Sneak-Peek Look College Money Rules Changes
As the saying goes, the only constant is change. Deep in the bowels of a bill Congress passed in late 2020, are some interesting changes for parents and their higher education students. A selected set of information is provided to you, as general information. Details can & will change between now and their implementation.
Impact date- None of these changes start until 7/1/2023. Why the delay? Congress gives the enforcing agencies time to write the regulations and implement the process changes. Each year you borrow money, you must update and re-submit your FAFSA. You might see different questions, and, you might suddenly become eligible for grants that you didn’t get before. In other words, pay attention in 2023.
FAFSA gets a facelift. Renamed the Student Aid Index, it is a (somewhat) more simplified process. The simpler rules should allow parents to preview a yet-to-be-developed chart on what they may qualify for in terms of grants and loans. THIS is good news down the road. It should help dampen the “shock and awe” most families get when the financial paperwork follows the acceptance letters. The new regulations will also take into account specified debts ( mortgage/rent and car loans) when calculating loan eligibility. Neither of these major expenses has mattered in the past.
PELL Grants will expand- More categories for students, consideration of family debt, and a broader definition of independent students should increase the number of Pell Grants awarded. Also, it will be more nuanced as to the amounts of money granted. A max Pell grant can almost cover a year at Community College in my backyard. Even if you only qualified for a partial Pell, it could help if you are attending a lower tuition school.
Drug Convictions and Selective Service registration reconsidered. Currently, if you have a drug-related conviction or fail to register for Selective Service by age 26, you are ineligible for Federal student aid. That rule is gone in July 2023.
Coast Of Attendance (COA)- Today, when you get the big numbers package, your school fills in the Cost of Attendance categories. Now it will be determined by the Dept of Education, not the local college or university. This is in response to parental complaints that the COA’s from various schools were consistently & inaccurately low. The COA provided to me by my daughter’s school 10 years ago was laughably low, too. And, as the cost rose each year, the gap widened between their projections and my wallet. This change may help.
Unaccompanied Homeless Youth/ Provisional Independent Youth status- The intent is to help non-supported students qualify for a broader spectrum of services and funds. It may surprise you, but quite a large number of students are left to fend for themselves after high school. This bill addresses major gaps for these forcibly independent youth students.
Overall, these changes appear to be helpful for everyone. The biggest message today is things are constantly in motion. Keep asking questions like, “ Has anything changed that my student may apply for this semester/year?” jor, “Are there any new options or opportunities for my student in Financial Aid.?”
The only time Financial Aid looks at your situation is when YOU bring it to their attention. It costs nothing but a smidge of time and an email to ask about any new options. One day, you may get a pleasant surprise. I certainly hope these changes will assist you financially.
Next week, a two-part, real-life story about a school that rose from the ashes like a Phoenix. It is a great story with lessons in leadership, commitment, and perception. There’s not a lot of good news going around. This one will warm your heart.
Until Next Time,
All My Best,
Bonnie Burkett
