Why is FAFSA removing the 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.

Why was 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.

Did they remove the sibling discount from FAFSA?

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.

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.

5 FAFSA Tips That Will Reduce Your EFC

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.

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).

Does FAFSA consider siblings?

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.

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.

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.

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.

Is college cheaper if your sibling goes there?

In general, the aid that colleges that offer sibling discounts varies from about $500 a year to fifty percent of the tuition.

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.

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.

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 are you 50% related to your sibling?

Siblings share 50 percent of their DNA. Even though siblings have the same parents, they have unique genomes because the sperm and egg cells they came from had unique genomes as well. Every child receives half of each parent's DNA.

What is happening to FAFSA?

Beginning with the 2024–25 FAFSA^® form, each of your contributors (if you have any) will be able to create a StudentAid.gov account even if they don't have an SSN. As a student, you'll be required to enter your SSN (unless you're a citizen of the Freely Associated States) to create your StudentAid.gov account.

Why is FAFSA changing?

For the 2024-25 award year, the FAFSA is getting a facelift that includes a redesign and fewer questions. Plus, formulas determining aid eligibility have been modified with the goal of expanding financial assistance for low-income families.

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.

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.

What are FAFSA income limits?

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.

Do parents do their own FAFSA?

You and your child each need to create your own FSA ID. (Only one of a student's parents needs to sign the student's FAFSA form, so only one parent needs an FSA ID.)

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 changes are coming to the 2024-2025 FAFSA?

Beginning 2024-2025, new change removes the half-time enrollment requirement. The parent responsible for submitting the FAFSA in cases of divorce or separation has changed. For dependent students, financial information was previously needed from the parent(s) the student had lived with the most in the last 12 months.

What is the income limit for FAFSA 2024?

Students filing the simplified 2024-2025 FAFSA beginning in December 2023 will be eligible for the Maximum Pell Grant if their parent(s) are exempt from filing a federal income tax return or if their adjusted gross income is at or below 175% of that family's poverty level (225% of the poverty level if the parent is ...