How to prepare for financial aid

To help your student prepare for college financial aid, here’s key information on creating an FSA ID, completing the FAFSA, and exploring other funding options like the CSS Profile and loans.  

FSA ID - Students and parents are both contributors to the FAFSA form and will create individual FSA IDs, which provide access to the FAFSA Form.  The verification process takes a few days, so both student and parent can create their FSA IDs now or a bit later.  Here is the page to create a FSA ID (parent or student).  Each person needs their own FSA ID with a unique email address and phone number, and the accounts are not linked during creation. 

FAFSA Form Opens 10/1 - The federal government does not release the FAFSA form for the application cycle until 10/1, so while you both can create your independent FAFSA IDs now, the form completion will occur later.  Typically, the student starts the form and invites parent contributors to provide their information.  This page shows the documents needed to complete the FAFSA form.  Most schools don't set a submission deadline until Spring 2026 or later.

FAFSA - Federal Grants vs Student Loans - If your family’s reported income is such that you are ineligible for grants based on financial need, the primary purpose of completing the FAFSA is to access federal student loans.  Below is the current student loan schedule. 

• Year 1 - $5500

• Year 2 -$6500

• Year 3&4 - $7500

CSS Profile - Approximately 8% of schools use the CSS profile. Schools with institutional grants for financial need that are funded through school endowments have an additional form to complete using the CSS Profile.  These schools want to see more financial information than the FAFSA, such as home equity (net value of primary residence), retirement assets, business net worth, untaxed income, and benefits.   You will access the CSS Profile through the College Board account, and the application opens October 1.

Net Price Calculator - If you are curious about whether your family might be eligible for financial aid at more expensive schools, you can use the net price calculator on the front end of each school's website.  Running the net price calculator now gives you a good feel for what the school will cost.  Remember, most selective schools that accept less than 25% of students (and others with slightly higher admit rates) do not give academic merit scholarships, only grants based on financial need. You can search the school's website using the term "net price calculator" to find the relevant page.

Parent Plus Loans - Officially known as a Federal Direct Plus Loan for parents, it is offered by the U.S. Department of Education to fill the gap if needed.  The loan is taken out in the parent's name, and the U.S. Department of Education sends the funds directly to the school.  The loan amount can cover up to the full cost of attendance.  The current interest rate on these loan types is 9.08% plus a 4% origination fee.  Interest accrues immediately, and repayment begins when the loan is disbursed.  The loan is often disbursed in two installments, one for each semester.  You will use your parent FSAID and FAFSA to apply.

Private Lenders - Private institutions, such as banks, credit unions, or online lenders like SoFi, College Ave, ISL Education Lending, Brazos, or Citizens Bank, are also available to parents.  Unlike Federal Direct Plus Loans, stricter credit checks apply, but in exchange, borrowers with excellent credit can obtain lower rates with no origination fees.  

Please contact us if you would like more information.