Free Application for Federal Student Aid Is Undergoing Major Changes
The Free Application for Federal Student Aid (FAFSA) is undergoing significant changes for the 2024-25 academic year, making the process easier and the benefits more generous. “Fafsa Changes Are Coming. Here’s What You Should Know.”, published by The Wall Street Journal summarizes the major changes, noted below:
DELAYED AVAILABILITY: The new FAFSA will be available in December instead of the usual October 1st opening, due to extensive changes. The regular schedule is expected to resume next year.
SIMPLIFIED PROCESS: The new FAFSA will have fewer questions and allow more families to have their financial information directly transferred from the IRS, reducing the need for income verification and delays in aid disbursement.
END OF “EXPECTED FAMILY CONTRIBUTION”: The term, Expected Family Contribution (EFC), will be replaced by the Student Aid Index for determining aid, with the intention of eliminating confusion for families.
MORE AID FOR LOW-INCOME FAMILIES: The federal Pell Grant will now consider family size/poverty level, making an estimated 555,000 more students eligible, with an estimated 1.7 million more students receiving the maximum Pell Grant award.
INCOME REPORTING THRESHOLD RAISED: Families with adjusted gross income below $60,000 (previously $50,000) won't need to report their assets for aid determination.
FORMULAIC DIFFERENCES: A family's ability to pay will no longer be divided per child, potentially increasing tuition responsibility for each student. Sibling discounts for federal aid are disappearing, affecting middle/higher-income families.
ASSET-CONTRIBUTION CHANGES: Reporting net worth of all businesses is required, family farms included. The value of the primary residence is still excluded.
CHANGES FOR PARENTS: FAFSA duties for unmarried, divorced, or separated parents will now fall on the parent who provided the most financial support during the previous 12 months.
OTHER TWEAKS: Students will only see questions relevant to them when logging in. They can list up to 20 colleges on the FAFSA instead of 10.
PREPARATION: Families new to the financial-aid process should create a unique FSA ID on https://studentaid.gov for both students and parents, which will be used for filing the FAFSA and other financial aid-related tasks.
These changes aim to simplify the FAFSA process, increase aid accessibility, and reduce confusion for students and families seeking financial assistance for college.
At Omnia Pathways, we believe that paying for college is one of the largest, most significant investments that a student and their families make in their lifetimes. We recognize this process is overwhelming and offer assistance in your search for scholarships, grants, and loan opportunities. Please see our Services for more information and schedule a Free Consultation, to help you accomplish your college admissions goals.
Citation: Munk Winokur, Cheryl. “Fafsa Changes Are Coming. Here’s What You Should Know.” Wall Street Journal, 31 August 2023, Fafsa Changes Are Coming. Here’s What You Should Know. - WSJ