The Federal Application For Student Aid (FAFSA) has undergone some significant changes designed to simplify the application process. Here are some key items to be aware of:
- Introduction of “Contributor”:
- A contributor is the new terms for anyone who is asked to provide: 1) their federal tax information directly from the IRS into the FAFSA form, and 2) their signature on the FAFSA form.
- Answers to questions on the FAFSA form will help to identify who contributor(s) are.
- Even if an applicant is considered “independent,” they might still be required to have contributor(s) participate on their FAFSA form.
- Mandatory StudentAid.gov Account:
- Both applicants and contributors must have a StudentAid.gov account to access the FAFSA form.
- A StudentAid.gov account can be created at any time and is not dependent on the timing of the FAFSA form.
- The Student Aid Index (SAI) Replaces Expected Family Contribution (EFC):
- SAI is an index number that reflects an applicant’s need, rather than the amount a family can contribute. It is not a dollar amount.
- Colleges and schools use an applicant’s SAI to calculate the amount and types of financial aid an applicant is eligible to receive.
- FAFSA Submission Summary:
- The Student Aid Report is now called the FAFSA Submission Summary.
- This summary highlights an applicant’s eligibility for federal student aid but is not an aid offer.
Please consult this link for more information.
If N&Co can be of any assistance to you as you work through the FAFSA form, please feel free to contact your accountant.