FAFSA’s redesign is so massive that the deadline for its changes was extended until the 2024-2025 Award Year.
Yep, big changes are coming to FAFSA (Free Application for Federal Student Aid, the government-backed thing that gives you money for college). It might be in your best interest to stay informed—you could be getting more (or less) financial aid.
The Rundown
Streamlined application process
Expanded eligibility for (federal) financial aid
Reduced barriers for some students
More user-friendly application
Let’s jump into some of the facts…
Expected Family Contribution (EFC) is no more. Bring in the Student Aid Index (SAI).
FAFSA’s methodology is changing. The SAI is a different way to gauge each student’s ability to pay for college. This doesn’t tell you how much you’re going to pay; it’s only a way to measure your financial need.
The measurement can range as low as -$1,500. This means that the form will be able to differentiate more levels of need and act accordingly.
FYI: Cost of attendance (COA) – Student Aid Index (SAI) = Financial Aid
Having a sibling in college at the same time as you won’t matter anymore.
Yeah, this part kinda stinks. Until this change is put into effect, families will continue getting discounts if siblings are enrolled in college at the same time. After the remodeling, this discount will get the boot.
On the bright side, you could be a part of the extra 15% of students expected to receive the Pell Grant.
That’s right, they’re modifying the Pell Grant criteria and say that it’ll increase the recipient number by about 930,000. Eligibility for the grant will be linked not only to household income, but to family size and the federal poverty level.
You won’t have to answer as many questions.
For the most part, anyway. The government’s trying to make it easier for you to fill out, so they’ve reduced the number of questions you’ll have to answer. Even with certain circumstances requiring FAFSA to get more info from you, your overall time with the form should shrink.
But you will be asked about your race, ethnicity, and gender.
A data survey will now be attached to the application to ask you about parts of your identity. These questions won’t affect your financial aid package, and you can decline to answer them if you’d like.
Colleges have to include more types of expenses in the cost of attendance (COA) that gets reported.
The new FAFSA policy expands the types of expenses that a university throws into their COA. This rule will have them include:
Tuition and fees
Books, course materials, supplies, and equipment
Transportation between campus and home or work
Personal expenses
Living expenses (food and housing)
Additionally, it might include: student loan fees, dependent care, disability expenses, study abroad, remote instruction, correspondence and experiential learning programs, and professional credential or license costs.
It’s not necessarily the end all, be all. You can talk to the financial aid office at your school.
Everyone’s situation is different, and not all of them can be judged fairly by the FAFSA form. So, the new changes are giving financial aid professionals more flexibility when it comes to adjusting a student’s eligibility for aid.
They can do this by adjusting: (1) the COA, (2) the student’s dependency status, (3) the components that determine Pell Grants, or (4) all of the above.
All of the policies and procedures associated with this “professional judgment” on behalf of the colleges will be made public.
We know, it’s a lot to take in. And technically, we didn’t even cover some of the nittiest and grittiest details here. Don’t worry, we’ll keep you posted on everything as it rolls out.
In the meantime, you can review the timeline of FAFSA’s makeover on Twitter:
