Why did FAFSA get rid of sibling discount?

Although it's still unclear how widely these rules will be adopted, Andy Lockwood, a college admission advisor, explains college costs could double for many families that will have more than one child enrolled at the same time. “So for the most part, only 40% of families have one child in college at the same time.

Why was the sibling discount removed?

Why did this happen? This change was made to reduce the number of variables used to calculate Pell Grant eligibility and make it easier for families to determine their eligibility based on family size and income only. As well, the change does create a more equitable system.

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.

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.

Is FAFSA getting rid of EFC?

Beginning in the 2024–25 award year, changes to the FAFSA process will include the following, among others: The Simplified Needs Test formula and automatic-zero EFC were eliminated.

5 FAFSA Tips That Will Reduce Your EFC

What is replacing EFC?

The new changes mean the Expected Family Contribution (EFC) will be replaced with something called the Student Aid Index (SAI) beginning in the 2024-25 award year (which is the FAFSA you will begin to fill out this year).

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).

Why is EFC difference for siblings?

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.

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.

Do twins get more financial aid?

For example, the student income and assets may differ, and the student names and Social Security numbers will certainly differ. Twins, triplets and other multiples tend to qualify for more student financial aid than singletons because more children are enrolled in college at the same time.

What is the FAFSA sibling discount?

Among them, the SAI does not allow for a sibling discount. What does this mean? The amount of federal aid a student is eligible to receive will no longer increase if that student has one or more siblings attending college at the same time.

At what age does FAFSA stop helping you?

No, there's no age limit. Almost everyone is eligible for some type of federal student aid. The adult student still needs to complete the FAFSA form, and make sure not to miss any deadlines, just like any other student.

What changed for FAFSA 2024 2025?

What are the main changes to the application itself? 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.

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.

Is the new FAFSA better or worse?

The upcoming overhaul to the Free Application for Federal Student Aid and the underlying formula that determines how aid is dispersed will mean thousands more students will be eligible for the Pell Grant and higher-value Pell Grants than under the current formula, a new Brookings report finds.

Does FAFSA consider multiple kids in college?

Though the FAFSA will no longer include the number of students that a family has in college, the University of Southern California says that it will still consider it when looking at financial aid.

Is the sibling discount going away?

(NewsNation) — The 'Sibling Discount' currently available under the Free Application for Federal Student Aid (FAFSA) to families with multiple enrolled children will no longer be available starting with the 2024–2025 academic year.

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.

Can my parents make too much money so I won t qualify for aid?

Don't worry, this is a common question for many students. The good news is that the Department of Education doesn't have an official income cutoff to qualify for federal financial aid. So, even if you think your parents' income is too high, it's still worth applying (plus, it's free to apply).

Do you get more financial aid if you have 2 kids in college?

Will Families Pay Less With Two Students in College? Now, It Depends. The federal financial aid formula used to give a break to families with two or more children in college at a time. That's gone now, and some schools may not fill the gap.

Can I fill out one FAFSA for two students?

If you have more than one child in college, you'll need to consider four things when filling out the Free Application for Federal Student Aid (FAFSA^®) form: You and each of your children need an FSA ID. Each child will need to fill out a FAFSA form with parent information.

Do you get more financial aid if you have more kids?

'It doesn't always mean that the student will actually receive additional financial aid. A lot depends on the numbers and whether the student is Pell-eligible or not. But it does lower the student's family contribution, which may end up leading to increased financial aid eligibility.

What happened to FAFSA 2023?

Understanding the FAFSA 2023-25 Changes. One of the biggest changes to the FAFSA this year is its length. The application will be much shorter and rely almost entirely on parents' tax returns from two years prior. This means a more straightforward financial aid application overall.

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.

Why did they change the FAFSA?

The new Free Application for Federal Student Aid (FAFSA) for school year 2024-25 will be shorter than in the past (just 36 questions compared to 108); allow you to transfer tax data directly from the IRS; and include new formulas that should grant more aid to more students.