Financial Aid FAQs
In this post, I share a few updates, tips, and my most frequently asked questions on estimating college costs - a critical piece of good financial fit.
2026-2027 FAFSA Is Open - With Improvements
Real-time ID verification (no more waiting 2-3 days for FSA IDs).
Simplified Contributor invitation process: Have the Student complete their part first, and they will simply add the parent email address for much easier completion.
If parents are married or living together but file U.S. taxes separately, each will need their own FSA ID and need to consent.
“Custodial Parent” is now the parent who provided the most financial support in the last 12 months (your calculation, no federal verification).
Financial Aid: Frequently Asked Questions
When should a student apply for federal financial aid?
When the Total Cost of Attendance (sticker price) may present a financial hardship at any point during the 4+ years of college.
When a student has demonstrated financial need (or isn’t sure).
When a student may want to apply for federal student loans, even when they don’t qualify for need-based aid.
What is “Total Cost of Attendance?”
The estimated total cost of attendance per year, including:
Direct Costs (billed by the college): Tuition & Fees, Housing & Food
Indirect Costs (vary, paid out of pocket): Books, supplies, travel, personal expenses
How can I find the Total Cost of Attendance and my estimated annual costs?
Search the college name and “Net Price Calculator” (NPC) for a tool that enables you to see total costs and input your personal information to derive an estimate for your family. Some estimates are better than others. Keep a record (copy/screenshot) of your output for comparison and planning purposes. (If you’re working with me, this goes in your College Rangefinder Parent Companion workbook). Occasionally, these tools will estimate merit aid, if any, making them even more helpful for planning ahead.
How can I maximize my chances for merit aid at schools that offer it?
Apply early: Look for Early Action (non-binding) and Priority Scholarship deadlines.
Lower chance of merit aid: Prestigious and/or highly selective schools, “Reach” schools where student profile is below average of accepted/enrolled students.
Higher change of merit aid: “Likely” schools where student profile is well above the average of accepted/enrolled students, schools where students match current Institutional Priorities, and at schools that publish automatic merit grids commensurate with student profile (e.g., University of Alabama).
Rule of thumb: A college might offer prestige or great merit aid, but rarely both.
Image courtesy of my friend & colleague, Dan Reust, Aim High Educational Consulting
We will not qualify for need-based aid. Is it worth it to fill out the FAFSA?
That’s a judgment call - but keep these things in mind:
Without a FAFSA on file, a student cannot take a federal student loan.
In some states, the FAFSA serves as an application for State Aid (need-based and, potentially, merit-based programs) - such as the HOPE/Zell Miller programs in Georgia.
If something unexpected happens and financial need suddenly arises, a FAFSA will be required, and having one on file is much faster to update than starting from scratch.
It is rare, but some colleges require the FAFSA for merit aid consideration (e.g., Virginia Tech).
For some colleges, if you do not apply for financial aid during the first year admissions process, you will never be eligible for institutional aid (need or merit-based). These tend to be well-endowed, generous private colleges that meet close to 100% of need and would otherwise contribute in a crisis - so applying while not expecting to qualify might be something of an “insurance policy” in this case. Usually, these schools make this policy clear (e.g., Denison University) - but always check the latest policies with financial aid if you have any questions.
Other FA Tips:
It is imperative that you meet all early financial aid deadlines. Look for Priority Scholarship deadlines, non-binding Early Action deadlines, and give yourself plenty of time to complete all forms carefully.
Research financial aid forms and submit well in advance. State aid forms vary widely, and institutions may have their own forms as well.
CSS Profile is more onerous but worth it because it is used by colleges that tend to have more institutional money to give out, and are more generous.
Merit aid generally does not stack, but instead is used first to meet financial need.
Public schools do not generally meet demonstrated need.
When in doubt, check with the financial aid office.
Questions Families Should Ask Colleges:
For schools requiring both the FAFSA and CSS, how do you use that data to determine my eligibility? Generally speaking if submitting both, they use FAFSA to determine your Federal and State Aid first. CSS will look deeper into parent assets and overall financial situation. CSS data sent out to colleges is identical, but the way colleges use that data varies quite a bit. Policies can be vary different across institutions - ask the Financial Aid Office if you have questions.
What types of financial aid (FA) do you offer (merit, need-based, other scholarships) and how do they interact with each other? Check the website first - details are often found there.
What is your policy on outside scholarships and/or employer-provided tuition benefits? Answers vary widely. Some will reduce institutional grant aid dollar for dollar.
Does FA stay the same every year of enrollment? What minimum academic and enrollment standards must be met? Is reapplication required? If so, what process to reapply? These are almost always framed as a one year offer, so be sure you understand what happens after that first year.
How accurate is your NPC and what types of FA can I estimate with it? Output can vary - generally the fewer the questions asked, the less accurate the output - and vice verse. Make sure you enter the prior prior year income data (e.g., enter 2024 income data for the 2026-2027 academic year). If the NPC includes academic questions (e.g., test scores, GPA), it may provide merit estimates in the results.
When in doubt, reach out to the financial aid office at the college to get your financial aid questions answered, as policies may change from year-to-year.
Higher-Ed Impacts from July’s Budget Reconciliation:
For updates and details, the National Association of Student Financial Aid Administrators (NASFAA), provided this summary article and this handy reference chart.
There are too many provisions to note here, but one I want to call out is the change to the Parent Loans for Undergraduate Students (PLUS) loans program where new loan limits of $20,000 per dependent student per year have been introduced, along with a lifetime cap of $65,000 per dependent student. If you are using PLUS loans with current dependent undergraduate students, there is a legacy provision that applies.
Legacy Provision: If a borrower has a ParentPLUS loan made before July 1, 2026, while the dependent student is enrolled in a credentialed program, the parent can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to credential, whichever is less.
Financial fit is just as important as Academic and Social/Personal fit.
The best time to discuss financial fit and your budget is junior year as we build your student’s college criteria - but it’s never too late.
My Comprehensive Package or Senior Streamline Package both include a Parent/Family meeting with education on Estimating College Costs for Good Financial Fit and your own College Rangefinder Parent Workbook for estimating and tracking your costs.
This is available as an add-on or stand-alone service for other packages. Reach out if you’d like to book - Aletta@CollegeRangefinder.com
