Students and their families frequently experience stress and disorientation when completing the Free Application for Student Aid (FAFSA), but efforts are underway to make college aid more accessible.
However, this may impact the eligibility of students for federal aid, and some may end up paying more.
FAFSA Release
The Department of Education has announced that a new, streamlined FAFSA will be released in December 2023 for the 2024-2025 school year. In 2020, Congress passed the FAFSA Simplification Act, which seeks to reduce the number of questions on the FAFSA form and make it simpler to obtain Pell Grants and other federal student assistance.
The new FAFSA modifies how students and their families apply for and are determined eligible for federal student aid.
According to the ED, this includes a direct data exchange with the IRS for income data details, a new “Who’s My Parent?” wizard, and a centralized portal for all FAFSA assistance resources.
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Federal Aid For Students
Students will have access to more federal aid, but according to USA Today, a recent analysis by the Brookings Institution found that students with siblings attending college will likely lose some aid.
The Brookings Institution stated, “These changes, along with others, will have significant effects on students’ eligibility for financial aid.” “There will be winners and losers,” and those students who may end up paying more “are unlikely to know that these changes are coming.”
According to EconoFact, a publication that analyzes economic and social policies, students with the lowest incomes will not be affected; however, Pell Grants will be reduced for individuals or their parents with incomes between $60,000 and $100,000.
This is a result of the eradication of the “sibling discount,” which reduced the expected family contribution for families with multiple children enrolled in college.
The new formula does not account for siblings, and EconoFact estimates that the amount of aid eligible to these pupils could be reduced by thousands or tens of thousands of dollars.
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