FAFSA changes, what to expect in upcoming year

Carter Kohli
Thu, 12 Oct 2023 00:10:15 +0000
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Student Academic Services handles concerns regarding the Free Application for Federal Student Aid, which has undergone several changes for the 2024-2025 school year. Credit: Sarah Szilagy | Lantern File Photo

In the upcoming year, the Free Application for Federal Student Aid will offer expanded access to federal Pell Grants — loans that do not need repaid — and change some of the methods used to simplify the process for students, as part of the final stage in the FAFSA Simplification Act, which passed in 2020.

The FAFSA, a yearly application used to determine a student’s federal aid eligibility, is now in its third transition under the legislation, which includes a significant overhaul of the processes and systems used to award financial aid, according to the Federal Student Aid website. Major changes include the replacement of the “Expected Family Contribution” with the “Student Aid Index,” modifications to family definitions and students’ IRS incomes and tax data now being directly shared to the FAFSA to increase the number of students who receive Pell Grants.

Chris Booker, assistant director of media relations, said the new index will no longer consider the number of college students in a student’s family and small businesses or family farms will need to be reported as assets. In addition, federal financial aid eligibility will expand with students’ family sizes and likely allow more students from low-income backgrounds to qualify.

Estimates from the Department of Education said these changes will lead to 500,000 new Pell Grant recipients, while 4 percent of current Pell Grant recipients are estimated to lose more than $10 in their award.

The new FAFSA will also not open until December, giving students two less months to apply. Anyone filling out the FAFSA will have to make their own Federal Student Aid account.

Ohio State had 42,147 students file a FAFSA in 2022-2023, and 84 percent of them were offered financial aid, according to Booker.

Additional information will be available within the next few months at studentaid.gov, and Ohio State students will receive updates from Student Financial Aid via their website at sfa.osu.edu.

Past changes from the FAFSA Simplification Act include eliminating student eligibility limitations surrounding Selective Service registration and drug convictions, changes to the definition of cost of attendance and Pell Grant eligibility for those who are incarcerated.