What is FAFSA Simplification?
● FAFSA Simplification is the product of 3 laws passed since 2019:
• Changes the way Pell grant eligibility is determined-AGI, family size, and marital status • Includes new automatic maximum/automatic minimum Pell grant based on federal poverty guidelines • Changes the EFC to the Student Aid Index (SAI) and makes changes to the formula to calculate it • EFC can’t be lower than 0; SAI can be as low as -1500 • PVAMU Office of Financial Aid & Scholarships used NAFSAA’s Student Aid Index (SAI) Modeling Tool as a source to predict the impact on our student.
○ The FUTURE Act, which amends the Internal Revenue Code to permit IRS to share federal taxpayer information (FTI) with the Dept of Education for purposes of financial aid applications (FAFSA) and applying for income-based student loan repayment ○ Consolidated Appropriations Act of 2021, which streamlines and simplifies the FAFSA by leveraging the FUTURE Act to obtain applicant income information directly from the IRS
■ Takes the hardest questions to answer (income questions) off the form completely
This law also:
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● Makes significant changes to student eligibility for federal student aid (Pell for Prison Education programs, removal of limitations on eligibility for students with drug convictions or who fail to register w/ Selective Service System)
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