to chime in as another parent who was initially hesitant about filing the FAFSA for similar reasons! We have a household income around $280k and thought there was no point, but our college counselor insisted we do it anyway. I'm so glad we listened! Our son ended up at a private liberal arts college that required FAFSA for ALL institutional scholarships - even their "pure merit" awards. Without it, he would have been automatically excluded from a $15k/year scholarship that had nothing to do with financial need. Also, something I learned the hard way: even if your income seems "too high," private colleges with large endowments sometimes have surprisingly generous aid policies. Schools like Harvard, Yale, and Princeton have eliminated parent contributions for families earning under $200k, and provide significant aid even up to $300k+ in some cases. Your target schools might have similar policies you're not aware of. The federal loan access alone makes it worthwhile - those interest rates and repayment terms are far superior to any private loan options. Plus, if anything unexpected happens (job loss, medical issues, market crash affecting your investments), you'll be so grateful to have that FAFSA already on file for emergency aid appeals. Bottom line: it's maybe an hour of your time for potentially thousands of dollars in benefits. The risk/reward ratio heavily favors just doing it!

As a newcomer to this community, I have to say this thread has been incredibly enlightening! I'm in a similar situation with my son who will be applying to colleges next year, and I was completely unaware of how interconnected the FAFSA is with merit scholarships at private institutions. Reading through everyone's experiences, a few things really stand out to me: 1. The consistent theme that private schools use FAFSA for ALL institutional aid packaging, not just need-based aid 2. How federal unsubsidized loans offer significantly better terms than private alternatives, regardless of family income 3. The importance of having the FAFSA on file for unexpected life changes during the college years What I find most valuable is hearing from parents like @Dmitry Popov and @Freya Thomsen who shared specific dollar amounts and real outcomes - it really helps put this in perspective beyond just theoretical advice. One follow-up question for the group: Are there any common mistakes families make when completing the FAFSA that could hurt their aid eligibility? I want to make sure I don't inadvertently mess something up if I'm going to invest the time in doing this properly. Thank you all for sharing your knowledge and experiences - this community is such a valuable resource for navigating this complex process!

As someone who just went through this process with my daughter (she's now a freshman at a private university), I want to echo what everyone else is saying - absolutely complete the FAFSA! We were in a similar income bracket and almost skipped it, but I'm so grateful we didn't. Here's what happened: even though we didn't qualify for traditional need-based aid, her school used the FAFSA data to automatically consider her for several institutional scholarships we didn't even know existed. She ended up receiving a $12,000/year "leadership scholarship" that required FAFSA completion even though the selection criteria were entirely merit-based. The other game-changer was the unsubsidized federal loans. We took out the maximum $5,500 her freshman year not because we needed it immediately, but because the interest rate (currently around 5.5%) was so much better than any private loan options, and it gave us flexibility with cash flow. One tip: start gathering your financial documents now (tax returns, bank statements, investment accounts). The actual FAFSA form is much more streamlined than it used to be, but having all your paperwork organized beforehand makes the process much smoother. The bottom line is that completing the FAFSA keeps doors open that you might not even realize exist. For less than an hour of work, it's absolutely worth it!

As a newcomer to this community and the college financial aid process, I want to thank everyone for sharing such detailed and helpful experiences! This thread has completely changed my perspective on the FAFSA. I'm in a very similar situation - household income around $320k, daughter looking at competitive private schools, and I was initially planning to skip the FAFSA because I assumed we wouldn't qualify for anything. But after reading through all these responses, especially the specific examples from @Dmitry Popov, @Freya Thomsen, and @Liam O'Donnell about receiving unexpected institutional aid, I'm convinced it's worth doing. The point that really resonates with me is what @Dylan Wright mentioned about keeping options open in case circumstances change unexpectedly during the college years. None of us can predict what might happen with jobs, health, or market conditions over the next four years. I also had no idea that federal unsubsidized loans require FAFSA completion and offer significantly better terms than private loans. That alone seems to justify the time investment, even if we don't end up needing the funds immediately. One quick question for the group: For those who've completed the new FAFSA recently, do you recommend doing it as early as possible in the cycle, or does timing not matter much for families in higher income brackets? I want to make sure I don't miss any institutional aid deadlines while still allowing time to gather all the necessary documents properly. Thanks again for such a welcoming and informative community!