Changes to the 2007-2008 FAFSA

Despite the lobbying efforts of the financial aid community as well as a wide array of educational advocacy groups, the US Department of Education has not streamlined the federal financial aid process nor have they simplified the Free Application for Federal Student Aid (FAFSA). Changes to the 2007-2008 FAFSA include the following:

1.) The online FAFSA will include some additional student questions regarding high school academic preparation. These questions have been added to help determine a student's potential eligibility for the new Academic Competitiveness Grant. Unfortunately, the paper FAFSA will not contain these questions. Paper filers who are determined to be eligible for Pell grants will receive notification on their Student Aid Reports directing them to a website where they will be asked to certify what type of rigorous academic program (if any) they have successfully completed.

2.) Due to legislative changes that were incorporated in the Deficit Reduction Act, the FAFSA question regarding drug offenses has been altered. Only drug offences that occurred while students were receiving federal financial aid (Title IV funds) should be recorded. Since high school seniors are not receiving federal financial aid, the answer will be "no", regardless of any prior drug convictions.

3.) People who complete paper FAFSA's will be limited to listing only four colleges on the form. They will be able to add two additional schools by calling the FSA hotline at 1-800-4FEDAID. Online filers will still be able to list six colleges.

4.) Self-employed business owners who operate a "family owned" business and are applying for federal aid will get a break this year. Congress incorporated legislation into the Deficit Reduction Act that no longer requires "family" business owners to list the value of their assets on the FAFSA. In fact, family businesses with less than 100 employees are exempt from listing the value of their company assets.

5.) Students and parents will be asked to list any federal aid they received including free or reduced school lunches.
6.) There will be additional criteria listed to determine a student's independency status. Students who are considered to be on active duty in one of the branches of service, will now be considered independent.

If you or your students have any questions regarding the FAFSA, you can call our hotline at (866) 752-6443 or call the federal hotline, at (800) 4FEDAID.