If you’re already thinking about education costs for the 2023-2024 school year, completing the Free Application for Federal Student Aid (FAFSA) is probably on your list of things to do. With recent legislation passed that will impact the FAFSA for the upcoming school year, though, you want to spend some time understanding those changes.
And if you’ve mentally rejected the idea of completing the FAFSA, thinking your family income and net worth preclude your child from qualifying for aid, it’s worth re-thinking that strategy. Contrary to what most people believe, FAFSA doesn’t only relate to needs-based assistance. Your child might be eligible for a number of merit-based scholarships and grants that require the FAFSA, so it’s worth completing.
Thankfully, the aforementioned FAFSA updates include some changes that should make the process easier. Here’s our rundown of some of the significant changes coming:
FAFSA Changes in 2023
Passed by Congress at the end of last year, the FAFSA Simplification Act is designed, as the name suggests, to simplify the process and make it easier for students to access aid. Part of that simplification is streamlining the form itself, which last year consisted of 108 questions. For 2023-2024, the application will have no more than 36.
There are also changes being made to how need is assessed, aiming to open access to federal aid to more families. For example, the “income protection allowance” (the amount of income discounted in terms of qualifying for financial aid) has changed, with income thresholds increasing for both students and families.
As well as changes to the application itself, participating schools have been given updated statutory requirements. These cover calculating program awards, establishing a student’s dependency status and the professional judgements made under the discretion of financial aid administrators.
Schools must also make Cost of Attendance (COA) breakdowns publicly available on their websites. This means listing all of the elements included in COA, giving more clarity around the figures involved. Some category descriptions have changed for greater transparency, and living expense categories are now broken down into specific costs/allowances.
Other FAFSA Changes in 2023
As well as the FAFSA Simplification Act, other updates include the following:
- The removal of drug conviction questions to open up access to aid to more applicants.
- Selective service eligibility is no longer a requirement for accessing federal aid, so students will no longer need to have a Select Service match to prove they’re exempt.
- The question “Are you male or female?” has been removed from all application sources to make the process more accessible and inclusive to all.
- The mobile application myStudentAid has been retired, meaning to file a FAFSA application via a mobile device, users must do so via StudentAid.gov.
The FAFSA changes for 2023-2024 are designed to get more aid to more students, with an easier application process and fewer restrictions. Whatever your education planning needs for the 2023-2024 school year and beyond, CG Financial is here to support you. Our comprehensive process will incorporate an education planning strategy into a wider wealth management plan, helping to shape your family’s educational and financial future
2023–24 Summary of Changes for the Application Processing System Guide. (August 10, 2022). Federal Student Aid https://fsapartners.ed.gov/knowledge-center/library/handbooks-manuals-or-guides/2022-08-10/2023-24-summary-changes-application-processing-system-guide
FAFSA® Simplification Act Changes for Implementation in 2023-24. (November 04, 2022). Federal Student Aid https://fsapartners.ed.gov/knowledge-center/library/dear-colleague-letters/2022-11-03/fafsar-simplification-act-changes-implementation-2023-24
