By
In 2021, Congress passed several changes to the FAFSA form, streamlining some parts of the monster application and changing some terms and grant levels.
Some of those changes are now taking effect for this year’s FAFSA, which opened Oct. 1, and which students will want to fill out by June 30, 2023 [or earlier -- check your school’s dates!] for the 2023-24 school year.
Pell grant recipients are likely to see the biggest differences in aid amounts. And, soon, Pell recipients will be able to see if they’re eligible for the biggest aid to low-income students before they fill out the form, hopefully encouraging more students to apply for aid and enroll in school.
Some questions are pretty different.
- No more Selective Service requirement. Until recently, the FAFSA asked if applicants had registered for the draft as part of its financial aid screening.
- Students with a record of drug convictions will no longer be ineligible for financial aid.
- The FAFSA no longer asks, “Are you male or female?”
- Incarcerated students can now qualify for the federal Pell Grant. This reverses a 1994 rule.
Other changes, approved in 2021, might not be seen until 2024-25.
- The bill replaces the current Expected Family Contribution [EFC] with a Student Aid Index [SAI]. The name change is meant to reflect the calculation as a determination of aid eligibility rather than an expectation of what a family can afford to pay for college. An applicant’s SAI can be as low as -$1,500 [compared to the lowest EFC, which is $0].
- Students will be able to look up whether they’ll be eligible for a Pell Grant based on their income and family size information even before they apply. This will be super cool! [Learn more about the Pell Grant here.]
- The bill makes changes to the “income protection allowance” for both students and parents and protects a greater percentage of earned income. Ideally, working students and families will now receive more aid.
- The bill restores lifetime Pell Grant eligibility for many students who were unable to complete their program of study after being victims of a fraudulent college or seeing a for-profit college unexpectedly close.
- The bill eases the financial aid application process for students formerly in foster care and students experiencing homelessness.
- The bill repeals the limitation on lifetime subsidized loan eligibility, known as the Subsidized Usage Limit Applies [SULA] requirement, which currently bars students from receiving subsidized Direct Loans for more than 150% of the published length of their program. The bill requires the Education Department to implement the repeal by July 1, 2023, but allows for early implementation.
What is the IRS Data Retrieval Tool?
People filling out this year’s new FAFSA form will need their 2021 income tax information. The easiest way to pull up that information is to use the IRS’ online tool, which scans past tax filings and automatically imports information into the FAFSA. Some people, though -- students who are married but filing separately, people with no income tax filing history, or people who need to edit their information -- might have trouble using the tool effectively.
How do I get help with the FAFSA in Alabama?
Many high schools, community colleges, universities and community organizations are hosting workshops and offer help to students and families.
One statewide organization with great resources is Alabama Possible. You can find some of their resources here.
If you purchase a product or register for an account through one of the links on our site, we may receive compensation.
The Federal Student Aid office recently announced FAFSA changes that will go into effect for the 2023-2024 school year. Other news and media outlets, such as Forbes, have covered these changes – and reported incorrect information. We want to ensure that you and your college-bound family are armed with information to make the best possible decisions about filling out their FAFSA in the coming years. Here’s everything you need to know, including the timeline for changes to take effect.
Removal of Drug Conviction Questions
Past FAFSA forms have asked questions about drug conviction. These questions will be removed for the 2023–24 FAFSA® form.
myStudentAid Application Is Retired
In previous years, the FAFSA could be submitted via a mobile application – myStudentAid. The application is being retired. Applicants can either submit their FAFSA online using a desktop computer or laptop, or they can go to StudentAid.gov to submit their FAFSA application using a mobile device browser [Safari, etc.].
FAFSA Simplification Act Changes
The FAFSA Simplification Act that was recently passed by Congress includes:
- Overhaul of the FAFSA form [for example – going from over 100 questions to closer to 36].
- Changes in how need is assessed.
- Procedure changes for schools to participate in Title IV programs.
Learn more about the FAFSA: Applying for Financial Aid: FAFSA and CSS Profile
Gender Identification Questions
Questions asking specifically whether the applicant is male or female have been removed across all platforms.
Learn more about how gender identification questions: College Applications and Financial Aid for Transgender Students
Selective Service Eligibility
StudentAid.gov is no longer offering Selective Service match. Previous questions asking applicants to indicate that they were interested in registering for the Selective Service have been removed across all platforms.
Incarcerated Students
Per the FAFSA Simplification Act, incarcerated students will regain eligibility to access federal Pell Grants. Students are identified as incarcerated if:
- Address on the FAFSA forms matches an address in the FAFSA program’s correctional facility file.
- An applicant submits paper FAFSA form specifically developed for incarcerated applicants.
- The FAA submits an application for incarcerated students and sets the “incarcerated applicant” flag.
Need Analysis Income Threshold
Each year, there is an income threshold that equals an “automatic zero” when the FAFSA helps to calculate a family’s expected family contribution [EFC]. For the 2023-2024 school year, this threshold has been increased from $27,000 to $29,000.
Learn more: When Your Expected Family Contribution is Too High
Key Takeaways
Truth be told, the FAFSA change rollout for the 2023-2024 school year doesn’t look as though it’s going to have a dramatic impact on applicants or their families – which is a win! However, the significant changes that were passed in the FAFSA Simplification Act are going to be effective on the 10/1/23 FAFSA that affects the 2024-2025 school year. For example, if you have multiple kids in college at the same time or you are divorced/separated, there are going to big changes coming that could dramatically affect your financial aid eligibility. We encourage all college-bound families to join the MyCAP community to stay informed on these upcoming changes.
Not only will you get access to a free software application to help you organize your college funding journey, but you’ll also have access to regular educational webinars and events hosted by our team of experts. We stay on top of FAFSA changes so you don’t have to! Register for your free account by clicking here.