Revolutionizing Financial Aid
April 16 2024 - 11:38AM
The U.S. Department of Education updated the Free Application for
Federal Student Aid, widely known as the FAFSA, for all college
applicants for the 2024-25 school year for the first time in over
40 years. Student services staff at Eastern Kentucky University
(EKU) have been helping students as well as parents navigate the
new changes.
The updated FAFSA was created as an easier way for students and
parents to apply for financial aid for higher education. Students
who complete the FAFSA become eligible to gain federal grants,
federal loans, state grants, school aid and other types of aid that
require a FAFSA to be on file. While the FAFSA is centrally located
on StudentAid.gov, the student has the opportunity to send the
completed form to many different higher education institutions. The
FAFSA adds federal loan and need-based aid to students’ financial
aid packages.
“There are certain types of guaranteed financial aid federally
that are offered through FAFSA regardless of a student's financial
need,” said Zac Lewis, EKU’s director of central student services.
“Its primary focus is to essentially diagnose the student's
financial need by comparing the student and family’s relevant
contributors income and assets to produce a Student Aid Index,
which is an indicator of how much financial need that student may
have to attend college. Generally, the lower the number, the higher
the need.”
According to Lewis, students who complete the FAFSA show strong
indicators for retention and academic success. Even if students do
not intend to use the financial aid awarded when completing the
FAFSA, it can provide students with additional financial resources,
such as grants, loans or scholarships.
EKU offers several scholarships to students, some of which use
the student need indicators from completed FAFSA applications. Some
scholarships simply require a FAFSA on file for the student to be
considered. Additionally, students who complete their FAFSA become
eligible for Federal Work Study—opportunities for students to work
on campus and gain hands-on experience in a variety of fields while
completing their degrees.
Several changes were made to the FAFSA form to better assist
students and their families. The form is now more intuitive and
guides applicants through only the questions that pertain to their
situations instead of applicants having to fill out more than 100
questions on the original form.
Additionally, the FAFSA will now be able to use information from
the IRS to aid in completing the form. This will require students
and their financial contributors to provide consent and approval in
order for the IRS and FAFSA to work together.
“People are going to see and hear a lot about the changes for
consent and approval when they do the FAFSA,” said Jessica Bailey,
EKU assistant director of central student services. “That's where
they are giving consent and approval for the government to have the
IRS and the FAFSA talk directly to one another. It used to be sort
of a one-way retrieval. Now it’s more of a conversation.”
Bailey explained the importance of approval on the new form,
saying, “Students can't get as much financial aid if everybody
who’s determined to be a contributor doesn't provide consent and
approval.”
Another change made to the FAFSA form is the method by which
financial need is measured. Instead of the Expected Family
Contribution (EFC), the new FAFSA form measures the Student Aid
Index or SAI. Before, the EFC began at 0, which represented the
maximum financial need for a student and increased according to the
student and family’s income and assets. Now, the SAI will indicate
maximum financial need from 0 to -1500. The new range will also
increase to match the student and the family’s income and
assets.
In summary, the key changes to the FAFSA include:
- A more intuitive approach to students’ situations while filling
out the form—some students would only need to answer as few as 18
questions.
- Consent and approval will be required for the IRS to add
financial information to the applicant’s form.
- The Student Aid Index (SAI) is used as a means to measure
financial aid, instead of the Expected Family Contribution
(EFC).
“As we embrace the changes to FAFSA, we stand firm in our
commitment to ensuring every student has access to higher
education,” said EKU President David McFaddin. “Our dedicated
experts on campus are equipped to guide students through these new
changes to ensure that financial aid remains accessible and
transparent. At EKU, affordability isn’t just a goal but a promise
to every student.”
Filling out the FAFSA requires students to create a Federal
Student Aid (FSA) ID. Prior to the changes, creating a student ID
was relatively simple. However, Bailey suggests students and
families be prepared for a more in-depth process when creating a
FSA ID. The FSA IDs need to go through authentication since the
FAFSA form connects to the IRS database. In some cases, this can
take several business days once an ID has been requested.
Lewis said completing the form as early as possible ensures
students are set up for financial aid success. According to Federal
Student Aid, the form is now available for students to complete for
the 2024-25 academic year. Some financial aid opportunities like
state grants and some institutional scholarships, are awarded on a
first-come, first-served basis.
Incoming students who have never filled out the FAFSA and may
need guidance can seek assistance from their school guidance
counselor as well as the Kentucky Higher Education Assistance
Authority. EKU’s admissions office and Big E Central are also able
to aid prospective students in filling out the FAFSA for the first
time.
EKU prioritizes affordability for all students to achieve their
educational goals. EKU awarded more than $91 million in financial
aid to students in 2022. Approximately 74% of undergraduate
students at the university receive financial aid. Half of EKU’s
freshman class are first-generation college students, and the
university offers several resources to help students navigate
unfamiliar college processes, like the FAFSA. EKU’s Big E Central
has several virtual question-and-answer sessions and presentations
about the changes for students.
Sarah Baker
Eastern Kentucky University
859-582-9260
media@eku.edu