National Public Radio [NPR] published an article Tuesday morning stating that the new Free Application For Federal Student Aid [FAFSA] form does not account for inflation. Unless addressed, student aid will be negatively impacted.
By: Ayla Ozturk
On Tuesday, January 9, 2024, National Public Radio published an article reporting a major mistake in the new FAFSA form.
The United States Department of Education recently overhauled the 2024-2025 federal aid year form after Congress enacted the FAFSA Simplification Act in December 2020.
Students and their families have been running into various issues accessing and filling out the form. However, a more serious problem has been discovered: Family finances are not being adjusted for inflation.
Despite lawmakers telling the U.S. Department of Education to develop an accommodating formula to ensure that a family’s income is fairly used to determine their eligibility for financial aid, the math has not been adjusted.
Also known as “income protection allowance,” the formula acknowledges students and families may appear to have more income at their disposal than they do. Many students will not receive the financial aid they need without this adjustment.
The legislation states, “The parents’ available income is determined by subtracting from total income (as defined in section 480)…Federal income taxes…an allowance for payroll taxes…an income protection allowance…an employment expense allowance” (Read the entire legislation here.)
According to the article, the Department of Education is debating whether to fix the error in time for students to meet deadlines and comply with the law.
A last-minute change of this size could delay college aid offers more than they already have. However, students would receive more financial aid.
The Department of Education would neither confirm nor deny if they planned to adjust the formula to NPR.
Ayla Ozturk
Ayla Ozturk, class of 2024, is a fourth-year journalism student passionate about leading the News section. She is dedicated to informing students and amplifying their voices through Government and Politics writing.
You can reach her at ayla.oz3769@vusd.us.
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