Effective July 1, 2023 there are MANY big changes happening to the financial aid process. I’ve highlighted the most important things you need to know and when you need to deal with them.
The government is trying to make student aid process easier to understand.
- If your teen is a rising senior (starting 12th grade in August) the financial aid form FAFSA that you fill out in October will be the “new” version.
- EFC “expected family contribution” terminology is being replaced with a new term “student aid index” (SAI).
- BIG CHANGE: On July 1, 2023 Colleges will be required to disclose costs of attendance on their websites. (currently not required)
- BIG CHANGE: “Financial aid administrators are authorized to adjust an applicant’s cost of attendance, to adjust the values used to calculate a student’s SAI or Pell Grant eligibility, and to adjust the dependency status of an applicant” (currently a college employee does NOT have this authority)
- Students with a drug conviction are now eligible for federal student aid including Pell Grants (previously not allowed).
- Guaranteed maximum Pell Grant award is being expanded to allow for higher income level thresholds, single parents, and dependents.
- BIG CHANGE: Students are no longer cut off from loans when they exceed the 150% time to complete a degree. (This means students in degree programs can keep borrowing year after year after year. Old cap didn’t allow borrowing for a 2-year degree after 3 years and didn’t allow borrowing for a 4-year degree that took longer than 6 years. I estimate this will contribute to colleges slowing down the graduation rates and students taking on more student debt.)