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I saw that the FAFSA opened this week, but I feel like we make too much for financial aid. We’re right around $125,000 a year and our daughter is a senior. Every time I bring it up, someone tells me not to bother.
Should we even still fill it out?
— Rick
Welcome to the Friday mailbag, where we take one reader question and answer it. Have one? Send it to us — details at the bottom.
The Short Answer
File it, and file it now while the form is open early. It’s important to note that the FAFSA is the application for financial aid. It, by itself, does not really unlock anything except for a federal Pell Grant and federal student loans. The application then goes to state grant and scholarship agencies and the universities, where larger dollars of financial aid are found.
At $125,000 you’re in the range where families most often assume they’re disqualified and most often turn out to be wrong, especially depending on the schools you’re looking at. There’s also a chance your state requires it for her to graduate.
The FAFSA itself takes about 10-15 minutes – and we call it the best free lottery ticket for higher education. Don’t leave potentially free money on the table.
The FAFSA Opened Early This Year
The 2027-28 form went live this week, ahead of the usual October 1 date, in what the Department of Education is calling the earliest launch in the program’s history for the second consecutive year.
Under Secretary Nicholas Kent said the form now takes about 15 minutes on average to complete.
Filing early is worth actual money rather than just peace of mind. State grant programs and institutional financial aid funds are frequently awarded until they run out, so families who file early can be ahead of those waiting. Our FAFSA deadline rundown lists the federal, state, and school dates, and the state ones are usually the ones that bite.
An early application also gives you time to fix problems. A mismatched FSA ID, a verification request, or a correction can take days or weeks, and having that happen in October rather than February is the difference between an inconvenience and a missed deadline.
There Is No Income Cutoff
Remember, the FAFSA is just the application. There is no income cutoff and nobody is turned away from making too much.
Each individual financial aid program has it’s own rules, which is where the confusion starts. Pell Grants have real income limits tied to the federal poverty guidelines, and people generalize from Pell to the entire system. But Pell Grants cap at $7,395 per year, and are generally the smallest dollar amount of financial aid awarded.
Our breakdown of FAFSA income limits covers why families well into six figures still file and still receive aid.
Income alone doesn’t produce your Student Aid Index either. Family size and assets both move the number, which is why two households reporting the same salary can have two different results. Running your own figures through our SAI calculator takes a few minutes and tells you more than any rule of thumb about income ever will.
What decides need is your SAI measured against a specific school’s cost of attendance, not your salary considered in isolation. At a college charging $88,000 a year, a family at $125,000 frequently shows demonstrated need. Meanwhile, at an in-state public charging $28,000, the same family may not. A truth most families miss is that if you are relying on financial aid, most state schools won’t help you – you need to look at private colleges.
Our explanation of what counts as a good SAI puts the number against real sticker prices.
Your State May Require It
In the last few years, a number of states have actually started requiring high school seniors to fill out the FAFSA. Depending on your state, you may need to fill it out or request a waiver.
The count has moved around as legislatures have added and repealed these rules, but currently 12 states require it. Most of these policies include an opt-out waiver a parent can sign, which means the requirement rarely traps anyone, but discovering it in May of senior year is a worse experience than handling it in October.
Even where it isn’t mandatory, some districts and high schools track completion rates and build counseling around the form. A senior whose family skipped it can end up outside a process her classmates are being walked through.
What You Give Up By Skipping It
Federal student loans run entirely through the FAFSA, and the FAFSA is the application. Skipping the form means your daughter borrows privately or not at all, giving up the fixed federal rate, income-driven repayment, and access to student loan forgiveness programs she may want in fifteen years.
That single consequence outweighs the twenty minutes the form takes, and we cover it alongside several other reasons to file regardless of income.
Institutional aid is the larger piece and the one families underestimate. Many colleges require a FAFSA on file before awarding their own grants, and some attach merit scholarships to it even when the award has nothing to do with need. A school can’t pull money for your daughter from a fund that requires a form she never submitted.
