Four ways to get more financial aid for college

By Beth Pinsker October 12, 2022

OPINION

When parents fill out the arduous 100-plus questions of the Free Application for Federal Student Aid, or FAFSA, it might cause them a bit of a headache.

When you fill out the form, the system ingests your taxes from two years prior to the application school year, now lyrically referred to as the prior-prior year’s taxes.

So for the FAFSA that parents are filling out now in 2022 for the 2023-2024 school year, it uses your 2021 taxes.

What’s distinct about the predicament this year: A lot has happened.

For one thing, some 19 million people still might not have filed their 2021 taxes, and face an extension deadline of Oct. 17 — unless they qualify for additional time due to Hurricane Ian.

But the real issue for many families is that the economy is rough. College savings invested in the stock market have faltered as the S&P 500 has fallen into a bear market.

At the same time, families crunched by inflation may have had to put ongoing savings earmarked for tuition toward the grocery budget. And most of all, with talk of a recession looming, family income is on the line.

It’s very likely that the picture the FAFSA paints does not resemble how you see your current financial situation, which is a problem, because what’s on the form is what colleges are going to use to determine your bill.

If you’re involved in this process, here are 4 pieces of advice from college pros on what to do if you don’t think you’re getting the better end of the deal on the mismatch of information.

1. Fill out financial-aid forms as soon as you can

When the FAFSA first opens in October, the website can be buggy, so you don’t necessarily have to be first in line. But experts generally advise you to do it sooner rather than later, because some schools give out money on a first-come, first-served basis. 

Side note: Even if you don’t think you’ll get aid, still fill out the financial aid information to qualify for federal loans, or in case your situation changes in the next year. 

2. Assess your overall financial situation

The success rate for appeals can be low, says Robert Farrington, founder of The College Investor, so you want to be sure that you have a good case.

Income is the major driver for calculating the expected family contribution through both the FAFSA and CSS Profile. Unfortunately, the dips in your college savings balance caused by market turmoil won’t matter much to colleges.

The most parents can do is report the balance accurately at the time they fill out the forms.

These are the types of situations that count for changing financial aid that won’t necessarily show up on the forms, according to financial aid expert Jodi Okun, owner of College Financial Aid Advisors, based in Los Angeles, and author of “Secrets of a Financial Aid Pro”: 

A drop in income

High medical expenses

Death of a parent

Private school tuition for a younger sibling

Costs for elder care

Divorce or separation of the parents

Natural disasters that impacted the family

3. Do your 2022 taxes early

If your financial situation worsened in 2022, especially after you fill out the FAFSA, rush to file your taxes as soon as you can, typically in mid-February 2023.

4. Contact the schools to let them know 

To apply to college, your student has to do essays, but your letter to financial-aid offices could be the most consequential writing in the whole process.

Financial-aid officers read thousands of appeals letters, and everyone’s asking for more money. So be truthful, clear and organized, and get to them as soon as you can. 

Robert Farrington, founder of The College Investor, says there’s a second opportunity in May, after the schools know who’s accepting.

Most people have a very empathetic, compassionate story. Use that language. The aid officers are humans. If they can help, they will.

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— Jodi Okun, owner of College Financial Aid Advisors, based in Los Angeles, and author of “Secrets of a Financial Aid Pro”

Above all, have a Plan B. If your appeal is unsuccessful and you don’t get the amount of aid you need, you might want to consider a school where you can get a better deal.

Click below to read more on MarketWatch.

Photos by:  iStock/Getty Images Story by:  Beth Pinsker Google Web Story by:  Camille Dash

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