College students and their families will have to wait longer to start their Free Application for Federal Student Aid forms this year.
The traditional opening date of FAFSA applications is Oct. 1, but because of changes to the formula used in the applications, this year’s start is postponed to December. The federal agency hasn’t yet specified what date in December the forms will be available.
The changes come after the passage of the FAFSA Simplification Act, which “represents a significant overhaul of the processes and systems used to award federal student aid starting with the 2024–25 award year,” according to the U.S. Education Department’s FAFSA website.
Methodology changes
The Expected Family Contribution, the index previously used to determine a family’s eligibility for aid, has been replaced with the Student Aid Index. With the EFC, the lowest contribution score was $0. Under the SAI, it could be as low as -$1,500. As a result, the federal agency will be able to better differentiate among students with high needs.
The form will also be much shorter, consisting of 36 questions, rather than 108. Questions about Selective Service registration and drug convictions were among those removed, according to the FAFSA website.
Who loses out?
Having other family members in college will no longer be a factor in calculating aid. Families who count on the so-called “sibling discount” may be disappointed to find out that the new formula no longer divides expected family contribution based on the number of children who are currently in college.
What is considered to be a “financial asset” has also changed. Farms and small businesses under 100 employees, which were previously exempt, are now considered assets which can be used to pay for college under the new formula. This will decrease aid eligibility for families with farms and small businesses, according to previous Missourian reporting.
New eligibility
Overall, more students will see eligibility, according to the FAFSA website.
Families making less than 175% and single parents making less than 225% of the federal poverty level will receive the maximum award. Federal poverty levels are dependent on household size and can be found on the U.S. Department of Health and Human Services website.
As of July 1, Pell Grant eligibility has been brought back for incarcerated students. According to the Associated Press, the banning of Pell Grants for prisoners in 1994 caused a sizable reduction in prison college programs.
What to look out for
The exact start date for the 2024-25 FAFSA has yet to be announced but is expected to be in December.
The maximum Pell Grant for 2023-2024 was $7,395, an increase of $500 from the previous aid year. The maximum award for 2024-2025 has not yet been determined.
Students should be aware that while Pell Grants generally do not have to be repaid, certain factors may force students to pay part of the money back, such as withdrawing from a course.