State grant programs frequently use FAFSA data as well, and several states set parameters considerably above the federal ones.
What Changed Since The Last Time You Heard About This
Advice from parents whose children enrolled a few years ago may point in the wrong direction now. The FAFSA Simplification Act rebuilt the formula, replaced the Expected Family Contribution with the Student Aid Index, and shifted where various thresholds fall.
A GAO review found the overhaul added roughly 1.9 million students to the Pell Grant rolls, while separate rule changes have moved where the middle-class Pell cutoff sits. Neither is likely to reach a household at $125,000, but both explain why secondhand advice about who qualifies has aged badly.
The 2027-28 SAI chart shows where your income actually lands under the current formula, which is the fastest way to replace a guess with a number.
What To Do This Week
Create FSA IDs for your daughter and one parent first. If you have to verify your identity, it can add several days to the process.
Gather the tax return the form pulls from, along with current balances for any accounts you’ll report. Knowing which assets count and which are excluded matters more than filing fast, and a miscategorized asset is the most frequent reason a family’s number comes back higher than it should.
Submit in the next few weeks rather than waiting for spring. The early opening is only an advantage if you use it, and the funds awarded on a rolling basis go to families who file first. Our recommendation is to complete the FAFSA before Thanksgiving.
Keep your documentation together in case you’re selected for verification. It’s a routine sampling process rather than an accusation, and families with paperwork ready clear it in days.
Where People Get This Wrong
The most expensive mistake is treating the FAFSA as a means test you either pass or fail. It’s an application for access, and most of what it unlocks for a family at your income has nothing to do with demonstrated need.
Another is assuming an SAI number is the definitive answer. Colleges build their own awards on top of the federal figure, and two schools with identical sticker prices routinely produce packages that differ by tens of thousands of dollars.
The last one is letting a neighbor’s experience decide it. Financial aid depends on your household, the school, and the year, and someone else’s outcome three years ago tells you very little about yours.
Send Us Your Question
Got a student loan, financial aid, or money question you can’t get a straight answer on? Send it to us and we may answer it in a future Friday mailbag.
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Reader Mailbag
Have a question for us? Ask away. Questions submitted may appear articles on The College Investor. We may not answer every question. We reserve the right to edit and publish your questions. But don’t worry — your identity will remain anonymous.
Editor: Colin Graves
The post We Make Too Much For Financial Aid. Should We Still File The FAFSA? appeared first on The College Investor.
The initial public offering (IPO) of Space Exploration Technologies(SPCX +0.44%) was a worldwide spectacle. The anticipation was intense as Elon Musk sold shares in the company to the public for the first time. SpaceX, as the company is more commonly known, raised $75 billion from the IPO, with the underwriter’s overallotment bringing the total to more than $85 billion. A lot of insiders got rich, but there’s a catch that could keep the stock rangebound through at least December. Here’s what you need to know.
How much does a share of SpaceX go for?
The IPO price for SpaceX was $135. But when the shares opened, the stock started trading at $150. Given all the excitement around the company’s IPO, it isn’t surprising that the stock quickly jumped, peaking at just over $200 per share. But once the enthusiasm faded, it crashed to $108. That’s not exactly shocking, with the stock now back in the $150 range.
Image source: Getty Images.
Investors are emotional, so there’s no telling what will happen with SpaceX stock. That said, there’s an interesting headwind that investors need to understand. The insiders who got rich during the IPO are likely only rich on paper, because insiders generally aren’t allowed to sell their stock right away. They are subject to lockup periods. In this case, insiders will be able to sell shares on various dates through December 2026.
Space Exploration Technologies
Today’s Change
(0.44%) $0.65
Current Price
$148.68
Key Data Points
Market Cap
$2.0TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.
Day’s Range
$146.00 – $149.67
52wk Range
$104.83 – $225.64
Volume
54.6M
Avg Vol
93.4M
A lockup doesn’t change the number of shares that exist, but may increase the number of shares that freely trade on the market. That means that investors have to absorb more volume, which often puts downward pressure on a stock’s price. This isn’t unusual at all, as lockup periods are normal fare with initial public offerings. Only SpaceX’s record-setting IPO clearly wasn’t a normal IPO. Anything that Elon Musk touches seems to get extra investor attention.
