The Earnest Blog > For Students, Paying for College
How to get financial aid if your parent’s income is too high
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TL;DR
There is no official income limit for the FAFSA, and even though your parent’s high income may reduce or eliminate your eligibility for need-based aid, you should still apply.
If federal aid doesn’t cover the full cost of your educational expenses, consider options like institutional aid, merit-based scholarships and grants, and tuition reimbursement.
Private student loans are also a good way to fill in any funding gaps as they usually come with competitive rates, flexible repayment terms, grace periods, and cosigner options.
Table of Contents
Institutional aid: the funding source most families overlook
Private student loans: when they make sense and what to look for
If your financial aid offer came back lower than expected or you didn’t qualify for much need-based aid because of your parents’ income, you still have options. While federal aid may be limited, there are other ways to help cover the cost of college, including institutional aid, scholarships, and private student loans.
Here’s what you need to know about paying for college when your parents have a high income.
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How does the FAFSA work?
The Free Application for Federal Student Aid (FAFSA) form is a crucial starting point for many students seeking financial assistance. The FAFSA considers various factors, including your family’s income, to determine your eligibility for federal student aid and your financial aid package. There’s no income cutoff that makes you ineligible to file the FAFSA, but higher income generally reduces or eliminates need-based aid.
What the 2026 federal aid changes mean for higher-income families
As a dependent, undergraduate student, the government operates under the assumption that your parents will assist you in paying for your education. They use the updated SAI formula to determine how much your family can afford to pay for the academic year and give out aid based on the calculations.
The One Big Beautiful Bill Act (OBBBA) will impact several types of student aid and borrowing starting July 1, 2026. Here’s what you can expect:
Pell Grant eligibility will be more limited. If your SAI is at or above twice the maximum Pell Grant, you won’t qualify.
Grad PLUS loans will no longer be available, which means grad students may need to consider other ways to finance your education.
Parent PLUS loan borrowing will also be capped at $20,000 per year and $65,000 total per student. If you’ve relied on these parent loans to cover the full cost of attendance, you may need to explore additional options.
Does the FAFSA have an income limit?
Technically, no income is too high for the FAFSA. The U.S. Department of Education recommends filling out the FAFSA yearly, regardless of income. However because FAFSA is needs-based aid, those from lower-income families with a greater financial need get access to more financial aid. That leaves students from higher-income families with fewer options for federal aid.
Additionally, financial aid eligibility is influenced by various factors such as family size, the number of dependents in college, and other considerations. Generally, if your parent’s income exceeds a certain threshold, it can affect your ability to receive aid through the FAFSA form.
What’s the point of filling out the FAFSA if my parent’s income is too high?
There are a few good reasons why you never want to skip a FAFSA application. First, all federal aid is on a first-come-first-served basis. Your chances of getting it are different every year depending on how many people apply and when. That’s why you always want to submit your application ASAP. Second, laws and regulations change all the time. You might not qualify one year and receive aid the next.
What kind of financial aid can I expect through the FAFSA?
The FAFSA isn’t just your path to federal financial aid. Many states and universities also use what’s in your FAFSA to determine aid eligibility. When it comes to federal aid, the FAFSA gives you access to:
The federal Pell Grant – for undergraduate students who demonstrate an exceptional financial need.
Federal Supplemental Educational Opportunity Grants (FSEOG) – for undergraduate students with exceptional need but not all schools participate in this program.
Iraq and Afghanistan Service Grants – for students who are not eligible for a Pell Grant and have a parent or guardian who passed away as a result of military service in Iraq or Afghanistan after Sept. 11, 2001.
Teacher Education Assistance for College and Higher Education (TEACH) Grants – this grant requires you to commit to community service or teaching for a period of time.
Direct Subsidized Loans – for eligible undergraduate students.
Direct Unsubsidized Loans – for undergraduate, graduate students, and professional students. Note: these loans have new borrowing limits after July 1, 2026.
Direct PLUS Loans – for grad students, parents, and professional students. Note: these loans are no longer available for new borrowers after July 1, 2026.
Direct Consolidation Loans – for those who have different types of student loans and want to combine them.
Scholarships
Institutional scholarships – scholarships given by the school. Many use your FAFSA answers when determining your eligibility.
Private scholarships – while many of these scholarships do not directly use FAFSA information, you may still be asked for your family income and other financial information similar to the FAFSA form.
What to do when your aid package doesn't cover the gap
Let’s explore how you can get aid if your parent’s financial situation puts you above the federal aid programs’ threshold.
Institutional aid: the funding source most families overlook
In addition to federal aid, many colleges offer institutional aid for the school year. The specific aid package varies from school to school. You’ll want to check with your financial aid office and ask about the programs they offer. Some may have a maximum income similar to federal aid, while others may have academic requirements.
If your financial aid package doesn’t provide you with all the funding you need, here are a few options to explore:
Appeal your financial aid award: If your financial situation has changed since you filed the FAFSA due to an event like a job loss or unexpected medical condition, most colleges will let you submit an appeal letter. To do so, you’ll need to ask your school about its preferred appeal process and support your request with pay stubs, tax stubs, and other evidence that prove your current financial status.
