Financial Matters: What Parents of High School Seniors Need to Know

This year’s financial aid landscape brings changes that parents of college-bound seniors should understand. The traditional financial aid timeline has shifted, and being prepared for these changes will help your family navigate the process more effectively.

This year's Free Application for Federal Student Aid (FAFSA) launched in December 2024, rather than its usual October opening. While the form itself is shorter and more streamlined, the processing timeline has expanded considerably. For many families, particularly those applying to private colleges, there's an additional form to consider: the CSS Profile. Unlike the FAFSA, the CSS Profile application opened on schedule in October 2024 and is required by approximately 400 institutions, primarily private colleges and universities.

First, it's important to understand that even though the FAFSA opened later, submitting both the FAFSA and CSS Profile (if required) as soon as possible is essential. The CSS Profile is more detailed than the FAFSA and requires additional financial information, including home equity and small business assets. Completing it early can give schools a fuller picture of your family's financial situation. The initial processing of FAFSA applications may take several weeks, and colleges won't receive student information until late January or early February 2025. CSS Profile data, however, is typically processed more quickly and is already available to schools.

These processing delays create a domino effect on financial aid award letters. Regular decision applicants might not receive their awards until March or April 2025, while even Early Decision and Early Action students may have to wait until February or March to learn about their aid packages. Some institutions may send tentative awards based on preliminary information, including CSS Profile data, but final numbers could change once FAFSA information becomes available.

Given these timeline shifts, parents should take several proactive steps. Submit both the FAFSA and CSS Profile (if required) as soon as possible, if you haven't already done so. Keep all tax and income documents readily accessible, as you may need to reference them quickly if questions arise. The CSS Profile typically requires more detailed financial information than the FAFSA, including information about home equity, retirement accounts, and small business assets, so gather these documents as well. Additionally, maintain close communication with the financial aid offices at your student's chosen schools to understand their specific timelines and requirements.

It's also wise to prepare for possible appeals or special circumstances reviews. If your family's financial situation has changed since 2023 (the tax year used for the 2025-26 FAFSA), document these changes carefully. While the FAFSA has limited space for explaining special circumstances, the CSS Profile provides more opportunities to detail unique financial situations. Many schools have specific processes for considering special circumstances, and understanding these procedures in advance can save valuable time later.