Any experiences or guidance? Our 2026 taxes will reflect a year very in flux. I have lost my job, and while there is severance and I am job hunting it’s almost June so whatever happens this year is very wonky. Fairly high-earning spouse’s situation is also about to drastically change, pulling income way down and from different sources beyond a traditional salary.
Do we have any choice but to wait until our child is applying to college and then contact each school, or since we know this now is there anything we should be considering? I know we have over a year until we have to fill out FAFSA and CSS but this is weighing on my mind. It also will definitely impact how D28 thinks about her list, since we really have no idea what will be an option beyond what is in her 529. She already knows there are schools that will need aid, but we really don’t know whether need-based aid will be on the table or just chasing merit.
You will have to file 2028-29 FAFSA using 2026 taxes and IRS DRT (data retrieval tool), with no option to make edits. You will use assets as of the day you file FAFSA (and CSS as applicable.) Both forms typically open Oct 1 for the next year. There is no field to explain changes in the FAFSA, but there is at least one question in the CSS to explain a change in circumstances.
If there were material changes in 2026/27/28, you will have to speak with each school’s financial aid department, asking for professional judgment. Follow each school’s process, typically detailed on the FA website. Some have a form to fill out.
There are a select few schools where you can get a financial aid pre-read before applying. This list is a good start, but verify details on each school’s website. If you do one/a few of these, it might be indicative of how discussions go with other schools. Financial Pre-reads, including merit + merit ED
NPCs at many schools should be accurate for the baseline need-based FA estimates, but as you probably know, many NPCs don’t estimate merit. Note that NPCs may not be accurate if parents are divorced, own a business and/or real estate beyond a primary home…are any of those the case for you?
If merit is important, you might prioritize schools that use merit award grids based on stats (so an actual number or relatively tight range is knowable before applying.) Also use the common data sets (CDS) section H to see average merit awards, which may help you add/subtract schools from the list.
2 Likes
Thank you. We won’t even realistically be able to use an NPC until summer of 2027 right before D28 is applying because our financial situation is incredibly unknown.
None of those situations apply. I’d prefer not to potentially dox myself if people we know are on here, but suffice it to say that things are changing significantly. And because I am still job hunting, even if we knew right now what his moving forward income will be, the delta between my current $0 plus lump sum severance in 2026 will completely depend on when and if I find employment again.
1 Like
Right, and always keep screenshots of the results.
However, you could use the NPCs to do some ‘modeling’ though, running some scenarios of different levels of income/assets. In that case, say you did it now, you would just have to increase the direct charges (tuition/fees/room/board) by 5% or so each year.
The meet full need schools’ aid packages should keep pace with those direct charge increases, some other schools might not. And of course there is the chance that some schools might change their FA formula by the time Oct 1 2027 rolls around.
ETA: Good luck with the job hunt, hugs to you as you deal with this uncertainty
2 Likes
I would suggest you look strongly at colleges where your student has a good chance of garnering merit aid. Merit aid doesn’t rely on income or assets (except there are some merit awards that also consider need). Find a couple of these schools as they could be your student’s safe harbor. There are some wonderful colleges out there and some have guaranteed merit aid based on stats. The honors colleges at many larger universities are well regarded.
You need to also look into the public universities in your own state as those costs might be more favorable for your family.
And 
a new job comes your way.
3 Likes