FAFSA
FAFSA stands for The Free Application for Federal Student Aid and is the major form used to determine eligibility for federal aid, including Pell Grants and student loans. It is available online or in paper form. It is a basic financial statement for college. However, it is seven pages long and very confusing.
Recent Proposals
Lawmakers are submitting new legislation that has bipartisan support and likely to pass. What is in this FAFSA bill?
- seven page form reduced to two pages
- improving online access for speedier processing
- coordinating software with IRS to eliminate duplication and chance for errors
- create a pre-FAFSA in the junior year so families have more time to prepare for college financially and merely update in the senior year
Even a Caveman Can Do It
Presently, even tax experts are confused by questions on the FAFSA. The College Aid Made EZ Act simplifies the process and encourages more students to apply for the aid. Presently, many of the students that would qualify for large sums of financial aid are so overwhelmed by the forms that they give up and don't apply. They don't know how to predict the cost of college and think they can't afford it.
So, what do the changes look like? The Department of Education and the IRS will coordinate financial data. By doing so, two-thirds of income-related questions are eliminated from the FAFSA form. A family could fill out the 1040 and this information would automatically be integrated within the FAFSA without confusing the parents and the student.
Democratic Priorities
Improving college access has been a top priority for the Democratic Congress. In the past two months, the following have been passed:
- cut interest rates on federal student loans to "half"
- passed Pell Grant fairness legislation for the neediest students
- increase maximum Pell Grant scholarships by $260
Source: Press release from the Department of Education and Labor
EFC
The Expected Family Contribution is a key factor to students receiving aid and a product of the FAFSA form. The new bill asks for any students with a family income of below $30,000 to be automatically eligible for zero EFC. This means that a family with income below $30,000 would not be expected to contribute to college expenses.
Counselor Shortage
There is presently a counselor shortage. Many counselors have loads of over 500 and even 700 students. With a complicated financial aid formula, many students give up and go into the workforce with a limited education. School counselors do not have the time to help explain the process. Some students get so discouraged, they quit school. Dropouts state that being uninformed about options is one of the reasons they quit school.
Supporters
The supporters of this legislation are:
- the American Association of Community Colleges
- the American Council on Education
- the Association of American Universities
- the Association of Jesuit Colleges and Universities
- the Center for Law and Social Policy
- the National Association of College Admission Counseling
- the National Association of Independent Colleges and Universities
- the National Association of State Student Grant and Aid Programs
- the National Association of Student Financial aid Administrators
- the United States Student Association
- the College Parents of America
Perhaps, it would have been better to ask for the small show of hands of organizations against this? Great changes possibly coming and it is about time. When will it come to be?
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Read previous articles on Educational Issues.
Copyright article 2007 Barbara Pytel. All Rights Reserved.
Barbara Pytel - Email me Experience Although I was never particularly fond of going to school as an ELL student, I ironically became a teacher, ...
