Planning ahead for FAFSA as parents of a high school junior - what should we know?

You're smart to start preparing early! For the 2025-2026 FAFSA, you'll need your 2023 tax returns and W-2s. The new FAFSA uses what's called the Student Aid Index (SAI) instead of the old Expected Family Contribution (EFC). It calculates differently now, focusing more on your taxable income and less on assets. Start by creating FSA IDs for both you, your spouse, and your son at studentaid.gov. This alone can take some time to process. Then gather your 2023 tax documents, know your asset values (excluding your primary home and retirement), and understand your monthly obligations. One thing many parents don't realize is that the money in your son's name (if in a traditional savings account) counts more heavily against aid than parental assets. FAFSA assesses parent assets at about 5-6% while student assets are assessed at 20%.

my daughter jsut grduated and we did fafsa last year. its confusing for sure!!! make sure u start the application early bc the website crashes ALOT. we had to try like 5 times to finish it. the worst part was the the parent signature part at the end where we had to link with the irs or something? idk it was a mess.

The 529 plan will still be counted as a parental asset as long as the parent is the owner (with student as beneficiary), which is much better than being counted as a student asset. This is one of the few remaining planning opportunities with the new FAFSA. Regarding what you can do now: honestly, for the 2025-2026 FAFSA, not much since it will use your 2023 tax information which is already done. The new FAFSA formula eliminated most of the prior planning strategies like moving money around before application. But there are still some things to consider: 1. Don't withdraw from retirement accounts before or during college years if possible (this can increase your income). 2. Be careful about realizing capital gains during college years. 3. If you're considering any major financial changes (selling property, changing jobs), think about how that might affect income during the college years. 4. Look beyond just the FAFSA - many private colleges require the CSS Profile too, which asks for more detailed financial information. And one thing most people don't realize: your SAI score can change each year depending on your income changes, so planning should be for the full four years of college.

Yes, rental income must be reported on the FAFSA if it's reported on your tax return (which it should be). It becomes part of your Adjusted Gross Income calculation. The property itself is also reportable as an investment asset, but NOT if it's a family farm that's your primary residence. One strategy many parents overlook: have your student apply for outside scholarships early and often. Many local organizations, employers, and community groups offer scholarships that aren't based solely on financial need. Every $1,000 scholarship reduces what you'll need to pay out of pocket or borrow. Your son should start researching these NOW as a junior - many deadlines are early in senior year.

i just want to mention that sometimes the FAFSA website has really bad glitches. when we were trying to complete ours the site kept crashing or logging us out. we had to call the help number like 10 times and each time was on hold for hours!!!! so frustrating

Regarding your vacation cabin question: Yes, you absolutely need to report it. The rental income becomes part of your AGI on taxes, and the property itself counts as an investment asset on the FAFSA (minus any debt against it). Unlike your primary residence, which is excluded from FAFSA asset calculations, second properties are fully countable. Also, regarding the CSS Profile that I mentioned: it's an additional financial aid application required by about 200 private colleges. It's more detailed than FAFSA and includes things FAFSA doesn't, like home equity, retirement account balances, and non-custodial parent information if parents are divorced. If your son is considering private colleges, check their financial aid websites to see if they require it.

Yes, there are some SAI calculators available online, though many are still being updated for the new FAFSA formula. The College Board has a reliable one called the EFC Calculator (still uses the old name but the calculation is updated). Colleges themselves often have net price calculators on their financial aid websites that can give you school-specific estimates. With a combined income of $92,000 and assets in a 529, you'll likely have some expected contribution, but it's hard to give an exact number without the full financial picture. The key factors in the new formula are your AGI, how many people are in your household, and how many will be in college simultaneously. One important tip: if you have multiple children who will be in college at the same time, that significantly increases your aid eligibility during those overlap years. The FAFSA considers how many household members are in college.

Everyone talks about the paperwork but nobody warned me about the emotional part of this process!!! My daughter got her heart set on a school that gave her barely any aid, and we had to have some really hard conversations about debt and what was realistic. My advice: start talking with your son NOW about financial expectations and what you can actually afford. The "dream school" might not be worth $200k+ in loans.

Regarding work-study: You should check the box on FAFSA indicating interest in federal work-study. This makes your son eligible, but doesn't guarantee a position. Work-study jobs are limited and often filled on a first-come, first-served basis after acceptance. If offered in the financial aid package, he'll still need to find and apply for specific positions on campus. And to echo what others have said about expectations: Don't just focus on getting admitted—focus on affordability. A good rule of thumb is that student loan debt shouldn't exceed expected first-year salary in their chosen field. Many families get caught up in prestige and rankings without considering the long-term financial impact. Also, don't overlook community college for the first two years as a significant cost-saving strategy. Many states have guaranteed transfer programs to their public universities.

I survived the FAFSA process with three kids, and my biggest advice: start the application WELL before the deadline. The system gets overwhelmed near deadlines, and technical issues are common. Also, each school has different priority deadlines for FAFSA submission - some as early as December for the following fall. Missing these doesn't make you ineligible for federal aid, but can mean you miss out on school-specific grants and scholarships that have limited funding. Since your son is interested in computer science, also look into tech companies that offer scholarships or tuition assistance programs specifically for CS students. Google, Microsoft, Amazon, and others have programs that aren't widely advertised but can provide significant assistance.

Thanks so much everyone for all this incredibly helpful information! I feel much more prepared now. We'll definitely start looking into both FAFSA and CSS Profile requirements, check out those calculators to get an estimate, and have those important conversations with our son about college costs and expectations. The tip about tech company scholarships is fantastic - I had no idea those existed and will definitely look into those with him. And we'll be sure to start the application process early to avoid those technical headaches everyone's mentioned. One last question - if we complete the FAFSA and then don't like what we see in terms of aid offers, are there ways to appeal or negotiate with schools? Or are we basically stuck with whatever they initially offer?

Yes, you can absolutely appeal financial aid offers! This is called a "professional judgment review" or sometimes a "financial aid appeal." Each school handles these differently, but the process typically involves: 1. Writing a formal letter to the financial aid office explaining why you believe additional aid is warranted 2. Providing documentation of any special circumstances not captured on the FAFSA (job loss, medical expenses, etc.) 3. Sometimes including a competing offer from another comparable institution Colleges have discretion to adjust their offers, especially if there are circumstances that the standardized FAFSA formula doesn't account for. Some schools have limited funds for adjustments, while others (particularly private colleges with large endowments) have more flexibility. The most effective appeals are those with documented changes in financial circumstances since your tax year data or exceptional expenses that affect your ability to pay the expected contribution. Simply saying "we can't afford it" without documentation typically isn't effective.

Just wanted to add one more thing that really helped us - create a spreadsheet to track all the different deadlines and requirements for each school your son applies to. Every college has different FAFSA priority dates, some require CSS Profile, some have their own supplemental forms, and scholarship deadlines can be all over the place. We had a simple spreadsheet with columns for school name, FAFSA deadline, CSS Profile required (Y/N), CSS deadline, any school-specific forms, and scholarship application deadlines. It saved us from missing anything important and helped us stay organized during what can be a really chaotic time. Also, if your son ends up applying to any schools that meet 100% of demonstrated need (mostly highly selective private colleges), those tend to be much more generous with aid even for middle-income families. The trick is getting accepted, but it's worth looking into if his stats are competitive!