"Later this year, students and their families will fill out a Free Application for Federal Student Aid (FAFSA) that features profound changes. The FAFSA changes a little every year, but courtesy of the 2020 FAFSA Simplification Act, these upcoming changes are bigger in nature and are finally taking effect for the 2024–2025 academic year. It’s the largest FAFSA design overhaul in decades," Collegexpress reports.

... "'Families in the $80,000 range who would have fallen outside of Pell Grant eligibility with one child in college might just dip into that range with two,' says Jill Desjean, Senior Policy Analyst for the National Association of Student Financial Aid Administrators (NASFAA). 'For 2024–2025, they could lose their Pell eligibility.' They may also lose institutional aid. According to the Brookings analysis, 'Students with siblings enrolled in college with a family income of $120,000 may need to pay roughly $10,000 more to attend either a public or private institution.' Even families in the $70,000 range may be negatively affected. Low-income families generally won’t be."

"The more generous SAI formula means more students will qualify for a Federal Pell Grant. Under the old formula, the lowest possible EFC was zero. Now, the new SAI floor is -$1,500, and parents who aren’t required to file a tax return will receive it automatically. The maximum Pell Grant ($7,395 in 2023–2024) is the same regardless of your SAI, but students in the negative could be offered additional state or institutional aid. 'The increased IPA and expanded Pell eligibility are two of the biggest wins of this whole initiative,' Desjean says."

"'The new formula ties Pell eligibility to adjusted gross income (AGI) and family size rather than EFC, which used to be a complicated calculation for families,' she adds."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 7/18/2023