Learn more about key steps you should take from Coalition member SecureFutures

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Right now, millions of high school seniors are thinking about how to afford college, career school or trade programs. The single most important step to make college affordable is to fill out the Free Application for Federal Student Aid (FAFSA).

And yet, each year, millions of students leave money on the table simply because they don’t complete this important step. The high school class of 2023 alone missed out on more than $4 billion in Pell Grants—funds that don’t have to be repaid. Here in Wisconsin, just 28% of seniors have taken this step as of February 7, 2025. FAFSA is about much so much more than loans: scholarships, institutional aid, promise programs and many other kinds of aid require the FAFSA. For students from under-resourced communities, this missed step can widen the opportunity gap, leading to more student debt or even preventing students from attending college altogether.

Luckily, Wisconsin students have help for financial planning well before the FAFSA.

SecureFutures’ Money Path tool helps students map out their post-high school journey, ensuring they make informed financial choices. Money Path gives students a powerful, no-cost, real-life tool to make personalized, financially-informed decisions for life after high school. Whether they need help making smart decisions about student loans, creating a monthly budget based on their career, or planning for long term financial goals, Money Path helps students see and realistically plan for their futures.

Why financial planning before completing the FAFSA matters

The FAFSA is an essential tool for unlocking financial aid, but it doesn’t answer the bigger question: How much will I actually need for my education, and what options make the most sense for my future? Money Path helps students explore these answers early, making the FAFSA process smoother and more strategic.

Financial planning shouldn’t start with the FAFSA—it should start with a clear understanding of what education and career choices will mean for a student’s financial future. Money Path empowers students to make confident, informed decisions about their next steps so that by the time they fill out the FAFSA, they already know what they need and why.

With Money Path, students can:

• Compare the cost of in-state vs. out-of-state schools, two-year vs. four-year programs, and even trade schools. Money Path can help estimate students’ financial aid eligibility at various schools based on family income.

• See how different career paths impact their future salary and student loan repayment.

• Factor in living expenses, scholarships, and family contributions to create a full financial picture.

• Adjust their plan over time, ensuring they stay on track each year when completing the FAFSA.

Once you’ve made that financial plan through Money Path, don’t forget to complete the FAFSA!

Five steps to a FAFSA-ready future:

1. Create a free StudentAid.gov account. Students and their parents (if student is dependent) will need to create a student account (formerly known as an FSA ID) before filling out the FAFSA. This step takes just a few minutes but verification can take a few days, so it’s best to start early.

2. Gather financial information. The new, simplified FAFSA will retrieve much of this information directly from IRS tax returns. As a backup, students and parents should have access to their 2023 tax returns, W-2s, and other financial documents. 

3. Make a list of schools. Now, you can list up to 20 schools to receive your FAFSA information. There’s no drawback to listing every school under consideration, even if they haven’t applied yet. Money Path can help narrow choices by comparing tuition, cost of living, and potential student loan needs.

4. Parent Information. Dependent students will need to have on hand certain demographic information for their parents, including stepparents in certain situations. You can find more details on this on the StudentAid.gov website: https://studentaid.gov/apply-for-aid/fafsa/filling-out/parent-info

5. Avoid common mistakes: Leaving fields blank, using incorrect numbers, or forgetting to sign the form can delay aid. Money Path helps students prepare in advance, reducing errors and maximizing their financial aid potential.

How to Take Action on Building Financial Success Before College

1. Schedule a 15-minute live demo of SecureFutures’ Money Path tool to learn how you can bring this essential tool to your Wisconsin school. https://moneypath.securefutures.org/ 

2. Register for an upcoming, free virtual FAFSA completion event at https://lu.ma/fafsahelp , or book a 1:1 free, virtual help session with Coalition member Fair Opportunity Project. https://www.fairopportunityproject.org/fafsa-help 

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About our Coalition Members:

SecureFutures, founded in 2006, equips teens with money management skills, tools, and mentoring so they can achieve financial capability, reach their goals, and strengthen their communities. SecureFutures is a leader in teen financial literacy with programs that have impacted more than 112,000 teens.

Fair Opportunity Project serves students in Wisconsin and nationwide with free FAFSA help, college application essay review, and personalized virtual mentoring. 

In recent months, national journalists and academic leaders have discussed a waning confidence among some Americans in the value of a college education (see examples in The New York Times Magazine, The Wall Street Journal, and The Atlantic). Rising sticker prices at both public and private institutions and student loan debt increasingly are raising questions about whether the benefits of a college degree outweigh the costs.

Labor market projections examined by the Wisconsin Policy Forum provide a helpful perspective. The Forum, a member of the Wisconsin Coalition on Student Debt, examined data from the state Department of Workforce Development’s long-term occupational employment projections for 2020 to 2030 to see what education and skills are needed for the jobs of the future. 

Looking at jobs that currently pay median wages of $50,000 or more a year, 58.1% of those jobs opening each year through 2030 will be in occupations that typically require a bachelor’s or advanced degree for entry. Another 5.9% require an associate degree or postsecondary non-degree award, such as a certificate or technical diploma from a community college.

Looking at occupations that currently pay a median wage of $75,000 or more annually, 91% of the projected openings in those jobs will require a bachelor’s or advanced degree. For more on this topic, read the Forum’s brief.

It’s tax season, and if you have student loans, you probably have questions. Here are some resources with answers to common questions. 

First, let’s talk about the student loan interest deduction, which is reported on Form 1098-E. Servicers of both federal and private loans are required to send these forms to all borrowers who paid $600 or more in interest on their loans in 2023. A servicer may send this to borrowers who paid less than $600, and if you had more than one servicer in 2023, you could receive multiple forms. The interest total includes capitalized interest, which may occur for various reasons, including if you consolidated or refinanced your student loans in the last year. A borrower can take the Student Loan Interest Deduction even if they did not receive a Form 1098-E from a servicer, they just need to calculate the interest they paid on their own. The maximum deduction is $2,500 per year, and it phases out as income increases. This is an “above the line” deduction so it has the added benefit of potentially lowering a borrower’s Adjusted Gross Income (AGI), great for borrowers on Income-Driven Repayment (IDR) plans who have monthly payments based on their AGI. This deduction is not available to borrowers who are married but file their taxes separately. 

Next let’s cover tax filing for married couples. If a borrower is repaying their student loans under an IDR plan and they are married, the “income” used to calculate their monthly payment can change depending on how they file. “Married Filing Jointly” typically accesses more tax advantages than “Married Filing Separately,” but filing separately can shield one spouse’s income from being part of the monthly payment calculation under an IDR plan. This is a highly individual consideration, and while there are numerous calculators out there to help borrowers decide what works best for them, a borrower may need to consult a tax professional or input but not submit their tax information under both filing statuses to compare figures and benefits. 

Lastly, let’s discuss taxable student loan discharge or forgiveness. The Biden administration has been discharging or forgiving a lot of student loans under several different programs and provisions. Which program your loan is discharged or forgiven under may matter for how the federal and state tax codes treat the amount forgiven. Generally, forgiven debt counts as income to the borrower, but at the federal level, amounts forgiven under Public Service Loan Forgiveness (PSLF) are always exempt from income, and therefore tax free. Loans discharged under other programs are at least temporarily tax-free at the federal level until December 31, 2025. Most states mirror this federal treatment, but Wisconsin is one of the states that does not. For Wisconsin residents, the Department of Revenue published a helpful FAQ. Borrowers with tax questions should consult with a tax professional.