FAFSA VS CSS PROFILE

Federal Methodology, as expressed in the form “FAFSA,” is used for awarding federal student aid. Any student who wants to be considered for federal aid must complete a FAFSA form. Applying to FAFSA is free. The FAFSA looks at students’ and parents’ (if a student is a dependent) financial information to determine what they can afford to pay, the EFC (Expected Family Contribution). They consider income, taxable and non-taxable, and assets for both students and parents and use that information to award federal and sometimes state grants and loans. This form is directed at students even when parents also fill it out. They provide some allowances for parents and students based on things like federal and state taxes paid and how many children are currently in college. There are some adjustments, but things are not dollar for dollar. FAFSA excludes many significant assets from their calculations, including but not limited to retirement accounts, equity in a primary home, and equity in a business that has less than 100 employees. FAFSA is for US Citizens or eligible non-citizens. 

Institutional Methodology is calculated using the CSS Profile. About 170 institutions require the CSS Profile. The list of institutions is here, but it is always best to verify with the institution: profile.collegeboard.org/profile/ppi/. It costs $25 for the first school it is used for and $16 for each additional school unless a student qualifies for a fee waiver. It is directed at parents. It was created and is processed by the College Board. CSS Profile is used to determine what families can afford to contribute to their child’s college costs, EFC. This will not be the same EFC number arrived at by FAFSA as the two methodologies have some very different ways of calculating results. It will also consider income taxable and non-taxable assets for both students and parents and use that information to award institutional aid. It is how income and assets are considered where these two methodologies come up with different results. The CSS Profile, first of all, expects students to contribute to their education. Not only do students lose the $6,840 income allowance that FAFSA provides them, CSS Profile expects them to contribute $2,000 a year to their education. CSS Profile also gets much more into the parent’s finances. They consider equity in their primary home, annuities, and equity in a business with less than 100 employees to be assets important in calculating EFC. CSS also considers the financial information of both parents and potentially four parents in cases where a child’s parents are divorced and remarried. FAFSA only considers financial information from a student’s primary parent. Generally, the CSS Profile wants more information than FAFSA on what is your family’s financial considerations. This can both work for and against you in seeking financial aid. It can work for you in cases where the CSS profile will also consider if your family has had extenuating financial expenses. For example, loss of employment and extensive medical or dental expenses, or some schools will also consider if a family has a younger child in private school. Both CSS and FAFSA consider if a family has other children in college. Just a head’s up, but that is due to change for FAFSA next year. CSS Profile can get filed by anyone looking to become a student at a school that uses it, including international students at most schools. CSS Profile often looks at a family's savings and equity in their home and expects them to contribute a huge amount to their children’s education. It makes private college unaffordable for many families unless their student also receives some merit aid. 

Lastly, both FAFSA and CSS Profile are open for filing as early as October 1st, but they have different deadlines that they must be filed by. FAFSA must be filed by June 30, and CSS Profile has different deadlines in line with each school.