Below is information about the key changes in the Free Application for Federal Student Aid (FAFSA) for 2024:
1. Delay in Release Date
A streamlined version of the FAFSA form has been released for students seeking financial aid for higher education this new weekend, but the Department of Education warns of “some minor issues” in rolling out the new version and that some students may receive less aid than they did previously.
2. Reduced Number of Questions
The new form includes only 36 questions, which is significantly fewer than the 108 questions in previous years, designed to help the Department of Education restructure the lending process and change the formulas used to determine the amount of aid provided to each student.
3. Key Eligibility Changes for Aid
Key changes include no sibling discount, as families will not automatically receive additional aid if there is more than one child in college, and higher- and middle-income families will not be eligible for aid to the same extent due to a change in calculating how much a family can afford.
4. Impact of Inflation
The changes were mandated by Congress in 2020 and although they are being implemented now, this year’s FAFSA will still rely on Consumer Price Index figures from years ago that do not account for current inflation, which may mean that students “will receive less financial aid than they deserve,” an expert told CNBC.
5. Increased Eligibility for Grants
More low- and middle-income families should qualify for Pell Grants than ever before – which do not have to be repaid – and families that cannot afford their children’s education should not face significant changes in eligibility.
6. Other Notable Adjustments
Other adjustments this year include the decoupling of FAFSA from state aid applications, meaning that students in a few states will have to fill out multiple forms to apply for federal and state aid, and creating a federal student aid ID for students and parents may take up to three days, requiring log-in to the FAFSA website.
The federal deadline for completing FAFSA is June 30, 2025, although some states have earlier deadlines.
In conclusion, minor issues that students may encounter while using the new FAFSA form should be monitored, and users may have to endure website outages in the coming weeks while the agency conducts maintenance or fixes issues. The department has warned that the form may not always be available, but any information submitted during the soft launch will be saved and students will have “ample time to complete the FAFSA form.” Even those who submit the form in early January will not have their information sent to schools until later in the month.
Several changes were included in the stimulus law passed by Congress in December 2020, including restoring the ability of prisoners to receive Pell Grants and simplifying the cumbersome FAFSA process, which is partly attributed to a decline in the number of students (especially from low-income families) applying for federal financial aid. Legislators stated that the changes will make it easier to apply for aid, directing more help to part-time students and community colleges, and supporting institutions that historically serve minorities.
According to the Federal Student Aid office, $112 billion is provided annually in grants, jobs, and loans.
Leave a Reply