For students preparing to apply for financial aid, the Free Application for Federal Student Aid (FAFSA) is a crucial part of the process. With recent changes to the FAFSA process, it’s important to stay informed about what’s going on. This can help to maximize your eligibility for aid and financial aid funding. Here’s a breakdown of the top 5 changes to the FAFSA this year that you should know about:
1. A Major Overhaul
One of the most noticeable changes is the reduction in the number of questions on the FAFSA form. Previously, there were over 100 questions. Now the form has been streamlined to just 36 questions, making it easier and faster to complete. This change is designed to improve accessibility for all students and reduce barriers to financial aid.
2. Elimination of the Expected Family Contribution
Perhaps the most significant change for students and families is the replacement of the Expected Family Contribution (EFC) with the Student Aid Index (SAI). The SAI, which replaces the EFC, is a more accurate and fair way to calculate need-based financial aid, especially for students from low-income backgrounds. This change also includes a more flexible approach to family circumstances and eliminates some of the complexities that were previously a barrier for many applicants.
3. Changes to Dependent Status Criteria
This year, there are new rules for determining whether a student is considered a “dependent” or “independent” student. The old system used a series of questions to determine dependency status, but now the criteria have been expanded. The new rules clarify which students can qualify as independent, particularly those who are veterans, married, or emancipated minors.
4. Increased Pell Grant Eligibility
The FAFSA changes also come with an expansion of Pell Grant eligibility. The maximum Pell Grant award has increased, and more students will qualify for this need-based aid. This is especially beneficial for low-income students who rely heavily on Pell Grants to fund their education. With adjustments to the income thresholds and the elimination of some outdated criteria, more students will receive the full Pell Grant award. Hopefully this makes higher education more affordable!
5. The Introduction of Prior-Prior Year (PPY) Income Reporting
The change to the reporting of income on the FAFSA, known as Prior-Prior Year (PPY), allows students to use tax information from two years prior, rather than one. This adjustment allows families to file the FAFSA earlier in the academic year and ensures that students can access financial aid information sooner. This change has already been in effect for several years but remains important, as it helps streamline the process and allows for quicker processing of financial aid packages.
These updates can make applying for financial aid more straightforward, but they also require students and their families to stay informed. With simplified forms and earlier access to tax information, it’s easier to submit your FAFSA as soon as possible, which can increase your chances of receiving financial aid.
Submit your application as soon as you can! Good luck!
More about Jodi and College Financial Aid Advisors
Jodi is a FAFSA financial advisor who helps with the financial aid process to help families of college students maximize their financial aid. From completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options, Jodi is a fantastic resource when it comes to student financial aid. Schedule a 15 Minute Power Chat to learn more about finding ways to pay for college.