How do the Financial Aid Application changes impact you?
President Obama recently announced FINANCIAL AID Application Changes. The changes are in the process for filing the Free Application for Federal Student Aid (FAFSA), the form submitted by students seeking federal student loans, grants, and work-study jobs. Effective with FAFSAs submitted for the 2017-2018 and later school years:
- Students will be able to submit their FAFSA as early as October 1 of the current school year instead of having to wait until the following January.
- The FAFSA will require income information from the “prior-prior” tax year (rather than the prior tax year).
These changes mean that families will be able to fill out FAFSAs for the 2017-2018 school year beginning October 1, 2016, using income data from their 2015 tax returns.
FAFSAs for the 2016-2017 school year will continue to be administered under the former rules. The FAFSA form will be made available on January 1, 2016, and will require 2015 tax return data.
Make sure your tax planning includes college strategies.