Find out if the school uses the College Scholarship Service (CSS) profile: Your college may consider the CSS Profile in addition to the FAFSA, especially if it’s private. If you learn that it does, it’s a good idea to complete the profile online through a College Board account. It may open the doors to additional funding opportunities that aren’t available through FAFSA.
Ask for a professional judgment review: If your financial situation involves special circumstances, such as high medical bills, that aren’t obvious in your prior-year tax return, financial aid offices may adjust your eligibility. To start the process of a professional judgment review, contact your financial aid office and fill out the appropriate form.
Reach out to the financial aid office directly: Don’t be afraid to contact your financial aid office to explain your situation. They may explain all your options and recommend the next best steps for your unique situation.
Scholarships and grants that don’t depend on financial need
Even if you don’t qualify for need-based financial aid, there are thousands of scholarships and grants available and millions go unclaimed every year. Merit-based scholarships, talent-based grants, and program-specific aid are all potential avenues for financial assistance for students from different backgrounds. You can even find state-specific scholarships to help cover your education costs.
Consider federal work-study opportunities
Look into work-study programs offered by colleges. These opportunities can provide both financial assistance and valuable work experience. Some schools even offer tuition discounts and since the university sponsors these jobs, they are flexible when it comes to class schedules.
Look into tuition reimbursement
Tuition reimbursement is becoming a popular workplace perk in many companies. Find out if your or your parent’s employer offers tuition reimbursement programs and take advantage of them. While this benefit is usually meant for the employee, some may cover their children or dependents.
Evaluate community college and transfer options
Attending a community college to complete your general education (GEs) can be a cost-effective alternative. It’s a practical way to save money while earning college credits that can transfer to a four-year institution.
Apply for a part-time remote job or freelance
Take a look at flexible remote jobs, such as a proofreader. If you have any specialized skills like making social media videos or building Squarespace websites, you can create a profile on freelance job sites and work with clients on your own time. Another benefit of going this route is you start to build your resume early.
Private student loans: when they make sense and what to look for
Once you’ve exhausted all financial aid options, a private student loan could be a smart way to cover your leftover costs. It can be particularly appealing if you’re a grad student from a higher-income family as Grad PLUS loans will no longer be an option and you may land a more competitive rate than your remaining federal options.
A private lender differs from the government because it’s a company, and their loans work differently from federal loans. Ideally, you’d find a lender that offers competitive rates, flexible repayment terms, a grace period, and the option to apply with a cosigner.
Fortunately, most lenders, including Earnest, let you check your eligibility with no impact to your credit so you can hone in on the ideal loan for your specific needs.
At Earnest, you can expect competitive rates, no fees1, a 9-month grace period2, and flexible repayment options3. Plus, you may borrow with or without a cosigner and take advantage of automatic cosigner release.
If you didn’t qualify, you're not out of options
Navigating college affordability without FAFSA assistance can be challenging, but not impossible. There are many different types of financial aid outside of federal options, like the thousands of scholarships and grants available to students. By exploring different options you can create a financial plan that works for you.
Our award-winning Client Happiness Team is here to answer any questions or offer any personalized guidance you might need. To get started, check your eligibility with no impact to your credit.
Next Steps Checklist
File the FAFSA even if you think you won't qualify.
Contact the financial aid office to discuss appeal options.
Search for merit and program-specific scholarships.
Compare private loan options before the semester starts.
Apply for private loans early — certification can take weeks.
Frequently Asked Questions (FAQs)
Can I get financial aid if my parents make $100,000?
Yes, you may still get financial aid if your parents earn a six-figure income. While your need-based aid options may be limited, you should still complete the FAFSA. You might also qualify for merit and program-specific scholarships as well as private student loans.
Should I fill out the FAFSA even if my parents are high earners?
Yes, it’s a good idea to complete the FAFSA even if your parents have a high income. You might still qualify for federal aid in the form of federal loans, work-study opportunities, or school-specific scholarships.
When does FAFSA stop considering my parents’ income?
Your parents’ income will no longer count when you’re an independent student. To reach this status, you must be at least 24 years old, married, or a graduate student. You may also be independent if you’re a veteran or have dependents.
About the Author
Sasha Bulatskaya
Sasha is the Senior Manager of Brand and Content at Earnest. She has been writing for ten years and has been focused on educational finance and financial aid for over three. Her passion for mission-driven companies brought her to Earnest in 2020, and she's been helping make student finance more accessible ever since. She strives to demystify personal finance and student loans to help borrowers make the best decisions for their financial situation.
Disclaimer
This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice. It is accurate as of its publishing date.
Earnest Private Student Loans are subject to credit approval.
Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grants, and work-study opportunities. 2) Next, fill out a FAFSA® form to apply for federal student loans options. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at studentaid.gov.
1 Earnest does not charge fees for origination, late payments, returned check, or prepayments. Florida Stamp Tax: For Florida residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. The lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No. 78-8016373916-1.
2 Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.
3 Repayment terms and repayment options available vary based on loan type.