Changes to the FAFSA for 2010

Filling Out the FAFSA Just Got Easier

Filling out the FAFSA, the Free Application for Federal Student Aid, is about to get easier. Three major changes were announced by U.S. Education Secretary Arne Duncan at a press conference in June 2009. They include:

Changes to the Current Online Application

You may have already noticed the biggest change: instant Pell grant estimates and student loan eligibility statements. In addition, starting this summer, students who are married or over 23 can fast forward over 11 parent finance questions that no longer apply to them. And beginning in January 2010, low-income students will no longer have to wade through irrelevant asset questions.

Use IRS Data

Some 20 questions on the form duplicate information from families' tax forms. The federal Department of Education and Internal Revenue Service are testing an auto-fill feature. Students applying for 2010 spring semester financial aid will be able to upload their IRS tax data directly into the online FAFSA forms. If all goes well, the plan will be expanded to all students.

Congressional Changes

The White House is asking Congress to allow families to use their income tax information, not the slew of income and asset paperwork - bank statements, investment data, etc. - currently needed. Much of the information is difficult to verify, they said, it adds little to the decision-making formula, and the questions about assets penalize parents who have saved for their children's education. These changes would require a Congressional vote.