20 Deadly FAFSA Mistakes
That Cost Families $10,000 – $50,000+ in 2026–27

Most parents make at least 3 of these right now

One single mistake can wipe out an entire year of Pell Grant + state aid

  1. Waiting until after your state priority deadline
  2. Listing the richer parent when divorced/separated
  3. Forgetting to exclude your small family farm or business
  4. Reporting grandparent 529 plans (they’re invisible now)
  5. Leaving retirement contributions blank (they no longer count)
  6. Using 2025 income instead of 2024 tax data
  7. Not creating an FSA ID early (delays everything)
  8. Skipping the IRS Direct Data Exchange
  9. Reporting home equity (100 % exempt)
  10. Putting savings in the student’s name (20 % penalty)
  11. Missing the contributor invite email
  12. Not appealing for Special Circumstances (job loss, medical)
  13. Assuming you make too much for aid (many $120k+ families now qualify)
  14. Only applying to one college (no leverage)
  15. Forgetting to verify identity (new requirement)
  16. Using last year’s login info (everyone needs new FSA ID)
  17. Reporting cash support as “zero” from non-custodial parent
  18. Not checking for state-specific forms (NY TAP, CA GPA, etc.)
  19. Filing corrections after September 2027 (too late)
  20. Trusting TikTok “hacks” instead of official rules

The average family who fixes just 3 of these mistakes
gains an extra $18,000–$32,000 in free money