FAFSA 2024-5
Hey there Class of 2025 parents & guardians & students!
It’s September, which means it’s time to make the decision about whether to apply for need-based financial aid for the 2025-2026 academic year. If you decide to apply, the required forms and deadlines vary school to school. It is the student and family’s responsibility to keep track of this information that is posted on each college’s website.
Here is some information to guide you.
A big thanks to Jeff Levy and the Big J Team for putting together & offering this content.
If the student is a U.S. citizen or eligible non-citizen, each institution will require submission of the Free Application for Federal Student Aid (FAFSA). Because of recent technology challenges, the FAFSA will be available on December 1, 2024, two months later than usual.
About 170 colleges and universities also require submission of the CSS Profile for need-based aid consideration. This list of schools can be found here, but always best to verify with the institution itself. The first day the CSS Profile will be available is October 1, 2024.
If the student is not a U.S. citizen or eligible non-citizen, the financial aid policy and application process varies by institution. In most cases you will need to file either the CSS Profile or an institution-specific form. Check with each institution for their instructions. To see which institutions give financial aid to international students, refer to our international financial aid resource.
Who should apply for financial aid?
Anyone who thinks they may qualify for need-based aid at any point during their undergraduate years should apply as an incoming freshman. Some colleges may impose a one-year waiting period on students who require need-based aid in later years and did not apply as incoming freshmen. Others may disallow institutional aid for all four years (typically the case for international students). Unexpected financial events can occur, so best to plan for worst-case scenarios.
Anyone applying for merit aid at institutions that require the FAFSA or CSS Profile for consideration for such awards. Although the vast majority of schools do not require the FAFSA or CSS Profile for merit aid consideration, it is best to verify on each college’s website or with the admission office.
Is there a disadvantage in applying for financial aid?
Sometimes. Higher ed institutions are businesses that try to meet net tuition revenue goals. In the final stages of building a class, an applicant with moderate to substantial need may lose out to an applicant with no projected need.
Does this mean that full-pay applicants always receive an advantage over applicants with need? No. Each year, colleges hope to admit the best freshman class in its history, not the least expensive.
Who should not apply for financial aid?
If the sticker price is not a financial burden, and you are confident there will be no significant financial hardships during the student’s undergraduate years, then there is no reason to submit the FAFSA or CSS Profile.
Don’t some states require submission of the FAFSA?
Yes. About a dozen states have already enacted such laws, and others are considering it. But parents can easily opt out.
Anything else important to know before we decide whether to apply for need-based aid?
Yes. For U.S. citizens and eligible non-citizens, the biggest factor in need eligibility is parent and student Adjusted Gross Income (AGI), located on line 11 of the U.S. federal tax Form 1040. The income looked at is from two years prior to the year the student will enroll in college. In other words, if the student will be enrolling in August, 2025, the tax year the FAFSA and CSS Profile look at is 2023.
Parent and student assets are the second most important factor. Reportable assets include savings and checking accounts, investment accounts, real estate (equity in the primary home is excluded from the FAFSA but included on the CSS Profile), and the net worth of a family farm or business. Assets excluded from both forms are qualified retirement accounts, art, jewelry, furniture, and cars.
There is no requirement to list all the student’s colleges on the FAFSA and CSS Profile, just those to which you are applying for need-based aid.
I’m available for more questions or to guide you to more resources.
Linda
