If you have ever tried to fill out and complete a Free Application for Federal Student Aid (FAFSA) form, you will know that it is often more difficult than taking a final exam. Many students become overwhelmed by the dozens of questions, others do not meet the completion deadline, while others do not use the right tools, like the IRS Data Retrieval Tool (DRT).
Dan Erickson, associate manager of Client Services, Financial Aid and Veterans Benefits, was kind enough to explain the process in easy-to-understand terms.
The FAFSA Simplification Act, aimed at streamlining the application process and expanding aid accessibility, was implemented starting in the 2023-24 award year. The new version of the FAFSA application was released in December 2023.
FAFSA Application Changes
The Act brings a significant overhaul, cutting around 60 questions to hasten the application process. Madison College faces technological shifts, with software updates and algorithm rewrites, impacted by delays from the Department of Education, causing initial challenges now resolving.
Pell Grant Calculation and Eligibility
Expedited changes expect Pell Grant eligibility expansion. The FAFSA website’s retrieval tool for the 2023-24 award year requires IRS information. The user’s tax information will be imported directly from the IRS in a smoother, and more accurate way than ever before. While the process remains easy for tax filers, non-filers will not use this tool. However, parents without Social Security Numbers (SSN) can use the tool, which they previously could not. SSNs or Tax IDs facilitate online FAFSA completion.
How Disbursement Amount will be Calculated
The Student Aid Index (SAI) does not use family size the same way as the Estimated Family Contribution, EFC, but due to poverty guidelines, the family size is still an important for this calculation.
The EFC adjusts for living expenses, considering family size based on Federal Poverty Guidelines. Wisconsin currently treats a -1500 SAI as 0. Pell Grant amounts are calculated differently, ensuring fair distribution among students.
Disbursement Process and Potential Changes
Changes in Pell Grant disbursement include “Enrollment Intensity” rather than “Enrollment Level,” allowing credit-by-credit consideration. Once at 12 credits, disbursement remains consistent. Department of Education changes aim to simplify Pell Grant methodology, focusing on fewer variables.
Application Assistance for New and Returning Students
Information on Department of Education changes reaches high schools and organizations like College Goal Wisconsin.
Madison College collaborates with College Access Navigators for outreach. Discussions for a comprehensive FAFSA session around February or March are ongoing.
For additional assistance, FAFSA.gov provides instructional videos. Stay informed, utilize resources, and embrace the simplified FAFSA process for a smoother educational journey. Contact Madison College’s support teams with any questions.