FAFSA Form & Financial Aid Form Blog

Tell me what you think - the FAFSA was developed to get a complete financial picture of a family’s situation. But there’s another agency that already does this - the IRS. What if the FAFSA were just a postcard that said:

Your SSN:
Your Parents SSN:
Do you authorize the IRS to release your tax information to the Department of Education: Yes/No
Sign Here:

If it were that simple, would you be more likely to apply for federal financial aid? Would more people get into school?

Call my show’s comment line and let me know what you think! Toll-free: 877-328-1565 x529

A new Dear Colleague Letter states new changes for FAFSA effective July 1, 2007 from the Department of Education. Included in this letter are the following changes:

+ Income protection allowance (IPA) for dependent students increases to $3,000 from $2,640
+ IPA for independent students moves up to $6,050 from $5,000
+ Asset contribution requirements fall from 35% for dependents to 20%
+ Asset contribution requirements fall from 12% to 7% for independent students

This is important because you are permitted to earn more money beginning this tax year that will not be counted by the FAFSA EFC next year.