Should you sell while the stock is back at the IPO price?
If you are a long-term investor and believe SpaceX is a leading, if not THE leading, space stock, you probably shouldn’t sell it. However, if you are a short-term trader who bought into the hype surrounding the IPO, thinking that the stock would rocket to the moon, you might want to consider selling it now that it is back in the $150 range. Indeed, insiders who want to turn their paper profits into realized gains will need to sell their shares, which could be a major headwind for SpaceX’s stock at least through late 2026.
Welcome to Music Business Worldwide’s Weekly Round-up – where we make sure you caught the five biggest stories to hit our headlines over the past seven days. MBW’s Round-up is exclusively supported by BMI, a global leader in performing rights management, dedicated to supporting songwriters, composers and publishers and championing the value of music.
This week, Warner Music Group announced a leadership shake-up, with Val Blavatnik joining the company, Elliot Grainge taking on an expanded role at ADA, and Simon Robson set to exit after nearly 30 years with the company.
Meanwhile, Suno confirmed that its v6 model was trained in part on user ‘creations’ as it hit back at a fresh copyright lawsuit from Universal Music Group and Sony Music Entertainment.
Elsewhere, MBW delved into Universal Music Group’s lawsuit against DistroKid – including the revelation that over 50% of one major streaming service’s tracks were supplied by the DIY distributor.
Also this week, Carianne Marshall is set to exit her role as Co-Chair and COO of Warner Chappell Music, while Sony Music Group became the first music company to join ARIAM, an AI policy coalition alongside Disney, the BBC and The New York Times.
Here are some of the biggest headlines from the past few days…
1. Warner Music Group Shake-Up: Val Blavatnik joins, Elliot Grainge adds ADA, Simon Robson exits
Warner Music Group has announced a string of changes to its global leadership team, which the company says will drive its “next phase of growth.”
Coming in: Val Blavatnik joins the WMG executive team in the new role of Managing Director, Warner Music North America, UK, & Corporate Development.
As that job title suggests, it’s understood that Blavatnik will now lead Warner’s recorded music operations across the US, Canada, and the UK. (MBW)
2. Suno confirms V6 model was trained on ‘creations’ from users, as it blasts latest Sony and Universal lawsuit
Suno has said its v6 AI music models were trained in part on “creations” made by its own users on the platform.
The company set out that description in a statement responding to a second copyright lawsuit filed on Friday (September 18) by Universal Music Group and Sony Music Entertainment in Boston federal court, where the labels’ original case against the company is already being heard.
Suno said v6 was trained on “interactions including creations and preference signals” from its community. (MBW)
3. Over 50% of a major streaming service’s tracks come from DistroKid – and other revelations from UMG’s lawsuit
Universal Music Group‘s complaint against DistroKid, filed last week, runs to 52 pages.
It accuses the DIY distributor of “deceptive trade practices and blatant copyright infringement”, and of flooding streaming services with AI-generated “slop.”
The suit runs on two separate theories: (i) four counts of copyright infringement, which reach tracks that copy UMG recordings, and (ii) one count under the Delaware Uniform Deceptive Trade Practices Act, essentially accusing DistroKid of distributing “AI slop” under the guise of music made and recorded by actual humans. (MBW)
4. Carianne Marshall to exit Warner Chappell Music
Warner Music Group has announced that Carianne Marshall is to exit her role as Co-Chair and Chief Operating Officer of Warner Chappell Music (WCM), the global music publishing arm of WMG, at the end of this month.
A WMG media release said Marshall’s exit comes as the company “streamlines its leadership structure.”
