As I mentioned in my blog post on the basics of financial aid, I’ve been researching college costs and financial aid in case there’s something I can do now that will help get more aid when my daughter applies to college in four years. I recently read the 2024 edition of Paying for College, 2025: Everything You Need to Maximize Financial Aid and Afford College, and here’s what I learned from that and other sources:

What is the FAFSA?
The Financial Aid Form for Student Aid (FAFSA) is used to determine a student’s eligibility to receive aid from the federal government, the state and schools in the form of grants, scholarships and loans. The FAFSA is available on the Federal Student Aid website. The FAFSA process last year was a complete disaster, so fingers crossed things go more smoothly this year. That said, the 2025-26 FAFSA is already delayed since it’s usually available on October 1, but it won’t be broadly available until December 1 this year.

When is the FAFSA due?
The federal deadline is June 30 for the school year starting in the fall, but you will likely need to submit it during the winter or spring. Each state has its own deadline, often earlier than the federal deadline. Most are due in the spring, but some states, like Georgia and Maine, award scholarships on a rolling basis until the funds are depleted and indicate to apply as soon as possible. School deadlines might be earlier than your state deadline, so you have to look them up for each of the schools your kid is applying to.

What is my Student Aid Index and how is it calculated?
The Student Aid Index (SAI) is a numerical assessment that indicates the extent to which your kid needs financial aid, and it should be the same no matter what schools they apply to. It was recently renamed from the Expected Family Contribution (EFC) so you will probably see references to both, but they are the same thing. The SAI/EFC is calculated based on the below four elements, which you input into the FAFSA:

Financial Element	What Is Included?	FAFSA Calculation	Pro Tip
Parent Income	For most families, this is the biggest factor that affects financial aid. The FAFSA looks at your income from your prior-prior year tax return, which includes taxable Social Security benefits. What prior-prior year means is that if you are completing the FAFSA in 2024/2025 (your kid’s senior year), it will look at your income from 2023 (the end of your kid’s sophomore year and start of their junior year). Note: If you have remarried, your spouse’s income will be included, even if they don’t plan to contribute.	22% to 47% of income (after varied allowances that differ by family)	If your income has decreased since filing your prior-prior year tax return (i.e. you lost your job), inform the schools your kid is applying to.
Parent Assets	The FAFSA looks at your bank accounts, savings/brokerage accounts, 529 accounts and investment properties on the day you file. Your retirement accounts (IRAs, 401Ks) are NOT included in reportable assets. Note: If you have remarried, your spouse’s assets will be included, even if they don’t plan to contribute.	5.64% of reportable assets	Make any big planned purchases, pay your major bills and contribute to IRAs or HSAs before filing the FAFSA so that your assets are as low as possible.
Student Income	The FAFSA looks at your kid’s prior-prior tax return income but, if they did not meet the threshold to file taxes during that year, they wouldn’t have any income to report. Untaxed Social Security benefits are not included.	50% of income (after taxes and $11,510 in income protection allowance)	Most high school students don’t make enough income to meet the threshold to file taxes.
Student Assets	The FAFSA looks at any bank or savings accounts in your kid’s name. Accounts where your kid is listed as the beneficiary are excluded.	20% of reportable assets	Avoid putting assets in your kid’s name. For example, it’s better to put a 529 in your name, with your kid as the beneficiary, instead of in your kid’s name.

How do schools create financial aid packages?
Colleges take your SAI/EFC and then tailor a financial aid package to you, but that package will vary from school to school. If you applied to three different schools that all cost the same, you would still receive three different financial aid packages even though your “need” would be the same. Colleges with large endowments would give more in grants/scholarships (which don’t need to be paid back) while colleges with smaller endowments would have less “free money” to give and would give more in loans or work-study programs.

Pro Tip: Consider encouraging your kid to apply to schools with large endowments as they are typically more generous with financial aid.

What is the CSS Profile?
To further complicate the calculation of financial aid, these 250+ selective colleges and universities (mostly private institutions, but some public ones too) also require applicants to complete the CSS Profile which asks for additional information, like the amount of home equity you have and how much other family members (like grandparents) will contribute to tuition payments.

So now what?
In short, the formula for calculating financial aid is complicated, but you may qualify for more financial aid than you think. And if you’re thinking you shouldn’t apply to a school because you can’t afford the total cost of attendance, read my previous blog post to learn about net price calculators. Each school has a net price calculator on their website, and filling one out is an easy way to gauge how much financial aid a school *might* give you. Stay tuned for a blog post on tips to increase your financial aid.

To learn more about college financial aid, read my other blog posts:

• What Widowed Parents Need to Know About College Financial Aid: The Basics
• Ten Tips for Widowed Parents to Get More College Financial Aid
• Five Tips for Widowed Parents to Reduce College Costs

Disclaimer: I am not an expert in college financial aid and am merely passing along information based on my understanding of it.