FAFSA makes changes

The Free Application for Federal Student Aid (FAFSA) has recently undergone changes that financial advisors should be aware of to serve their clients better. The new 2024-25 FAFSA will be released by December 31.

Staying up to date on the FAFSA changes and updates is a great way for advisors to engage with their clients. Using the my529 plan as a bridge for conversations is an excellent stepping stone for connecting with families of high school-age students or those getting ready to enroll in college.

Changes include:

Student Aid Index. Transition to a Student Aid Index (SAI) rather than the expected family contribution (EFC) in evaluation of eligibility of student aid.

Grandparent-owned 529s. Eliminating the reporting required for grandparent/third party accounts, removing the impact a grandparent-owned 529 account has on the aid award packet.

Schools on list. Doubled the number of schools a student can list on the application to receive their information, from 10 to 20.

For 10 more conversation starters regarding the updates on FAFSA, read our FAQ. You may also refer to the FAFSA website for additional information: studentaid.gov/

Staying up to date on the FAFSA changes and updates is a great way for advisors to engage with their clients.