Why did FAFSA remove sibling discount?

Starting with the 2024–2025 academic year, the discount currently available under the Free Application for Federal Student Aid (FAFSA) to families with multiple enrolled children disappears, a byproduct of new legislation that seeks to simplify the form that determines financial aid eligibility.

Did FAFSA get rid of the sibling discount?

But that “sibling discount,” as it was known, is ending. The new FAFSA, opening in December, will ask about the number of children attending college in the 2024-25 school year. But this information won't automatically boost the amount of aid the family receives.

Do colleges give sibling discounts?

While financial aid, student grants, student loans, and scholarships are all financial vehicles that can help parents and students pay for educational expenses, financially savvy individuals look for discounts, and many schools do offer sibling discounts off of tuition.

How does FAFSA work with siblings?

The current FAFSA calculates an expected family contribution, or EFC, which determines students' eligibility for federal financial aid. If a household has multiple family members in college at the same time – indicated by a question on the FAFSA – that number would be divided between each of those enrolled.

Is FAFSA getting rid of 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).

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What is replacing EFC?

After the FAFSA simplification: The EFC is being replaced by the Student Aid Index (SAI).

What is replacing EFC on FAFSA?

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.

Why is sibling discount going away?

Starting with the 2024–2025 academic year, the discount currently available under the Free Application for Federal Student Aid (FAFSA) to families with multiple enrolled children disappears, a byproduct of new legislation that seeks to simplify the form that determines financial aid eligibility.

What is sibling discount FAFSA?

The so-called sibling discount that's allowed parents with more than one child in college at the same time to save some money on tuition is going away. Oyin Adedoyin: For some families, this is really going to change the financial aid award that they're used to getting every year.

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.

Does FAFSA include siblings?

Your parents' household size should include yourself, your parent(s), and children (other than yourself) who will receive more than half of their support from your parent(s) between July 1, 2023, and June 30, 2024. Include siblings who would be considered dependent based on the FAFSA dependency questions.

Is the new FAFSA better or worse?

Along with the easier-to-complete form, there'll be changes in how your aid is calculated. Most people will get more money for school, but some will lose out.

Do twins get more financial aid?

Do twins get more financial aid? Twins typically do qualify for more financial aid! When submitting the FAFSA and CSS Profile, twins will often qualify for additional need-based aid to take into account the increased financial strain of sending two students to college at the same time.

Will I get financial aid if my parents make over 100k?

If your parents are high earners, you might assume you won't get any financial aid to help pay for college. But that's not necessarily the case. The Department of Education doesn't have an official income cutoff to qualify for federal financial aid.

Is FAFSA changing for 2024?

With the 2024-2025 FAFSA, the term Expected Family Contribution (EFC) will be replaced with the Student Aid Index (SAI) – this is a new need analysis formula that we will use when awarding need-based grants and scholarships.

Who is no longer dependent on FAFSA?

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.

How does 2 kids in college affect FAFSA?

We recognize that as a parent, your annual ability to pay per child decreases as you have more children enroll in college. So we divide the expected parent contribution portion by the number of children you expect to have in college. This is how much you are expected to contribute.

Can 2 people in the same household apply for FAFSA?

No. The applicant and other contributors will each have their own section of the FAFSA form to complete.

Can I have two FAFSA accounts?

Parents and students can create their FSA IDs now. Note: Your FSA ID is associated with your Social Security number and is equivalent to your legal signature; therefore, each person can only have one FSA ID.

How do I cut my EFC in half for college?

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.

Does CSS consider siblings in college?

My family has more than one child in college at the same time, does this mean my aid will be reduced? MIT uses the CSS Profile to determine need-based aid. We will continue to count siblings in college, so you will likely not experience any changes.

Why is EFC so high on FAFSA?

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.

What are the FAFSA changes for 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.

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.