Everyone has been asking about the proposed changes to the FAFSA and financial aid formula. This has been a constant question in support since the announcement came out last spring about the new FAFSA. We have been waiting anxiously, along with everyone, for the publication of the information about the FAFSA for 2022-23.
GuidedPath EFC Calculator and FAFSA
The GuidedPath EFC calculator includes the FAFSA formula. The FAFSA Formula updates are published in the Federal Register each July. The FAFSA Formula Guide is usually published by August/September. This year it was published on August 25, 2021.
Updated FM and IM Calculations Now Available
Our support team went right to work updating the tables in the EFC Calculator. Now you can use the EFC Calculator to look at EFC calculations for 2022-23 and previous years. This will help your students and parents to receive accurate net price comparisons for the colleges on their lists.
Little Changed on FAFSA for 2022-23
Don’t look for the announced changes to the FAFSA to take effect anytime soon. The major changes announced for the FAFSA do not take effect this year (See NY Times article). Some changes are slated to be implemented over the next few years and some are controversial enough that they are being fought. The name change to Student Aid Index (an old name brought back, I am told) will take effect later. Dropping consideration for multiple students in a family in college is an issue that many are upset about and trying to modify.
Tax Tables Remained the Same
The tax tables used to calculate the FAFSA remained the same as 2021-22. The state rates vary from a high of 9 or 10% (California, New York) to lows of 2-3% (Wyoming, Alabama). Knowing what state your student resides in helps to calculate an accurate FM or IM.
What about International Students?
Use the Other option in GuidedPath’s EFC calculator to calculate an EFC. Some colleges will give International students financial aid. Use this tool to calculate the potential for financial aid.
Drastic Change in Asset Protection for Single Parents
One extremely notable change in the FAFSA calculations for 2022 and beyond, is the change to Asset Protection for married and single parents. The asset protection for married parents was reduced considerably. For a parent, age 45, the amount of assets protected went from $6200 in 2021 to $3500 in 2022. It is much more dramatic for single parents. The asset protection has been dropped completely for any single parent. They now have an asset protection level of $0.00, regardless of age, family size, students in college or any other family factor.
Financial Aid and Scholarships
You can track student’s financial aid and scholarship awards through the college planning in GuidedPath. Use GuidedPath for cost comparisons once students receive admissions and financial aid awards. They will be able to use this calculator for early applications, including ED 1 and ED 2 and EA 1 and EA 2.
Other Financial Aid Resources Updated
Did you know GuidedPath offers resources for you to use with families? Check out the update resources here:
EFC Calculator Categories
College Financial Aid
College Financial Aid Awards