Key takeaways:
- Job loss, reduced earnings, divorce, health concerns, and other problems and emergencies can impact a family’s finances, affecting their ability to pay for college.
- If you feel your FAFSA and financial aid offer doesn’t reflect your current financial situation, you can request an aid adjustment.
- Colleges’ aid adjustment procedures vary, but gather relevant documents ahead of time and always be polite when making your request.
A lot can happen between the time you fill out the Free Application for Federal Student Aid (FAFSA) and the time you receive a financial award letter. The FAFSA also uses the previous year’s taxes, which might not reflect your current situation. If your submission doesn’t accurately represent your finances or if you’ve had changes in your financial situation, you might still be eligible for more money – here’s how.
How can financial situations change?
The United States Department of Education (DE) releases the FAFSA every year on October 1. It pulls from the previous tax year. If you complete the 2027-2028 FAFSA in 2026, the DE uses tax and income information from 2025. And you won’t receive a financial aid award letter until early to mid-spring.
If your financial situation changed drastically, you could be in a position where you won’t get enough aid to cover the cost of college.
Some common reasons students’ financial situations change include:
- Household wage earner’s reduction of wages
- Recent job loss
- Unexpected medical or dental expenses not covered by insurance
- Serious illness, disability or death of a household wage earner
- Mental incapacitation of a household wage-earner
- Separation or divorce
- Other changes in the family income or assets
- Institutionalization or incarceration of a household wage-earner
- Reductions or end of child support
- Recent nursing home expenses or special-needs expenses not covered by insurance
- Damage or loss of residence due to natural disasters such as floods, earthquakes, fires, tornadoes, etc.
Even if you don’t see the reason for your current situation on this list, you might still have options.
What is an aid adjustment?
If your financial situation changes, you’ll want to reach out to your school’s financial aid department, not the government, about a financial aid adjustment.
Once requested, the school’s financial aid administrator will review your request and relevant documentation to determine if an aid adjustment, also known as a professional judgement, is needed. If they approve your request, they’ll edit the data in your FAFSA, which changes your Student Aid Index (SAI). Their decision is final and the DE can’t interfere on your behalf.
What should you do if your financial situation changes?
Every school approaches an aid adjustment slightly differently, but generally, you’ll want to follow these three steps:
1. Fill out the FAFSA
Even if your financial situation has changed in the past year, still submit the FAFSA. You’ll need to complete it for the next steps.
Make sure to complete your FAFSA accurately. Misrepresenting information on this form can have serious consequences, including fines and jail time. Since the application pulls from the Internal Revenue Service’s (IRS) records, your financial information should be accurate for that tax year.
If you notice you’ve made errors on your FAFSA, you can correct them.
2. Gather evidence
Before you can request an aid adjustment, you’ll likely need to gather evidence of your changed financial situation. You’ll want relevant letters, pay stubs, bank statements, court or legal documents, and anything else that explains why you’re putting in a request. Have them all on hand now to save time later.
If possible, create a spreadsheet or document your finances. Be as specific as you can with dates and numbers.
3. Contact the school
If you’re a current college student, reach out to your school’s financial aid department. If you’re not attending yet, contact all of the schools’ you applied to.
You’ll want to ask the department directly about an aid adjustment. They’ll advise you on the next steps. Every school is different, so keep notes on which college needs what documentation.
In addition to the evidence listed above, the financial aid office might also request:
- An interview with a financial aid administrator
- Statements from yourself, your parent, a spouse, or someone else
- Letters from college or high school staff detailing your situation
If you need to write an appeal letter or attend an interview, explain everything in detail. Be polite and factual, and answer all of their questions. How you request assistance can impact the outcome.
What if the aid adjustment isn’t enough?
If the aid adjustment is denied or it doesn’t cover enough of your college costs, you still have options, such as:
- Applying for scholarships and grants.
- Learning more about food and healthcare programs through your community or school, including meal plan options.
- Asking for more loans from the government, such as the Direct PLUS Loan for parents.
- Working part-time or full-time, or take advantage of a work-study program if approved.
- Taking out private student loans.
A change in your financial situation just before you go to college can be scary, but you have options. Your first step should always be to contact the school. While you’re waiting for a response from the financial aid department, start applying to scholarships and grants to help bridge the gap between what you have and the cost of college.
There are millions of scholarships available to college students. With our Scholarship Search Tool, we make it easy to find the ones you qualify for. And, it’s completely free so try it today.
