New FAFSA On The Horizon

The newest version of the Free Application For Federal Student Aid, or FAFSA, will be available online starting on October 1st.

The new changes, some which won’t come into effect for several years include:

• A shorter form FAFSA application form

• Expanded Pell Grant eligibility

• Expected family contribution is renamed The Student Aid Index

• Lifetime Federal direct subsidized loan limits eliminated

• Unemployment during a national emergency can change eligibility

Otherwise much of the form will remain the same until the 2023-2024 school year. For more details check here.

For tips on how to create a FAFSA ID number and begin the process of filling out the applications, check here.

Don’t forget … even if the family income is high, a student should fill out the FAFSA because the formula used for determining financial aid takes much more than just the family income into consideration. The Estimated Family Contribution, or EFC, again calculated on much more than purely income, will directly impact the amount of aid a student will receive. But, with tuition costs have gone up so much, more and more families could be eligible to financial aid. So don’t assume anything, fill out the FAFSA t today!!!

College Applications & the Government Shutdown

At 29 days and counting, the US government shutdown is now affecting students both applying to college, trying to transfer because they are unable to access the necessary documents from the IRS in order to apply for financial aid, or needing to pay their tuition payment. Students who had not yet filed their FAFSA are encountering delays, making them miss financial aid deadlines.

To get around this some colleges are accepting signed copies of submitted tax returns for the time being, others have instituted flexible deadlines, and schools are reaching out to each other to share the necessary information. Deferred payment plans for students whose parents are furloughed federal employees and unable to pay their child’s tuition payments is another method being used to assist this group of students, while a few schools are waiving the application fees for applicants affected by the shutdown.

Community college are often incorrectly snubbed as a viable college option, yet their tuition has become very attractive for students financially strapped due to this shutdown as a means of at least beginning their college education. Unfortunately, some students’ only option is to drop out of college this semester.

The ripple effect of the shutdown has also reached the graduate level where swearing in ceremonies for the DC bar, originally scheduled for January 25th, have been postponed. The New Jersey Board of Bar Examiners is allowing eligible DC law students to take their bar exam.

If you are a student facing financial difficulties due to this shutdown, please reach out to the Financial Aid Department of your school for assistance.