Top 10 Changes to the FAFSA for the 2023 - 2024 FAFSA Season

Welcome back to another episode of Wine and Dine! In today's discussion, we will be diving into the changes in the Free Application for Federal Student Aid (FAFSA). As a financial planner, it is my goal to provide you with valuable information that can help you navigate the complexities of college planning. So grab a glass of wine, sit back, and let's explore the recent updates to the FAFSA.Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom! If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.comOr visit us at www.rootedpg.com/podcasts for full show notes and links!IntroductionThe FAFSA is a crucial tool for families seeking financial aid for college education. It helps determine the expected family contribution (EFC) and the amount of financial aid a student may be eligible for. In this episode, we will be focusing on the changes in the FAFSA, including the transition from EFC to the student aid index, the shorter FAFSA form, and the impact on small businesses and farms. We will also discuss the expansion of the Pell Grant and the changes in reporting assets and income. So let's dive right in!Key Takeaways:The FAFSA is transitioning from the expected family contribution to the student aid index.The FAFSA form is getting shorter, reducing the number of questions.Small business and farm owners will now have to report the value of their businesses on the FAFSA.The student aid index can be below zero, allowing for more financial aid for needy students.The Pell Grant formula is linked to family size and the federal poverty level, providing additional funding opportunities.Families with an AGI up to $60,000 will not be required to report assets on the FAFSA.Contributions to pre-tax retirement plans will no longer be added back to AGI for FAFSA calculations.Child support received will no longer be added to income, but the amount will be added to non-retirement assets.Financial help from family members or friends will no longer be considered untaxed income for students.Funds used from a grandparent-owned 529 plan will not be considered untaxed income for students.<br/>Adirondack WineryAdirondack Winery, nestled in the scenic beauty of Lake George and the Adirondacks, is a testament to the passionate pursuit of Mike & Sasha Pardy. Starting as a micro-winery in 2008, their dedication has transformed it into a renowned establishment with a state-of-the-art $2.6 million Tasting Room and Winemaking Facility in Queensbury. Throughout the years, they've seamlessly combined traditional wine-making with innovative techniques, resulting in award-winning wines that showcase the region's charm. With a history rich in family, innovation, and a dedication to excellence, Adirondack Winery invites you to be a part of their wine journey. Discover more and plan your visit at https://www.adirondackwinery.com/Conclusion and Future OutlookIn conclusion, the changes in the FAFSA aim to simplify the application process and provide more accurate financial aid assessments. While some changes may pose challenges for families, such as the inclusion of small businesses and farms in the formula, there are also opportunities for families to strategically manage their assets and increase their eligibility for financial aid.As the FAFSA continues to evolve, it is essential for families