WCM CEO Guy Moot will become the sole chair of WCM, effective October 1. Marshall will remain with the company through the end of the calendar year. (MBW)
5. Sony Music Group becomes first music company to join AI policy coalition ARIAM – alongside Disney, the BBC, and The New York Times
Sony Music Group has joined the Alliance for Responsible Innovation in the Arts & Media, the AI policy coalition better known as ARIAM.
It is the first music company to join the group, which launched in June 2026 with members drawn from film, television, journalism, publishing, education, and technology.
The announcement was made on Wednesday (September 23) by Victoria Furniss, ARIAM’s Executive Director and CEO. (MBW)
Partner message: MBW’s Weekly Round-up is supported by BMI, the global leader in performing rights management, dedicated to supporting songwriters, composers and publishers and championing the value of music. Find out more about BMIhere. Music Business Worldwide
He said the challenge is to keep pushing forward even when everyone around a broker is hitting them with negativity.
“Your family is like, ‘Oh, I heard interest rates are high.’ And what are you supposed to be like? ‘Yeah, it’s awesome,’” Ishbia said sarcastically. “Because they want to commiserate. Ninety percent of people, they like negative things. They like to talk about the bad because the bad is what’s fun to talk about, because nobody wants to talk about the good, which is ridiculous. Be different. Think differently. Be positive all the time.”
Desmond P. Smith, EVP and chief growth officer at UWM, told Mortgage Professional America that the rate environment itself was beside the point.
“When I first started in the early nineties, rates were in the high nines,” Smith said. “But most of these people have never experienced that. And guess what? The market kept going. The market will keep going. People will continue to buy houses. People need cash out. I think credit card debt is at the highest level. People need cash out to improve cash flow.”
He said the market’s direction has never been something originators could control in the first place.
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What separates successful long-term investors from everyone else?
In this episode of Let’s Mint Money, Neil Borate speaks with Soumya Rajan, Founder & CEO of Waterfield Advisors, about the principles that have guided some of India’s wealthiest families through changing market cycles.
Drawing on decades of experience in wealth management, Soumya explains why asset allocation matters more than stock picking, why every investor should think about global diversification, and why she remains optimistic about India’s long-term growth story despite global uncertainty.
Presented in association with @WaterfieldAdvisorsHQ, Let’s Mint Money is a candid conversation series where Neil Borate, explores the personal finance philosophies of India’s most accomplished corporate leaders, entrepreneurs, and family business visionaries. From money mistakes to legacy planning, each episode reveals the real stories behind wealth, risk, and values. To know more about Waterfield, visit
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Based on both research and industry experience, five capabilities appear to distinguish advisers who improve investor outcomes from those who simply facilitate transactions. These five capabilities work together to create what I call, “The Adviser Effect.”
The Adviser Effect describes the influence advisers exert on investor behavior, decision-making, and ultimately investor outcomes. This shifts the conversation from products and recognizes that investment success is not determined solely by what investors own, but by how they behave, how they decide, and who guides them along the journey.
1. Creating Understanding Investors cannot make good decisions about investments they do not understand. Great advisers simplify complexity. They translate technical concepts into language investors can understand. They focus on clarity rather than sophistication. Understanding reduces uncertainty, builds confidence, and supports better decision-making.
2. Managing Investor Emotions Market volatility is inevitable and investor panic is common. During periods of uncertainty, advisers often serve as emotional stabilizers. They help investors maintain perspective and remain focused on long-term objectives. Helping a client avoid a panic-driven decision during a market downturn may create more value than any portfolio adjustment. This makes behavioral coaching one of the most important skills in modern financial advice.
3. Connecting Investments to Goals Investors do not buy mutual funds. They buy retirement security, education funding, financial independence and peace of mind. The most effective advisers help investors connect every investment decision to a meaningful life goal. When investors understand why they are investing, they are more likely to remain committed during difficult periods.
4. Building Trust Through Transparency Trust is the foundation of every successful adviser-client relationship. Investors do not expect certainty. They expect honesty. Trust develops when advisers communicate openly about both opportunities and risks. Advisers who explain risks before problems arise build stronger relationships and create more resilient clients.
