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Another Financial Aid Form?!

Everyone has heard of the FAFSA, and it’s a requirement we all do begrudgingly (like taking out the trash!). But what on earth is the CSS Profile? And why do we need to fill it out?

The College Scholarship Service Profile, more commonly known as the CSS Profile, or just “CSS” or “Profile” for short, is administered by the College Board®. You may already be familiar with the College Board because they administer the SAT. If your student has taken the SAT, they should already have an online account registered and will be ready to go for the Profile.

Who Requires the CSS Profile and Why?

The purpose of the Profile is to allow college and college-bound students to apply for non-federal financial aid. Around 270 colleges, universities, and scholarship organizations require the Profile to be completed in addition to the FAFSA.

There may be significant financial aid opportunities at CSS schools for families struggling to afford college, especially those with extenuating circumstances affecting their ability to pay.

Colleges that require the CSS Profile may have higher sticker prices on average, but they tend to have larger endowments and are willing to distribute this money to those in need. In fact, I’ve worked with several families where the net out-of-pocket cost for their student to attend a private college or out-of-state public university (requiring the CSS Profile) was less than an in-state FAFSA-only public university.

Many of the most generous schools in the country require the Profile to be completed before they even consider a student for financial aid. Wealthy donors have helped accrue gigantic endowments for their alma maters and expect the financial aid officers to do their due diligence before giving away free money in the form of gift aid. Simply stated, for participating schools: No CSS Profile = No Financial Aid.

If your student is applying to a school that requires the Profile, submitting the forms as soon as possible is critical. Cliché sayings like “the early bird gets the worm” and “you snooze, you lose” all ring true with the Profile! Each year, the window to submit the Profile opens on October 1st, so most students who are applying to college early can submit the Profile concurrently with their college applications if they’d like.

To help plan accordingly, I recommend you click here to visit the list of participating schools requiring the CSS Profile to be completed for financial aid eligibility.

Significant Differences Between the CSS Profile and FAFSA

Divorced Parents

Following the above link, you’ll also see whether the “Noncustodial Parent” is required to report their information in cases where the student’s parents are separated or divorced. When it comes to divorce, many CSS schools require both parents to fill out their financial information.

Both the CSS Profile and FAFSA now regard the custodial parent as the one who provided the most financial support in the previous 12 months, but the FAFSA does NOT require the noncustodial parent to provide their financial information.

In the past, the custodial parent for the FAFSA was the one with whom the student lived most of the year. This used to be a differentiating factor (and a loophole), but that all changed with the 2024-2025 FAFSA.

Cost

The CSS Profile is not free. You should expect to pay a fee for the initial application to the first school ($25 in 2024) plus a separate fee for each additional school ($16 in 2024).

You may qualify for a waiver if you received an SAT fee waiver or your family AGI is under $100,000.

Time

I recommend giving yourself plenty of time to complete the CSS Profile. It is much lengthier and more time-consuming than the FAFSA.

You will want to have all your financial information in front of you and perhaps use an entire weekend to review the questions carefully to ensure you answer everything accurately.

Asset and Income Calculations

The FAFSA and CSS Profile differ in several ways regarding which assets and forms of income are counted (and by how much). Here are six differences in the calculations:

1. While the FAFSA formula counts student assets at 20% of their value, the CSS counts them at 25%. Both formulas count student income at 50%.

2. Parent assets count for no more than 5.64% on the FAFSA vs 5% on the CSS.

3. For the CSS, you will likely need to report the level of retirement assets you currently have saved in 401ks, IRAs, etc. Believe it or not, CSS schools don’t count retirement assets in their need-based aid calculations. However, they want a much more detailed picture of your finances. They want to see the skeletons in the attic.

4. You must report each child’s 529 account for the CSS Profile. You only need to report the relevant student’s 529 account balance on the FAFSA.

5. Each school that uses the CSS will likely factor in primary home equity as well (though at differing rates).

6. Depending on the college, there may be questions on life insurance (though you don’t need to report cash value) and nonqualified annuities.

If this feels tedious and invasive, that’s because it is! The CSS Profile is like the Liam Neeson of financial aid questionnaires. It will find you and everything you try to hide. Thus, the CSS Profile generally gives a far more accurate picture of a family’s finances than the FAFSA.

The Good News: the CSS Profile performs such a deep dive because these schools tend to have much more money to give out than FAFSA-only schools. For example, these schools may still give you a sizeable discount for multiple kids in college or special circumstances like job loss, high medical expenses, private school tuition, and more. You can emphasize these circumstances on the form itself instead of having to craft a formal appeal.

The overarching difference is that colleges requiring the CSS Profile use institutional formulas, which provide more flexibility with inputs and outputs than the more rigid federal methodology.

Bonus Tips for Filling Out the CSS Profile

The FAFSA has a few opportunities for asset-sheltering and income-reduction to maximize potential aid. The CSS? Not so much. Still, you may want to talk to a college funding advisor or financial aid expert about potentially moving student assets/income into parental accounts.

Here are six tips to keep in mind:

  • Do not try to hide anything, but do not include anything that’s not required.
  • Do not overvalue your business or home equity.
  • Do not put parent assets down as student assets (e.g., parents often make the mistake of putting down 529 plans here)
  • Avoid filling it out last minute. Set aside some time to go through it calmly and then review it before submitting it.
  • Keep track of priority deadlines for institutional aid, especially if you’re applying to college early. The earliest deadline is usually October 15, but November 1st and 15th are more common.
  • Even if you are not seeking need-based aid, you will most likely want to submit the CSS. Some schools will use it to determine your merit aid package.

Need Help Filling Out the FAFSA and CSS Profile?

The financial aid process is overwhelming, but you don’t have to navigate it alone. Get expert help to ensure your forms are filled out accurately and on time, giving your family the best chance to maximize financial aid. Don’t leave potential aid on the table—schedule a FREE consultation with our financial aid experts today!

I hope this blog was helpful as you plan the next steps financially for your student. Please let us know if we can ever be of service and walk by your side on this college funding journey. Feel free to email me your questions at jhicks@thecollegefundingcoach.org or schedule a meeting here.

Good luck!

Author:

James L. Hicks, CFP®, ChFC®, ChSNC, CFBS, CLU®, CPFA®, MBA


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