CPAs and Advisors with Your Growth in Mind

Federal Student Aid Changes Proposed

The House Committee on Education and the Workforce has released a proposal to significantly change how the U.S. government distributes student aid. Announced last week as the Promoting Real Opportunity, Success and Prosperity through Education Reform Act, the plan involves deregulating and restricting oversight of portions of federal aid programs. Proposed changes include simplifying student aid options, eliminating the public service loan forgiveness program, and changing the federal work-study program by distributing money to colleges based on student need. Learn more about the proposed changes to federal student aid is available on the Inside Higher Ed website.

Topics: , , ,

FAFSA Mobile App Announced

In its efforts to update the federal student aid system, the Department of Education is planning to make the Free Application for Federal Student Aid (“FAFSA”) available via a mobile application. Office of Federal Student Aid Chief Operating Officer A. Wayne Johnson said the app would make it easier for students to file for federal aid and provide a modernized experience throughout the application process. Johnson also noted that the app could perform many of the functions that student loan servicers can provide borrowers via the web and telephone. The app will likely arrive in April. More on the future FAFSA mobile app is available. Read More.

Topics: , ,

Online FAFSA Tool Temporarily Down for Months

An online tool used by students to help them complete the Free Application for Federal Student Aid (“FAFSA”) might be unavailable for several months. In a joint statement last week, the Department of Education and Internal Revenue Service said the tool will be down until security protections are implemented. The added security measures are aimed to protect the taxpayer data of those who submit an application. Students should expect the tool to be back at the start of the next FAFSA season on October 1. More on the FAFSA online tool is available on the Inside Higher Ed website.

Topics: , , ,

FAFSA Changes Draw Mixed Responses

The Department of Education has announced that starting with the 2017-18 academic year, the Free Application for Federal Student Aid (“FAFSA”) will be released months earlier and the application deadline will be pushed up to October 1. In addition to the new schedule, FAFSA applications will automatically use the most recent federal tax data, which is a shift from having applicants estimate their family’s income data. While higher education groups believe the FAFSA changes will lead to a more simplified financial aid process, college access advocates feel the earlier deadlines could make it difficult for low-income students to receive aid.. Read More.

Topics: , , ,