Changes to the FAFSA
There are changes coming to the FAFSA (Free Application for Federal Student Aid) beginning Oct 1, 2022. The number of questions will be reduced to 36 from 108. The new Student Aid Index (SAI) is replacing the Expected Family Contribution (EFC) and may help clarify the amount families must pay for a year of college. Another change is the amount families with more than one child in college are expected to pay. Currently, these families save approximately half of the EFC when the second child begins college. With the new legislation, the EFC will be applied to each child instead of the family ultimately costing the family more money. The next change could benefit families with untaxed income from workers' compensation, allowances for military and clergy, and child support services. With the new FAFSA Simplification Act, these services will no longer be considered income when calculating the amount a family is expected to pay for financial aid purposes. In addition, any money for college paid by family and friends will no longer be considered as untaxed income. Currently, any money given to the student not reported on the FAFSA is considered untaxed income and assessed at 50%. This means that families receiving money from others for a child's education will not negatively affect the amount of financial aid. These changes will apply to students who are sophomores in high school now.