🎓The 7 Biggest FAFSA Mistakes Parents Make (and How to Avoid Them)

When my daughter and I opened the FAFSA for the first time, I figured it would be just like taxes: tedious but straightforward. Then the form started asking about “contributors,” “consent,” and “assets,” and I realized one wrong click could cost her real money. If you’ve felt that same pit in your stomach—this guide is for you.

Below are the most common FAFSA mistakes parents make, why they matter, and the simple fixes that keep your student eligible for the most aid possible.

1️⃣ Waiting Too Long (and Missing Priority Deadlines)

Yes, the federal deadline runs into June, but colleges and states often run out of grant money long before that. For the 2026–27 year, the FAFSA will be available to everyone by Oct. 1, 2025. Treat October as your family’s “go” month so your student is in the first aid batches colleges process.

Fix: Put a reminder on your calendar now. Submit in October if possible, then watch for each college’s priority deadline inside its financial aid page. If a state grant requires an earlier filing, hit that too.

2️⃣ Not Creating (or Verifying) FSA IDs Early

Every required person on the FAFSA—student, parent, and sometimes stepparent or spouse—needs a StudentAid.gov account (FSA ID). If you wait until filing day and an identity check needs extra time, you’ll be stuck.

Fix: Create (or recover) FSA IDs at StudentAid.gov at least a week before you file. Store logins in a safe place. If names, SSN, or addresses don’t match Social Security records, resolve that before you attempt the FAFSA.

3️⃣ Forgetting to Invite All “Contributors” or Skipping IRS Consent

With the new FAFSA, anyone whose info is required on the form is called a contributor (student, parent/stepparent, spouse). Each contributor must log in and give consent so the IRS can transfer the correct tax data via the Direct Data Exchange (DDX). If anyone refuses or doesn’t complete consent, the system won’t calculate an SAI (Student Aid Index).

Fix: Identify contributors first. From the student’s FAFSA, invite the other contributors. Each person signs in with their own FSA ID and gives consent. Don’t try to type someone else’s info for them—have them complete their part directly.

4️⃣ Mixing Up Student vs. Parent Sections (or Which Parent Counts)

This is the classic aid-killer: entering parent income in the student fields makes it look like your teen earns a full salary. Another common tripwire is listing the wrong parent when families are divorced, remarried, or separated.

Fix: Slow down and watch the labels “Student” vs. “Parent.” If divorced/separated, the FAFSA uses the parent who provided the most financial support in the last 12 months (and their spouse, if remarried). When in doubt, use the “Which parent is a contributor?” guidance on StudentAid.gov and follow it exactly.

5️⃣ Reporting the Wrong Assets (or Leaving Out the Right Ones)

Families often add things they shouldn’t (like retirement accounts) or forget items they should report (like parent-owned 529 plans for the student completing the FAFSA). That can either hurt you or cause delays if the school flags inconsistencies.

• Do NOT list: retirement accounts (401k/IRA/pension/annuities) or equity in the primary home.
• Do list: current balances in checking/savings, non-retirement investments, equity in properties other than your primary residence, and parent-owned 529s for the student.

Fix: Gather balances as of the day you sign the FAFSA. Keep a simple one-pager with totals in case a college asks for documentation later.

6️⃣ Misreporting Family Size

Family size affects eligibility. Parents sometimes forget to count a younger sibling or a dependent family member they support, which can shrink aid.

Fix: Count the student, the parent(s) whose info is used, and all dependents who receive more than half their support from that parent household. When in doubt, follow the family-size help text inside the FAFSA and mirror what you can document.

7️⃣ Not Listing Enough Colleges—or Not Signing and Submitting

You can list up to 20 colleges on the online FAFSA. If you only add one or two, you’re limiting options and you may miss early award cycles. And yes, many FAFSAs never get processed because someone forgets the final signatures.

Fix: Add every school your student might apply to (you can remove/swap later). At the end, make sure both student and parent contributors sign. Don’t close the tab until you see a submission confirmation.

🗓️ Timing Tips for 2026–27 (Parents’ Quick Checklist)

• Now: Create/verify FSA IDs for all contributors and gather 2024 tax info (that’s the year used for 2026–27).
• October 2025: File the FAFSA as soon as it opens. Add all colleges your student is considering (up to 20 online).
• After filing: Check your FAFSA Submission Summary; fix typos; watch email for school requests.

💬 What If Our Income Changed?

If your current finances aren’t reflected by the required tax year (e.g., job loss, medical bills), complete the FAFSA with the correct tax year data first. Then contact each college’s financial aid office to request a special circumstances review (also called professional judgment). They’ll tell you what documentation to provide and can adjust your aid if warranted.

🔗 Helpful CRP Resources

• What Is the CSS Profile? A Simple Guide for Parents
• Recommendation Toolkit (so you can help without overstepping)
• College Offer Comparison Sheet (free PDF)

❓ FAFSA FAQ for Parents

Do we need to file the FAFSA every year?
Yes. File every year your student is in college—even if you think you won’t qualify. Aid formulas and eligibility can change.

When does the 2026–27 FAFSA open?
The 2026–27 FAFSA will be available to everyone by Oct. 1, 2025. File early for best chances at state/college grants.

Which tax year does it use?
The 2026–27 FAFSA uses 2024 tax information (two years prior). If your current situation is very different, ask the college about a special circumstances review.

How many colleges can we list?
Up to 20 on the online FAFSA. You can add/swap schools later if needed.

Do retirement accounts count as assets?
No. Retirement accounts aren’t reported on the FAFSA. Cash/savings, non-retirement investments, and certain other assets are.

What if we make a mistake?
After processing, you can log back in and make corrections. If a school asks for verification or documentation, respond quickly so your aid isn’t delayed.

✅ Final Thoughts

Filing the FAFSA isn’t about being perfect—it’s about being early, accurate, and thorough. If you avoid these seven mistakes, you’ll save hours of back-and-forth and give your student the best shot at free money for college.