DOE simplifies FAFSA

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Fulfilling a campaign promise, the Obama Administration recently announced a shorter, simpler, and more user friendly Free Application for Federal Student Aid (FAFSA). The changes—some of which are already in place while others will be phased in over the next few months—are designed to increase postsecondary enrollment, particularly among low- and middle-income students.

"President Obama has challenged the nation to once again have the highest percentage of college graduates in the world," said U.S. Secretary of Education Arne Duncan. "To do that, we need to make the college-going process easier and more convenient, and to send a clear message to young people as well as adults that college is within their reach. Simplifying the financial aid process is an important step toward reaching that goal."

In February, FAMU President James Ammons reported startling news on behalf of a statewide Presidential Work Group on Financial Aid: Florida’s college students failed to claim $24 million in financial aid that was available to them. One major reason for problem is that students and parents fail to complete the FAFSA because they consider it too long and complex.

The simplified FAFSA should help more students claim financial aid dollars that will help them through college.

Duncan outlined the following plan for streamlining the form.

-Since May 2009, the Education Department has provided instant estimates of Pell Grant and student loan eligibility, rather than forcing applicants to wait weeks. Links to graduation rates and other college information are also provided;

-Available summer 2009, enhanced skip-logic used in the new web-based FAFSA will reduce user navigation for many applicants by more than half;

-Starting in January 2010, students applying for financial aid for the spring semester will be able to seamlessly retrieve their relevant tax information from the IRS for easy completion of the online FAFSA. The Department of Education and the IRS will be working together to examine the possibility of expanding this option to all students in the future.

The Administration will also introduce legislation seeking statutory authority from Congress to eliminate financial information from the aid calculation formula that is not available from the Internal Revenue Service (IRS). This will remove 26 financial questions from the FAFSA form that have little impact on aid awards and can be difficult to complete. Only questions that rely upon information that applicants must already provide to the IRS would remain.
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