Unlock More Aid: Everything Parents of Students Under 24 Need to Know about Financial Aid
When it comes to financial aid, things get more complicated for students under 24. Even if they live independently, work full-time, or file their own taxes, they’re still considered Dependent Students on the FAFSA—meaning their aid eligibility is based heavily on their parent’s income and household size.
If you're a parent, this free guide was designed to help you understand the rules, explore all available funding, and avoid unnecessary student loan debt. This Guide or Post has a lot of information, but at the bottom there is a link to a Free Guide that breaks this all down into shorter, more readable information so you have the main points together in a simple guide.
What Makes a Student “Independent” on the FAFSA?
Most students under 24 are considered dependent unless they meet specific exceptions. If any of the following apply, your student could qualify as “Independent” and potentially unlock more aid:
- They’re married
- They have children or dependents
- They’re active duty military or a veteran
- They were in foster care, are an orphan, or a ward of the court
- They’ve been granted legal guardianship or are an emancipated minor
- They’ve been declared homeless or at risk of homelessness
If none of these apply, your income—and the number of people you support—will be used to calculate your student’s eligibility for aid.
Understanding Financial Aid for Dependent Students
Financial aid starts with the FAFSA (Free Application for Federal Student Aid). A dependent student must complete their section of the FAFSA and then invite a parent to complete theirs. Both the student and parent need to create separate FSA IDs to log in.
The FAFSA determines eligibility for:
- Pell Grant (free money based on need)
- FSEOG (another federal grant, while available)
- Subsidized and Unsubsidized Loans (limited for dependent students)
- Parent PLUS Loans (in the parent’s name)
Here’s how federal loans break down for first-year students:
- Dependent Students: $3,500 Subsidized + $2,000 Unsubsidized
- Independent Students: $3,500 Subsidized + $6,000 Unsubsidized
Because dependent students get less in unsubsidized loans, they’re more likely to have a tuition balance left over—even with Pell Grant eligibility.
The Parent PLUS Loan: A Double-Edged Sword
To help cover those gaps, the Parent PLUS Loan is available. It’s a federal loan in the parent’s name and can be used up to the full cost of attendance, often resulting in large refunds or stipends. It’s deferred while the student is enrolled but is still a loan—and parents are fully responsible for repaying it.
It’s a helpful option in some situations, but I believe it should be the last resort, not the first.
Tips to Increase Financial Aid Eligibility
Many middle-income families are surprised to learn they may still qualify for the Pell Grant—especially when their household size is larger. Even families earning $100,000 may be eligible if they support three or more children.
Here’s why: the FAFSA uses a Student Aid Index (SAI) to determine eligibility. The lower the SAI, the more Pell Grant your student can receive. The best-case scenario is an SAI of -1,500. Students can still qualify for Pell with an SAI up to around 6,000.
One big tip: If your income has dropped since 2023 (the FAFSA tax year for 2025–2026), ask for a Professional Judgment (P.J.). This allows your school’s financial aid office to adjust your FAFSA based on your current income instead of your 2023 taxes.
You’ll need:
- A signed statement explaining your situation
- Documentation of reduced income (layoff notice, unemployment paperwork, etc.)
- To communicate with your Financial Aid Advisor—they want to help!
Step-by-Step FAFSA Guide for Parents
- Student creates FSA ID and starts the FAFSA for 2025–2026 (covering July 1, 2025–June 30, 2026).
- Student invites parent via email to complete their portion.
- Parent creates/logs in with their own FSA ID.
- From the FAFSA dashboard, select “My Activity” and click on the invite.
- Complete your section of the FAFSA and submit.
This new FAFSA is shorter and more streamlined, but accuracy is key—especially when entering tax info and household size.
What If Aid Still Isn’t Enough?
If your student doesn’t qualify for Pell and loans don’t cover all tuition, don’t panic. There are still other ways to pay without borrowing:
- Scholarships (we help you find them!)
- Employer Tuition Reimbursement
- State aid and institutional grants
- Work-study programs
- Creative strategies I teach in my courses: FAFSA Made Simple and Debt-Free Degree
Remember, your goal is to minimize or eliminate the need for loans—not just for your student but for your own financial future too.
Final Thoughts: You Don’t Have to Figure This Out Alone
The financial aid process can be confusing—but with the right information and support, it doesn’t have to be overwhelming.
I've walked this same road with my own daughter and have helped thousands of families maximize aid and reduce debt. I even helped my own sister figure out how to pay for her son’s education this fall. I’d be honored to help you too.
👉 Start by downloading our free guide: Unlock More Aid
Then explore our courses, resources, and reach out with questions—we’re here for you.
Let’s make a debt-free degree your student’s reality.
