This year’s FAFSA has seen several changes in an effort to simplify the process for applicants. One of those changes is known as the ‘Grandparent Loophole’ – Here’s what you should know:
- The 2023-2024 FAFSA application is due June 30, 2024.
- FAFSA, or the Free Application for Federal Student Aid, is a form utilized by universities across the country to determine whether a student is eligible for financial aid and loans. This year’s FAFSA has seen several changes in an effort to simplify the process for applicants.
- A new change this year is the ‘Grandparent Loophole’, which now makes college payments made by grandparents exempt from the form.
- The new system for the 2023-2024 application will take information directly from their tax returns through the IRS Data Retrieval Tool (DRT). As a 529 plan is not included on a student’s tax returns, any contributions made by grandparents will no longer impact students.
- If you are interested in how much aid your student may receive this year, the FAFSA website now includes a calculator called the “Student Aid Index”, which estimates a student’s aid eligibility.