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Daily Updates | The New FAFSA: Essential Insights for Parents of College-Bound Students

The New FAFSA: Essential Insights for Parents of College-Bound Students

the New FAFSA Essential Insights for Parents of College-Bound Students

With recent revisions to the FAFSA (Free Application for Federal Student Aid), parents must be informed in order to optimize their financial aid eligibility and avoid potential rejection.

The FAFSA is an application used by the federal government to determine a family’s ability to pay tuition fees and eligibility for financial aid. In simple terms, it is the official application to apply for the scholarship. The federal government helps families in the form of loans, scholarships, and grants; the type of financial aid is determined on the basis of the FAFSA application.

The FAFSA application is available on October 1 every year and closes on June 30, i.e., for 19 months. For example, the FAFSA form for the academic year 2023–2024 can be submitted between October 1st, 2022, and June 30th, 2024. Even though it does not work on the formula of first come, first served, some states have financial aid deadlines before June 30th, so they may close out before the end of that.

However, the federal student loans news just dropped and the new FAFSA will be available on December 31st, rather than October 1st, a 90-day delay. The form will come with a few changes, such as a new formula to calculate financial aid, an easy process, and not many questions.

Some of the known changes to the new FAFSA application are as follows:

  • The tax information is not optional now, and it will be pulled directly through the Internal Revenue Service (IRS). Without consent, the student won’t be able to get the financial aid.
  • Separate forms for students and parents are now available. Earlier, both parents and students needed to sit together to fill out the form. However, that is not the case now. Also, parents and students need to fill out the form within the same period of not more than 45 days.
  • Parents are now contributors. The new 24-2025 FAFSA (Free Application for Federal Student Aid) states that anyone who must submit financial information is a contributor. Either one of the parents or both will be considered contributors. Contributor does not necessarily mean the person responsible for student financing. A new FAFSA parent sign up will be required and a FAFSA parent account will be created.
  • The new FAFSA application will be student-friendly, and it will be easier to get financial aid. What’s more, the new FAFSA will allow more students to get money. As many as 61,000 additional students will get Pell grants, and 1.5 million additional students will be offered a maximum of a $7396 annual award.
  • Apart from this, certain circumstantial changes can be better understood once the new FAFSA launches on December 31st.

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Table of Contents

Key Takeaways

  • The “Free Application for Federal Student Aid” application has been revised and will come with several crucial changes.
  • Due to various changes in the new FAFSA, it is delayed by approximately 91 days and will launch on December 31st.
  • A new questionnaire, a convenient procedure, and a new formula to calculate financial aid will be introduced in the new FAFSA (Free Application for Federal Student Aid).
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