(The regulations don’t go into effect until July 1, 2023 for the 2023-2024 award year.) Additional changes of note, in no particular order, and not including all changes:
Untaxed income and benefits will no longer include child support received. According to the article I cited, “the definition of assets will include the annual amount of child support received.” Not sure how that will work, but the article says it will be a more beneficial treatment.
Untaxed income and benefits will no longer include cash support and any money paid on the student’s behalf. This is really helpful for some students … although schools may include it for their own aid, I suppose. I am thinking of grandparent 529 payments as an example.
Changes to Simplified Needs Test and Automatic 0 formulas that make it harder for folks like us to easily explain them!
The removal of free/reduced lunch from the list of means-tested benefits for determining eligibility for the above formulas.
Changes to Pell eligibility. The article says this about the changes: “Although this change does not really simplify Pell Grant eligibility, it does allow the use of a lookup table to show applicants whether they will be eligible based on family income, dependency status, and the number of parents in the household. It also makes it easier for single parents to qualify for the maximum Pell Grant.”
Students will no longer lose eligibility for federal student aid because of a conviction for the sale or possession of controlled substances while receiving federal student aid.
Male applicants will no longer be required to have registered with Selective Service.
Students will no longer have to file for a dependency override every year if they attend the same school in subsequent years. The aid office can assume nothing has changed unless the student informs them of a change.
And a very welcome change: Dependent students who do not qualify for a dependency override can now, if the financial aid administrator allows, receive unsubsidized Federal Direct Stafford loans if the parents refuse to complete the FAFSA, even if the parents haven’t cut off all support.