FAFSA just released the new Simplification Act, which will change the process and system used to award student aid for the 2024-25 award year. This will affect the FAFSA form, need analysis, and the policies and procedures for schools to participate in student aid programs. Here are some of the major changed
- The Expected Family Contribution (EFC) will be replaced with the Student Aid Index (SAI)
- The Family Definitions in FAFSA Formulas will be modified so that the measure in family size is more accurate to whatever was reported on a student’s or parent’s tax returns
- FAFSA expanded its access to Federal Pell Grants
- The FAFSA Form is now streamlined, that mandates that FAFSA will use data received from the IRS to calculate Federal Pell Grant Eligibility and the SAI
- The FAFSA Simplification Act will remove questions about Selective Service registration and drug convictions, while adding questions about race, sex, and ethnicity during the application process. This will not affect applicant’s federal student aid eligibility.
- Please check out this link before applying for this year’s FAFSA!
https://nashuproar.org/58744/features/the-basics-of-personal-finance/
