Financial Matters: It’s Time to Complete the FAFSA and CCS Profile
As your high school student prepares for college, understanding the financial aid process can make the difference between affordability and overwhelming debt. The good news? October 1st marks the opening of financial aid applications for the upcoming academic year, giving you a clear starting point for this important journey.
The Free Application for Federal Student Aid (FAFSA) is required by every U.S. college and university if your student is applying for need-based financial aid. This federal form costs nothing to submit and serves as the gateway to federal grants, loans, and work-study programs.
Before you begin, both you and your student will need to create individual FSA IDs, which serve as electronic signatures when submitting the application. This ID will be used throughout your student's college years, so keep the login information secure.
The CSS Profile is used by some elite public universities and many private universities because it provides more detailed financial information than the FAFSA. This distinction matters because the CSS Profile is specifically designed for determining eligibility for institutional financial aid, while the FAFSA is primarily used for federal government funding programs. Schools that provide institutional aid without requiring the CSS Profile typically base their awards on the financial information from the FAFSA alone.
The CSS Profile is more comprehensive and detailed than the FAFSA, requiring additional financial information and taking longer to complete. There is a submission fee plus reporting charges for each college that receives your information.
It is recommended to complete both the FAFSA as your circumstances may change. Even if you don’t think you’ll need aid, many colleges still require the FAFSA or CSS Profile for merit scholarships, so completing these forms keeps all options open.
Since both the FAFSA and CSS Profile are designed to be submitted only once with all your colleges listed, your best strategy is to submit both forms before your earliest college deadline. Missing a financial aid deadline can reduce the amount of aid your student receives, since some funds are limited and awarded on a first-come, first-served basis.
Check the financial aid pages on each college website where your student is applying, or contact their financial aid offices directly to verify deadlines for each application round (Early Decision, Early Action, and Regular Decision may all have different dates).
When completing these forms, keep in mind that student assets are assessed much more heavily than parent assets. Student assets are evaluated at 20% by the FAFSA and 25% by the CSS Profile, while parental assets are assessed at only 5.64% by the FAFSA and 5% by the CSS Profile.
This means if you have a 529 college savings plan for your student, make sure it's listed as a parent asset rather than a student asset. The beneficiary designation doesn't matter; what matters is who owns the account.
The time you invest in understanding and completing these forms properly could save your family thousands of dollars over your student's college career. Start early, stay organized, and don't hesitate to reach out to college financial aid offices with questions; they're there to help you navigate this process successfully.
