The Obama administration has made it clear that college affordability for the less fortunate is a high priority on the presidential to-do list. One of the major stumbling blocks in getting economically challenged students into college has been complete and utter frustration when it came to applying for federal funds through the FAFSA (Free Education for Federal Student Aid) application. Rather than make their way through the complicated form, many families would simply throw up their hands and walk away.
As Education Secretary Arne Duncan once said as he spoke off the cuff to a small group of reporters, “This damn form was killing us.” He was referring to his time as superintendent of Chicago’s public school system and the role the FAFSA form played in preventing students from low-income families from applying to college.
In order to combat this problem, the DOE intends to gradually introduce changes to address this and other problems recognized with the current application process:
- No longer requiring students with low incomes to answer questions about their parents’ financial assets.
- Questions concerning drug convictions will only be asked to returning students since it does not apply to first-year students.
- Potentially allocate Pell Grants based on the aid applicant’s adjusted gross income (AGI) vs. the current needs analysis formula, which takes into consideration the income and assets of both the parent and the student.
- Provide incentives to institutions that admit a larger ratio of students from low income families by increasing their access to federal money.
- Simplify the FAFSA form through the elimination of questions that would allow financial aid need, and therefore eligibility, to be based upon approximately 18 questions that are contained on the federal tax form. This would give the applicant the opportunity to instruct the IRS to send the information directly to the DOE, hence, streamlining the aid process. A test of this communication between government agencies that will allow students to send Mom and Dad’s tax information to the DOE for financial aid eligibility purposes is scheduled for January of 2010 for aid assistance during the spring semester of that same year.
- Potentially eliminating some or all of the asset assessment for every applicant.
- Consider eliminating interest subsidies for students as they attend school.
- Consider capping the maximum amount of federal loans available for the student to borrow based upon the federal poverty level for individuals.
Determining how to implement some or all of the above with the blessings of universities across America could potentially be a tricky road for the administration to maneuver. Most universities and states use information obtained from the FAFSA to determine student eligibility for the institution’s own funds. If they feel that the revised edition of the FAFSA is incomplete regarding the information needed to determine allocation of institutional funds, they may be compelled to create their own form to assist with this determination.
This, in essence, would create a new profile form for public institutions. And for those of you who have had experience with this form, which is used by approximately 300 elite and private institutions across the country, you may have already guessed that this may create a whole new set of road blocks in obtaining preferred financial assistance for those who are already expected to pay for their child’s education.
Copyright (c) 2009 Marc Hill
Marc R. Hill works full-time to help hard working American families afford college. His company, Reduce My College Costs, LLC, offers objective college planning services and publishes the the country’s only college planning subscription newsletter for families, the College Savings Tip Sheet. Receive your FREE trial issue by visiting ==>
http://reduceyourcollegecosts.info/
Article Source: U Publish Articles
Loading...