Handling college tuition for one child can be tough, but with multiple kids in school, it gets trickier. You need to strategize on applications, borrowing, and timing.

This article is part of a paid partnership with Citizens™.

Have you heard about the FAFSA Simplification Act of 2020? This legislation introduces beneficial changes to the Free Application for Federal Student Aid (FAFSA). Key improvements include fewer questions and a more straightforward format. However, a controversial change is the elimination of the formula that divides the expected parent contribution by the number of children in college simultaneously. This means families with multiple children enrolled will see less financial aid, according to College Financial Aid Expert Mark Kantrowitz, who warns that this will affect middle and high-income families negatively.

On the bright side, the rollout of these changes has been delayed by a year, giving families more time to prepare. The new FAFSA will launch in 2023, with the changes affecting the 2024-2025 academic year. So, what can you do to plan effectively?

Create a Target School List

Financial aid comes in two forms: need-based and merit-based. Since merit aid is not repayable, it can significantly lower your overall costs. To maximize merit aid, focus on schools where your child will excel and stand out among applicants.

Plan Financially Years Ahead

Start this process as soon as you complete the FAFSA for the first time. Outline expected expenses for each year and identify potential funding sources. Research net prices rather than sticker prices to get a realistic picture, suggests Christine Roberts, Head of Student Lending at Citizens. Additionally, Citizens offers a free tool called Edmit to simplify scenario planning.

Don't forget to include schools that use the CSS Profile for aid applications. While it also considers the number of students in college, it offers a smaller discount compared to FAFSA.

Mention Multiple Children in Appeals

The legislation allows families to contest their financial aid packages, a remnant of older policies when parents might attend school alongside their children. While there's skepticism about whether colleges will adjust aid based on this, it's worth mentioning if you have multiple kids.

Assess Your Financial Gap

Families with several children in college often face a funding gap between FAFSA aid and total costs, according to Roberts. Once you identify this gap, explore options to cover it, whether through scholarships, current income, 529 withdrawals, or private loans from Citizens.

Be Cautious with Borrowing

Kantrowitz advises a borrowing limit not exceeding your expected first-year salary. For parents, the combined borrowing amount for all children should not surpass your annual family income. If you're nearing retirement, cut that limit in half.