Student1 attends a small LAC. Student2 may want to go to free Community College for 2 years given by the state. Will Student1 get a reduced EFC? Will that college ask about how much it cost to send student2 to college?
The FAFSA does not take the cost of each child’s college into consideration. Colleges and universities that use the CSS Profile might take it into consideration depending on their own specific policies. So if Student1 is at an LAC that uses the Profile, ask the financial aid office about the formula they use.
Even if the community college is free for tuition and fees, Student2 will still have books/materials/meals/housing costs/commuting costs. So those parts of the overall Cost of Attendance might need to be taken into account.
No, with the only exception being if one student is at a service academy (the FAFSA has instructions that if one child is at a service academy, not to include ‘2’ in college).
One of my kids had basically a full ride, but the other got credit for having a sibling in college. Never asked how much I paid for the other’s school. Both were FAFSA only schools.