A warm guide for families navigating financial aid with clarity and confidence
Sorting through financial aid rules can be confusing—especially for divorced or separated parents, where knowing which parent’s information to use can significantly affect eligibility. The Free Application for Federal Student Aid (FAFSA) is one of the most important steps in obtaining financial aid, yet the application and rules have changed frequently in recent years, leaving many families unsure how to navigate the FAFSA and current rules. Understanding today’s FAFSA requirements—particularly how they work in two-household situations—can help families make informed choices and avoid missing out on valuable aid. To help, here are 10 common FAFSA myths and the truths that every parent should know.
Myth #1: FAFSA uses last year’s taxes.
Truth: FAFSA always looks back two years. For example, the 2026–27 FAFSA uses 2024 taxes.
Myth #2: The parent who claims the student on taxes always goes on FAFSA.
Truth: FAFSA now uses the parent who provided the most financial support in the last 12 months — not who claimed the student on taxes.
Myth #3: FAFSA cares which parent has custody.
Truth: Custody no longer matters — only who provided more support.
Myth #4: FAFSA and CSS Profile are the same thing.
Truth: FAFSA determines federal aid; the CSS Profile (and IDOC) determine institutional aid and may ask for additional documents.
Myth #5: You can list as many schools as you want.
Truth: FAFSA allows up to 20 schools at a time, but you can update and resend after submitting.
Myth #6: School order matters on FAFSA.
Truth: For most families, it doesn’t. Only a few states still prefer an in-state school listed first.
Myth #7: You’ll lose aid if your student has savings.
Truth: Student assets are counted at a small percentage. Saving for college is never a bad thing.
Myth #8: You can’t file FAFSA if you haven’t done taxes yet.
Truth: You can! The IRS Direct Data Exchange (DDE) will automatically import your 2024 tax info when it’s available.
Myth #9: FAFSA requires you to upload your tax returns.
Truth: Not anymore — FAFSA uses the secure IRS DDE link, so no manual uploads are needed.
Myth #10: FAFSA is only for low-income families.
Truth: Every family should file. Many scholarships and institutional grants require a completed FAFSA regardless of income.
Filing the FAFSA can feel overwhelming—especially for divorced or separated parents, where even small details can change how aid is calculated. Knowing the facts makes the process much clearer and helps you make confident decisions for your student’s future. If you have questions about how these rules apply to your two-household or co-parenting situation, reach out to me directly here. I’m happy to help you navigate the financial aid process with clarity and confidence.
For informational purposes only. Not financial, tax, or legal advice. FAFSA policies subject to change.