Illinois House Republicans

04/13/2024 | News release | Distributed by Public on 04/13/2024 15:55

Navigating This Year’s FAFSA

Navigating This Year's FAFSA

April 13, 2024

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.