Mistakenly included retirement accounts in FAFSA - Can I fix $390k investment reporting error?

Don't panic! This is actually a common mistake, and yes, it can significantly impact your SAI (Student Aid Index) calculation. Retirement accounts like 401k and IRAs are explicitly excluded from FAFSA asset reporting. You can absolutely make this correction by logging into your studentaid.gov account, clicking on "My FAFSA," and selecting "Make FAFSA Corrections." Navigate to the financial information section and update the investment total to exclude retirement accounts. The correction typically takes 3-5 business days to process, and then schools will receive your updated information. I'd recommend also contacting the financial aid offices at each school your daughter applied to and letting them know you've submitted a correction. Most schools are used to handling these situations, especially during this transition to the new FAFSA.

omg i did the EXACT smae thing last yr!! put my whole 403b in there like an IDIOT. my son almost didnt go to college bc the aid offer was so bad. def fix it ASAP!!!

The financial aid system is DESIGNED to be confusing. They literally profit off people making these kinds of mistakes. I made a similar error and it cost my kid thousands in grants. The correction process is intentionally complicated so fewer people will do it. The whole FAFSA system is broken and favors families who can afford expensive college consultants who know all the tricks.

I had to call the Federal Student Aid office about a similar issue last month. Spent THREE DAYS trying to get through their phone system. Kept getting disconnected or waiting for hours. Finally found this service called Claimyr (claimyr.com) that holds your place in the phone line and calls you when an actual human picks up. Saved me so much time! They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ When I finally got through, the agent was able to verify my correction was processed correctly. I'd definitely recommend calling to make sure everything goes through properly with a change this important.

Just wondering - what types of investment accounts DO count for FAFSA? I'm filling mine out next week and don't want to make the same mistake. I have a 529 for my younger kid, some stocks in a brokerage account, and cash savings. Do those all count?

I went through this exact thing in January. Made the correction online but was still super worried so I also sent documentation to my kids' schools (statements showing the retirement accounts). Most schools were great about it, but one was a real pain and kept using the incorrect FAFSA info until I escalated to the financial aid director. If May 1 is your deadline, you need to be REALLY proactive about this. The correction alone might not be enough if it doesn't process quickly.

my cousin works in finaincal aid office and she says they see this ALL THE TIME. like literally every day. most ppl don't even catch the mistake! she says if you fix it and then call the schools they usually update everything no problem. its not like ur trying to cheat the system, its an honest mistake

Just to add some specific numbers to this discussion: a $390K difference in reported assets could change your SAI by approximately $22,000 using the federal methodology (about 5.64% of the additional assets). That's potentially significant for aid eligibility, especially at schools that closely follow federal formulas. But the impact varies dramatically depending on your income level. If your income is above certain thresholds, many schools will consider you non-need eligible regardless of the asset correction. If your income is moderate, this correction could make a substantial difference in grant eligibility. After making the correction online, I recommend: 1. Save/print confirmation of the correction 2. Email each school's financial aid office with your daughter's name, ID number, and a brief explanation 3. Follow up by phone in 7-10 days if you don't see updated aid packages 4. If a school seems reluctant to adjust, request a professional judgment review based on the corrected information Most importantly, don't assume the correction will automatically flow through the system perfectly - be proactive with each school.

I work as a financial aid advisor and see this mistake frequently - you're definitely not alone! The good news is that retirement account errors are among the easier corrections to make and schools are very familiar with handling them. A few practical tips from my experience: 1. When you make the online correction, take screenshots of each step and save the confirmation page 2. Create a simple one-page summary showing "Original FAFSA: $490K investments" and "Corrected FAFSA: $100K investments (retirement accounts excluded: $390K)" 3. Include this summary when you contact schools - it makes it crystal clear what changed For contacting schools, I'd recommend calling first to speak with a counselor, then follow up with email containing your documentation. Many offices are swamped right now, so being persistent (but polite) is key. Also worth noting: some schools have their own institutional aid forms or may use CSS Profile data, so make sure any retirement account errors are corrected across all forms your daughter's schools require. You caught this mistake, which puts you ahead of many families who never realize the error. With proactive follow-up, this should be completely fixable before decision deadlines!