5. Ensuring Suitability A suitable product with moderate returns is often better than an unsuitable product with higher expected returns. Effective advisers ensure recommendations align with an investor’s goals, risk tolerance, investment horizon, liquidity needs, and level of understanding. Suitability protects investors and improves outcomes.
The most important number in the economy has hit its highest level since 2007, and Wall Street can’t decide if it’s good or bad.
That number is the 10-year Treasury yield, the interest rate that the U.S. government pays to borrow money for a decade and which almost every other loan in the country is predicated off of. It hit 5.21% on Friday and the average 30-year mortgage rate jumped to 7.45% alongside it; car loans, credit cards, and business loans will follow.
This happened after the Federal Reserve raised rates last week, its first hike since 2023, to cool off the economy, with markets seeing roughly 70% odds of another hike in October.
Bonds kept selling off, and Wednesday’s auction of five-year treasuries drew the weakest demand since 2018.
Whether that’s a problem, though, depends on why it’s happening. Yields can rise mostly off of two reasons: because the economy is booming or because investors are losing their taste for U.S. debt. Economists are split on which one this is.
What even is a bond?
It’s helpful to go back to the basics of bond dynamics. A bond is an IOU; when you buy a Treasury, you lend the government money, and it pays you interest on that loan. That rate of interest is the bond yield.
The yield moves with demand; when fewer investors want to lend, the government has to give a higher rate to find buyers. And because lenders base the price of mortgages, auto loans and the like off of the government’s rate, everyone’s borrowing costs rise with it.
That trades off with other things like stocks, too. If a risk-free government bond can pay you 5%, investors might demand a better reason to own riskier stocks, and might pay less.
Yields for 10- or 30-year bonds price in what investors expect the Federal Reserve to do over the long term. If you think the Fed will hold rates at around 4% for years, you won’t lend to the government for 10 years at anything less than that, because you might as well just buy short term bonds and keep rolling it over.
Yields also price in the “term premium”, the extra pay that investors demand for tying up their money for that long. A lot can go wrong in a decade; there could be a war, inflation could spike, the deficit could balloon, another pandemic could sweep through the economy.
If yields are up because investors expect that the Fed will keep rates high, it’s usually because they expect that the economy will remain strong, with robust profits and investments such that the Fed won’t have to incentivize further growth through cutting. Strong economies mean strong profits, which is when stocks can handle rising yields.
But if yields are up because the term premium is rising, investors aren’t feeling strong about U.S. growth. Rather, they’re demanding more pay to hold U.S. debt, just in case of some risk.
So which is it now? Depends on whom you ask.
The case for Boom
The optimists say yields are rising because the economy is strong and there’s real growth, much of it from AI. The largest hyperscalers are on track to spend nearly $800 billion on capex this year and more than $1.1 trillion in 2027, according to Goldman Sachs, the biggest tech investment cycle relative to GDP since the railroads.
A booming economy pushes up prices, so the Fed raises rates to keep inflation in check, and investors expect it to keep them there for a while.
Matthew Klein, an economics commentator who writes the blog The Overshoot, agrees that the Fed is starting to hike for the right reason: the economy has been running hot for years, and it’s finally getting around to being upbeat on growth and jobs.
Similarly, analysts at Jefferies say the market is “underestimating US equities’ ability to absorb longer-term rates,” pointing to strong, broad earnings growth.
The case for Bust
But the pessimists worry about the term premium starting to climb amid risks that the Fed can’t control.
Start with the debt; Washington is making no effort to rein in the deficit, Wizman wrote, and the war with Iran, now approaching its eighth month, is making it bigger. Every single dollar of that deficit means more Treasuries for investors to absorb, testing the limits of demand in the bond market.
Plus, all that AI spending now exceeds the hyperscalers’ available source of cash, so they’re issuing bonds that compete with Treasuries for investors, in an economy where Americans don’t save that much.
Without a break in AI spending or the Iran war, Wizman wrote, yields “will stay lofty.”
