If you have a high school senior or college student, you’ve probably heard of the FAFSA, or Free Application for Federal Student Aid. Everyone with a student who will be attending college next fall should complete the FAFSA, as many schools require the application to consider your student for all aid and scholarships, even ones that are not need-based.
Normally the FAFSA opens in October. This year the FAFSA has several significant changes and should be opening later this month. Here are three big differences:
- It’s been simplified. The new form is down to only 44 questions, from 103. Most of those can be completed by linking the FAFSA to the IRS, and allowing the system to download your tax return.
- The aid calculation is different. There is no longer an allowance for multiple college students in one household. The value of a small business is reportable. And contributions for 401(k)s and other retirement accounts are included in income.
- Both parents have to file. In prior years, if parents were divorced, only the primary custodial parent had to file the FAFSA. Now, both parents have to file.
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