Is FAFSA removing sibling discount?

Per the Consolidated Appropriations Act of 2021, parents and students will use the new FAFSA form beginning in October 2023. The decision to eliminate the Sibling Discount comes amid FAFA changes and revisions by the Department of Education for the 2024-2025 academic year.

Did they remove the sibling discount from FAFSA?

One of the formula adjustments has received a significant amount of attention as of late: the loss of the "sibling discount." Previously, students with a sibling attending college received a break in the federal financial aid formula, which resulted in an increase in the students' eligibility for aid.

Does FAFSA have a sibling discount for 2024?

No benefit for having siblings in college: Previously, the FAFSA divided the EFC proportionally based on the number of household members in college. The elimination of this "sibling discount" will be the biggest change in aid eligibility for some students.

Is the EFC going away from FAFSA?

After the FAFSA simplification: The EFC is being replaced by the Student Aid Index (SAI). And similar to the EFC, the lower the SAI, the more aid you'll be eligible for.

Does FAFSA count siblings?

The student is always included, even if the student isn't living at home. The student's parents are included, if the student is dependent. If the student's parents are separated or divorced, only the custodial parent is counted. The student's siblings do not need to be students or to live at home to be included.

Sibling Discount for College Going Away in 2024-2025 FAFSA | Morning in America

How do siblings affect FAFSA?

When a younger sibling enters college, the EFC for the eldest sibling is roughly cut in half to account for the additional family costs incurred. Both siblings will have approximately the same EFC since they both use the same parents' tax information, while their individual incomes and savings create slight variations.

Is FAFSA changing for 2024?

More Financial Aid is Now Available for Single Parents

The 2024-2025 FAFSA includes even more aid for single parents, including expanded eligibility for the maximum Pell Grant funds and a larger increase in Income Protection Allowance (IPA).

What is replacing EFC?

One such change is replacing the Expected Family Contribution (EFC) with the Student Aid Index (SAI), which will be implemented for the 2024–25 award year.

How can I lower my EFC legally?

Reduce family income

If possible, defer any workplace bonuses or avoid exercising stock options. If you have an investment that's losing money, consider selling it. The capital loss will factor into your adjusted gross income and could lower your EFC.

Will FAFSA change for siblings in college?

The FAFSA^® will continue to ask if the applicant will have a sibling enrolled in college in 2024-25, but it will no longer factor that information into federal aid eligibility.

What changed for FAFSA 2024 2025?

The number of questions will be reduced and the application will maximize the use of previously collected data. Students will be able to list up to 20 schools on their FAFSA via the online application. The Student Aid Index (SAI) will replace the Expected Family Contribution (EFC).

At what age does FAFSA not consider you a dependent?

You can only qualify as an independent student on the FAFSA if you are at least 24 years of age, married, on active duty in the U.S. Armed Forces, financially supporting dependent children, an orphan (both parents deceased), a ward of the court, or an emancipated minor.

Does FAFSA consider siblings in graduate school?

In general, because most graduate and professional school students are independent, they are not considered in the IM calculation. (However, if a graduate or professional school student is reported by the family as part of the household and number in college, no adjustment is made to exclude that student.).

Why does my sibling get more financial aid than me?

You attended different colleges, which have a different financial aid packaging philosophy. You attended different colleges, one of which gaps students with a different amount of unmet need. Your brother has a different amount of assets than you. Your brother has a different amount of income than you.

Why is my FAFSA family contribution so high?

EFC is based on the parents' and student's income and assets. A high EFC is likely the result of high income or a high value of assets as reported on the FAFSA. Assets considered include bank account balances, capital gains and, sometimes, equity held in businesses and real estate.

Why did I lose my FAFSA money?

Possible reasons for your financial aid suspension

Your grades didn't requalify you for scholarships or grants. You didn't take enough credits to requalify for federal aid. Your school's tuition and fees increased.

What happens if parents can't pay EFC?

If your parents or guardians refuse to pay for college, your best options may be to file the FAFSA as an independent. Independent filers are not required to include information about their parents' income or assets. As a result, your EFC will be very low and you will probably get a generous financial aid offer.

What is the EFC for 100k income?

The basic theory is that the lower your EFC, the bigger your financial aid award. A family with an adjusted income of $50,000 and two dependents would expect to have an EFC of around $3,800 without considering any other financial assets. A family with income of $100,000, would have an EFC of approximately $20,000.

What happens if my EFC is too high?

In general, you should receive a more substantial financial aid package with a low EFC, whereas a high EFC means you might need to resort to unsubsidized or private student loans to cover costs your family can't afford.

What is the income limit for FAFSA 2024?

What Are the FAFSA Income Limits for 2024? Both students and their parents often think their household income makes them ineligible for financial aid. However, there's no income limit for the FAFSA, and the U.S. Department of Education does not have an income cap for federal financial aid.

What is the best EFC for financial aid?

Applicants whose EFC is less than 90% of the maximum Federal Pell Grant will receive a Federal Pell Grant. Applicants with a zero EFC will receive the maximum Federal Pell Grant. The average EFC among Federal Pell Grant recipients is about $700.

How much is the Pell Grant for 2024 2025?

Reps. Schiff and Carbajal worked with House Democrats and the Biden-Harris Administration to raise the maximum Pell award for the 2024-2025 school year to $7,395, which is $500 higher than the previous year and $900 higher than 2022.

What are FAFSA income limits?

There are no income limits to apply, and many state and private colleges use the FAFSA to determine your financial aid eligibility.

How will the new FAFSA work?

Student Aid Index (SAI) replaces EFC

The information you include on the FAFSA determines your SAI, which is an index number used by college financial aid offices to calculate need-based financial aid. Your need will be calculated by subtracting your SAI from the school's cost of attendance.

Is FAFSA first come first serve 2024?

Registration is available on a first-come, first-serve basis and remains open until filled. Information needed in order to complete the 2024-2025 application during the FAFSA and CADAA Completion Workshops: 2022 Student/Parent Tax Information.