Breaking Federal Student Aid News!

Last month, Federal Student Aid (FSA) announced that there will be a phased approach to implementation of the FAFSA Simplification Act, which passed on Dec. 27, 2020 as part of the Consolidated Appropriations Act, 2021. The FAFSA Simplification Act represents a significant overhaul of federal student aid, including the Free Application for Federal Student Aid (FAFSA®) form, need analysis, and many policies and procedures for schools that participate in Federal Student Aid programs. Changes to Be Implemented for the 2021–22 Award Year
The elements of the FAFSA Simplification Act that will be implemented for the upcoming award year include:
  • Repeal of the Subsidized Usage Limit Applies (SULA) requirements;
  • The removal of negative consequences associated with an affirmative response on the drug conviction question on the FAFSA form; and
  • The removal of the requirement that male students register with the Selective Service System to receive federal student aid.

While it is too late in the development cycle to remove the questions related to drug conviction and selective service from the 2021–22 and 2022–23 FAFSA forms, FSA has provided guidance to institutions about how to process FAFSA forms to eliminate the effect of the questions. FSA will also provide guidance to affected applicants about their eligibility for aid.

The other changes, including replacing the Expected Family Contribution (EFC) with the Student Aid Index (SAI), expanding access to Federal aid and streamlining the FAFSA form are not expected to be fully implemented until the 2024-25 FAFSA.

Then, just last week – we got even MORE breaking news. The Department of Education announced that it would be waiving verification requirements for applicants selected for the V1 verification tracking group (the most common and often burdensome verification for students to complete) for the remainder of the 2021-2022 aid year.  This decision was made “to provide relief to millions of students and colleges facing challenges and barriers resulting from the ongoing national emergency.”

All around this is excellent news for students who have experienced difficulties completing the verification process! Our team is working quickly to make sure these changes are implemented and impacted students notified so they can more quickly receive their 2021-22 Financial Aid Offers.  And we’ll continue to track news of other FAFSA Simplification Act changes as they are announced.