I'm so glad you were able to get through to someone and get some clarity! This whole situation really highlights how confusing and stressful the FAFSA process can be, especially when changes happen after you've already submitted everything. Your update gives me hope that there are actual solutions available through the appeals process. For anyone else dealing with similar SAI increases after reprocessing, it sounds like the key steps are: 1) Get the detailed calculation from Federal Student Aid, 2) Contact your schools' financial aid offices immediately, 3) Ask specifically about "professional judgment review" and "special circumstances appeal" processes, and 4) Come prepared with all your tax documents including business schedules. Thanks for sharing your experience - it's really helpful to see that there's light at the end of the tunnel even when these massive SAI jumps happen!

This whole FAFSA reprocessing situation is honestly terrifying for so many families right now. I've been working with students affected by these formula changes, and Diego, your $7K increase is unfortunately not uncommon for families with small business income. What's particularly frustrating is that the Department of Education implemented these changes mid-cycle without clear communication about what specifically was being adjusted. For anyone else reading this thread who might be dealing with similar increases: document EVERYTHING. Save screenshots of your original SAI, print out the reprocessing notification email, and gather all your tax documents including every schedule and form. The professional judgment appeals that others have mentioned here really do work, but you need to be prepared with comprehensive documentation. Also, don't just focus on your top choice schools - contact ALL the schools you've applied to. Some have more generous professional judgment policies than others, and this could actually influence your final college decision. The appeals process can take several weeks, so time is really critical right now. Hang in there, Diego - sounds like you're on the right track with those financial aid office appointments!

One more important point: make sure your son understands that his initial aid offers might be lower than they should be because of this error. He shouldn't make his college decision based on those initial packages if the 401k issue hasn't been addressed. Also, keep detailed records of every conversation - who you spoke with, date/time, what was discussed, and any case numbers or follow-up instructions. This paper trail will be crucial if you need to escalate the issue later.

I went through something similar with my daughter's FAFSA two years ago! The key thing to remember is that this mistake actually happens more often than you'd think - financial aid officers have seen it before and know how to handle it. Here's what worked for us: I created a simple one-page document explaining the error, included a screenshot of the 401k account statement showing it's a qualified retirement plan, and emailed it to the financial aid offices at her top 3 schools before she even got her acceptance letters. Most of them responded within a few days acknowledging the issue and confirming they'd note it in her file. When the aid packages came out, two schools had already adjusted them correctly, and the third fixed it within a week after I called. Don't let this stress consume you - it's fixable, and your son's aid chances aren't ruined!

To summarize what everyone has said: 1. Keep Parent PLUS separate from your Direct Loans (they can't be combined anyway) 2. Don't consolidate your subsidized and unsubsidized loans while in school 3. For your additional $15k need, pursue in this order: grants/scholarships > work-study > subsidized loans > unsubsidized loans > Parent PLUS 4. Your existing loans don't affect your SAI calculation for next year's FAFSA 5. Be aware of aggregate loan limits ($31,000 total for dependent undergrads for Direct Loans) The best approach is to minimize borrowing where possible, and when you must borrow, prioritize the loans with the best terms (lowest interest, best protections).

Just wanted to add one more tip - make sure to submit your FAFSA as early as possible once it opens for your sophomore year! Priority deadlines can really impact how much aid you get, especially for state grants and work-study positions which are often first-come, first-served. I made the mistake of waiting until March my first year and missed out on some grant money. Also, if your family's financial situation has changed significantly since last year (job loss, medical expenses, etc.), don't forget you can appeal your aid package or request a professional judgment review with your school's financial aid office.

UPDATE: I was finally able to speak with someone at Federal Student Aid! Turns out it was multiple small issues adding up. We did incorrectly report our small business inventory, included a small inherited IRA as a regular asset, AND there was a system error that doubled-counted some of our income. They're having me submit a correction form and said my daughter's Pell Grant amount should increase significantly once it's processed. Thank you all for your helpful suggestions!

Wow, thank you so much for sharing this update! This is incredibly helpful for anyone else who might be dealing with similar FAFSA issues. It's crazy how multiple small errors can compound to create such a big discrepancy in the SAI calculation. The fact that there was also a system error that double-counted income just shows how buggy the new FAFSA system has been this year. I'm so glad you persisted and didn't just accept the initial calculation. This is a great reminder for everyone to carefully review each section of the FAFSA and not hesitate to question results that don't seem right. Hope the correction gets processed quickly so your daughter can get the full Pell Grant she deserves for fall semester!

I just wanted to add one more thing that might help - when you're gathering documentation, make sure you also have records of any untaxed income you might have received in 2023. This could include things like assistance for your mother's care, any cash support, or other benefits that didn't require tax filing. The FAFSA will ask about untaxed income separately from your tax filing status, so even though you didn't file taxes, you'll still need to report any income you received that year. This ensures your daughter's aid calculation is as accurate as possible and helps avoid issues during verification. Also, don't stress too much about the complexity of your situation - financial aid offices deal with non-traditional families all the time, and they're usually very helpful once you get connected with the right person. Good luck with everything!

One more tip that might save you headaches down the road - when you submit your FAFSA, screenshot or print every page before you finalize it. I learned this the hard way when my daughter's school asked me to verify information I had entered, but I couldn't remember exactly what I had put down for certain questions. Also, if your daughter ends up getting selected for verification (which is pretty common), don't panic! It's usually just routine and doesn't mean you did anything wrong. Just be ready with all your documentation and respond quickly to any requests from the financial aid office. Your situation is definitely manageable - you've got great advice from everyone here and it sounds like you're being thorough about getting everything right. Your daughter is lucky to have someone advocating for her education like this!