- The FAFSA® is projected to open in December (delayed from the usual Oct 1 open date)
- The new FAFSA® form will be shorter (fewer questions)
- The language on the FAFSA® is more closely aligned with the language on income tax returns
- The SAI (Student Aid Index) replaces the EFC (Expected Family Contribution), and contains new formulas for calculating eligibility. In particular:
- Having multiple children in college will no longer reduce SAI, which may result in reduced eligibility for financial aid for some families.
- Qualified 529 distributions from grandparents, etc. will not reduce aid
- Education savings accounts will only be counted if designated for the specific student. (ESAs for other children won’t be considered.)
- Eligibility for the Pell Grant is expanded to families earning 225% of the poverty line (so about $67,500 for a family of four)
- For divorced parents, families will need to report the parent who provides the most financial support for the child.