FAFSA stands for Free Application for Federal Student Aid. (Getty Images/iStockphoto)
Change, as we know, is the only constant factor in our lives. This comes as no surprise because it is commonly reiterated within our society. There is no changing the fact that we cannot stop change, but instead must prepare or adapt. True reflection surrounding change should be centered around our preparedness for incumbent changes to our lives, our plans and our financial prospects. As students, one of the most important financial aspects of our lives in college is focused on funding our college experience. For most students, funding college is done through the assistance of financial aid in whatever way it may come . This is why discussing the changes that have been made to the financial aid process is of the utmost importance. This change in policy, alongside the others announced throughout this year, have created room for enlightenment on the path of students. A huge part of the growing pains that come with attaining a higher education degree is financial literacy and understanding the policies that can impact our finances.
The changes made to FAFSA for the school year starting July 1, 2024 through June 30, 2025 were passed by the Consolidated Appropriations Act of 2022. The application process for the 2024-2025 school year will begin no sooner than December 2023 and must be submitted no later than June 30, 2025. The FAFSA form has five sections : Student, Student Spouse, Parent, Parent Spouse or Partner and Preparer. Considerable changes have been made to most of the sections within the form. One of the major changes expands eligibility for federal student aid. This includes more students being Pell Grant eligible and the grant formula being recalculated to make students eligible to receive more funding.
The majority of the updates are about the filing and processing of financial aid. There will be fewer questions to answer on the form, dropping from 108 questions to 46 questions. Applications will also no longer grab information from the IRS without approval of the parties involved. If the parties do not consent, the student’s federal aid cannot be calculated; this is being enforced because of changes of the legislation created by the IRS. Also, students will now have to identify their race or ethnic background; this data is collected only for the use of the Department of Education and will not affect students eligibility for funding.
In the past, dependent students – students who have their parents involved in their financial aid process and are under the age of 24 and are single – used to pick a parent to file with based on who they lived with for the most months in the tax year. Now, dependent students will have to file with the parent who has provided the most financial support within the last tax year. Student can no longer claim additional siblings in college when filing, so the number in college will no longer impact Pell Grant eligibility. Finally the Family Contribution Section will now be called the Student Aid Index.
Changes like this have been known to be made to FAFSA within the span of about five to twenty years. The changes made are to ensure that the filing process is user friendly and that students are getting the financial assistance they need.
