my529 notes FAFSA Changes

my529 understands that applying for higher education can be stressful. We are here to help make that process as smooth as possible. The recent changes to the Free Application for Federal Student Aid (FAFSA) aim to simplify paperwork for all applicants and increase aid to low-income families.

The FAFSA connects students to qualifying aid, including federal grants, federal student loans, state grants or scholarships, school-specific grants or scholarships, and private grants or scholarships.

The new form became available as of December 31, 2023. The updates 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. The SAI is a number calculated to represent the student’s eligibility for aid. The formula no longer considers how many family members are currently enrolled in higher education.

Federal tax information will transfer directly from the IRS. Consent and approval are required to allow this automatic transfer, but it saves you from having to enter much of the data required in past years.

Grandparent-owned 529s no longer count against the student. Reporting is no longer required for grandparent/third-party accounts, removing the impact a grandparent-owned 529 account has on the aid award packet.

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

For more information regarding the updates on the FAFSA application, Federal Student Aid offers this video introducing the changes, or you can read our FAQ at my529.org. You may also refer to the FAFSA website for additional information: https://studentaid.gov/.

The FAFSA connects students to qualifying aid, including federal grants, federal student loans, state grants or scholarships, school-specific grants or scholarships, and private grants or scholarships.