The newly designed FAFSA – Free Application for Federal Student Aid – is now available online and must be filed for consideration for federal grants and student loans, as well as for many scholarships, for the 2024-2025 academic year.
Parents of college bound students fill out the FAFSA once, listing all the schools to which their child is applying. They then file a new FAFSA each year that their child is in college to be considered for ongoing financial aid.
This year’s FAFSA has been launched later than its typical October 1st release date to allow time for changes to be implemented. The FAFSA is a relatively easy form to fill out, as it lets parents link to their previously filed tax returns to answer the financial questions. It has now been streamlined to just 36 questions instead of 108. Some families, with lower household incomes and uncomplicated tax situations, may see as few as 18 questions.
Once parents have submitted the FAFSA online, they’re given an SAI (Student Aid Index) letting them know exactly what the federal government thinks they can afford to contribute for the upcoming year to their child’s college education. Colleges use this figure, once students are accepted, to make up their financial aid package, typically offering a combination of loans, grants (which do not get paid back) and work study opportunities.
One question asked on the FAFSA is whether the student would like to be approved for “work study.” It’s always wise for parents and students to answer “yes” to this question, as the student will then be eligible, but not required, to have employment opportunities on campus.
Parents of students already in college may find that the newly designed FAFSA affects their financial award for upcoming years. Families with small businesses employing fewer than 100 people were previously allowed to exclude the net value of their business. This is no longer the case.
Families with multiple children attending college simultaneously previously got a “sibling discount” via the FAFSA. This is no longer a consideration.
There’s also another financial aid form, the CSS Profile, that is required by about 250 colleges nationwide, including Stevens Institute of Technology in New Jersey, Drexel and Villanova in Pennsylvania, and Fordham and NYU in New York City. It’s much more intrusive than the FAFSA and asks many more financial questions. In divorce situations, both the FAFSA and CSS Profile only take into account the financial information of one parent – the one who provides the most financial support.
Susan Alaimo is the founder & director of Collegebound Review, offering PSAT/SAT® preparation & private college advising by Ivy League educated instructors. Visit CollegeboundReview.com or call 908-369-5362
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