New parent confused about FAFSA - is it loans my daughter has to repay?

Welcome to the confusing world of financial aid! FAFSA (Free Application for Federal Student Aid) isn't a loan itself - it's the application that determines your daughter's eligibility for different types of federal aid. There are three main types of aid she might qualify for:\n\n1. Grants (free money!) like Pell Grants based on financial need\n2. Work-study opportunities at her college\n3. Federal student loans (these do need to be repaid)\n\nYour combined income will factor into her Student Aid Index (SAI), which determines how much need-based aid she qualifies for. Having multiple kids in college at once is actually considered in the FAFSA calculation and may help increase eligibility.\n\nOut-of-state schools will be more expensive since you'll pay non-resident tuition, but the federal aid process is the same regardless of which state the school is in. The big difference is you won't qualify for Illinois state-specific grants at out-of-state schools.

Thank you so much for the clear explanation! I had no idea there were grants available through FAFSA - that's encouraging. Do you know when we should fill this out? Her counselor mentioned something about applying in December for her freshman year next fall?

My daughter just went thru this whole process last year!!! FAFSA isn't just loans, it's the whole package of aid. But honestly with your income don't expect much in grants maybe. We make around $92k and only got loans offered, no free money 😡\n\nThe out of state thing KILLED us financially btw. In-state would have been wayyy cheaper. Like $15k difference per year!! Just warning you now before your kid falls in love with an expensive out of state school.

Oh that's disappointing to hear about the grants. Was the $15k difference after financial aid? My daughter is absolutely set on these out-of-state schools and I'm worried about crushing her dreams, but we definitely need to be realistic about costs.

Just to add some important info - the FAFSA is available starting December 1st for the 2025-2026 academic year. It's best to complete it as early as possible since some aid is first-come, first-served, especially at the state level.\n\nWith your income and multiple children heading to college, you might qualify for more than you expect. The FAFSA now uses a Student Aid Index (SAI) instead of the old EFC, and it gives more favorable treatment to families with multiple college students.\n\nAlso, don't forget that besides federal aid through FAFSA, many schools offer their own institutional scholarships and grants. Some out-of-state schools even offer tuition discounts to attract students from certain states or with specific academic profiles, even without perfect SAT scores or all AP classes.

The December 1 date is SUPER important! Last year our guidance counselor told us January and we missed out on like $5000 in state grants bc they ran out of money! First come first served is TRUE for a lot of the good stuff.

Your daughter should definitely explore schools in the Midwest Student Exchange Program if she's looking at Michigan or Wisconsin. Some public universities in those states offer reduced tuition for Illinois residents that's much less than their normal out-of-state rates. It's not as cheap as staying in-state, but it helps a lot.\n\nBTW, I spent 3 hours on hold with Federal Student Aid last week trying to fix an issue with our FAFSA verification. Finally used a service called Claimyr (claimyr.com) that held my place in line and called me back when an agent was about to answer. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ\n\nSaved me from going insane on hold music, and I actually got my issue resolved in one day instead of waiting weeks for an email response.

I had no idea about that Midwest exchange program thing!! Is there a website with the list of schools?? My son is also looking at Wisconsin schools from IL

Here's the link: https://msep.mhec.org/ - not all schools participate, but quite a few good ones do. You can search by state and see which institutions offer the discount!

Look im just gonna be real with u. FAFSA is a SCAM to get kids into debt. My niece got suckered into $30k of loans and shes working at starbucks now. unless ur kid is going into STEM or someting that pays well dont waste ur $$$. Most of these colleges are just money pits!!

That's not entirely accurate. FAFSA itself isn't a scam - it's just the application for aid. The problem is that college costs have risen dramatically while aid hasn't kept pace. Students need to be strategic about which schools they choose and what majors make financial sense. But skipping FAFSA altogether means missing out on potential grants and lower-interest federal loans if they're needed.

lol ok whatever u say but when these kids r drowning in debt for degrees that get them nowhere don't say I didn't warn u... college isn't worth what it used to be period.

To answer your original question more directly - the FAFSA itself is just an application form, not a loan. It unlocks access to:\n\n1. Federal Pell Grants (up to $7,395 for 2024-2025, likely to increase for 2025-2026)\n2. Federal Work-Study\n3. Federal Direct Loans (some subsidized, where government pays interest while in school)\n4. Federal Direct PLUS Loans (parent loans)\n\nWith your income level and multiple children approaching college age, you might qualify for some need-based aid. When you complete the FAFSA, you'll receive a Student Aid Index (SAI) which determines eligibility.\n\nDon't rule out merit aid completely - many schools offer scholarships for students with SATs in the 1200s, especially if her GPA is strong. Look for schools where her stats put her in the top 25% of applicants.

Thank you for the detailed breakdown! Her GPA is 3.85 unweighted, so maybe there's hope for some merit aid after all. I need to start researching which schools might be more generous with scholarships where her stats would stand out more.

Has anyone mentioned the CSS Profile yet??? Some private schools require BOTH the FAFSA and the CSS Profile for financial aid!!! We didn't know this until AFTER the deadline last year and it cost my son thousands in potential aid!!! The CSS Profile costs $25 to submit to first school and $16 for each additional school. Such a racket but it's required at a lot of private colleges.

Great point! The CSS Profile is used by about 200 mostly private colleges to distribute their institutional aid. It's more detailed than FAFSA and considers assets differently. Not all schools require it, but it's definitely worth checking each school's financial aid website to see if they require both forms.

did ur daughter consider community college for 2 years?? My daughter is doing that and transferring and it's saving us like $40,000!!! just saying... no reason to pay university prices for gen ed classes that transfer anyway

We've talked about it, but she's really set on the

She was upset at first but honestly now she's happy! She lives at home, saves money, works part-time and still has friends and activities at the CC. Plus she'll graduate with wayyy less debt. Win-win!

One final tip - when you fill out the FAFSA, make sure you list ALL schools your daughter is applying to. You can add up to 20 schools on the application, and all of them will receive her financial aid information. This lets you compare aid packages from different schools before making a final decision.\n\nAlso, don't be afraid to contact financial aid offices directly after you receive offers. If your circumstances change or if another school offers better aid, some institutions will match or improve their offers. They won't tell you this openly, but it's worth asking!

That's super helpful advice! I had no idea you could negotiate with financial aid offices. And the tip about listing all schools will save me from having to figure that out the hard way. Thanks so much!