12 Feb Financial Disruption and College Financial Aid

Posted at 15:49h in Uncategorized by

As a long-time DC resident and former federal employee, I’m acutely aware that many of my friends and neighbors are experiencing or may be anticipating significant financial disruption. On February 11, I hosted a webinar for families who are facing financial challenges and have children who are in or approaching college. Whether you’re a federal employee or contractor experiencing a loss of income, or you’ve been impacted by another sudden financial change such as a natural disaster, I shared advice on what parents of current or future college students should be thinking about as they’re coping with unexpected financial stresses.  What follows is a summary of that advice, and I welcome inquiries from families who could benefit from additional guidance.

For families with students currently in college:

  • If you have not filed the FAFSA for the current school year, it’s not too late. This would give your student access to federal student loans regardless of your financial situation.
  • The FAFSA requires you to report income from two years before the beginning of each school year. (Ex.: The 2024-25 school year FAFSA uses income from tax year 2022.) If your financial situation has changed, the college will not have an accurate picture of your current situation unless you tell them. Contact the financial aid office of your student’s college to find out (1) the process for providing updated financial information, and (2) whether additional support might be available.
  • Similar guidance applies for families looking at the 2025-26 school year. If you have not received need-based aid in previous years, you might be eligible now. If you have been receiving need-based aid, you might be eligible for an increase. Complete the 2025-26 FAFSA and follow up with the college’s financial aid office to ensure they have your most up-to-date financial information.
  • Many colleges have emergency funds for smaller, short-term needs.  If this kind of assistance would be helpful, ask the financial aid office if such funding is available.

For students graduating from high school in 2025:

  • Typically these students have submitted admission and financial aid applications by now and might have received decisions and aid awards, or will be receiving them soon.
    • If your financial situation has changed recently, the college will be basing its offer on outdated information.  Contact the financial aid office of each college and find out their process for providing updated information.
    • If the student received an aid offer based on financial information that has changed, ask about the school’s appeal process, which would allow you to share new information and have them reconsider their offer.  This article from 2020 provides additional information on appealing aid awards and this website offers additional resources.

For families with high school juniors:

  • A good first step is to find out your eligibility for federal financial aid using the Federal Student Aid Estimator, and to use the net price calculators colleges have on their websites to get an estimate of aid your student might be eligible for at each school he or she is considering.
  • The financial aid forms you’ll have to complete will become available on October 1. Each college will have its own deadline, usually around the time the application is due.
  • Note: The federal student aid formula uses income information from two years before the beginning of the school year you’re applying for. That means if your student is graduating in 2026, you will complete the forms in the fall using 2024 income. If you have significant changes in your income this year, you’ll want to communicate that to the financial aid office of each college so they can take the current picture into consideration when making awards.

Again, I encourage impacted federal employees and others to contact me directly at [email protected] if I can be helpful at this difficult time.



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