Recommendation to do away with the FAFSA or reduce it to 2 questions

[jym626]

http://www.nytimes.com/2015/08/23/upshot/fafsa-follies-to-gain-a-student-eliminate-a-form.html?hpw&rref=education&action=click&pgtype=Homepage&module=well-region&region=bottom-well&WT.nav=bottom-well&_r=1&abt=0002&abg=1

In a rare case of cross-aisle cooperation, congressional Democrats and Republicans are working on legislation that could simplify and speed the aid process. One bill, sponsored in the Senate by Lamar Alexander, Republican of Tennessee, and Michael Bennet, Democrat of Colorado, would cut the lengthy federal aid application, now longer than the typical 1040 Internal Revenue Service form, to just two questions.

We found that dozens of questions on the Fafsa contribute virtually nothing to the determination of grant aid. Why do so many questions matter so little? If a family has very low income, say $15,000, then the student is eligible for the maximum Pell Grant. We don’t need to ask whether the family receives food stamps. Similarly, if a family has a high income, say $100,000, then the student is not eligible for any Pell Grant, and we don’t need to ask about investments.

The Fafsa burdens families and prevents students from attending college, while doing little to target federal aid. Getting rid of the Fafsa could narrow the large gaps in college attendance that persist between the rich and poor in the United States.

And from an earlier article about their research:

Turns out that providing household income and family size gets you pretty close to the same distribution as you’d receive after plowing through the current 10-page form. The economists found that 91 percent of students would see a change of less than $500 (either up or down) in their awards.

http://blogs.seattletimes.com/educationlab/2014/06/24/fafsa-lamar-alexander-bill/

Some argue that doing away with the FAFSA and instead checking a box on a tax form would simplify matters and increase applications for low income students. Thoughts?

[mom2collegekids]

<<<
Similarly, if a family has a high income, say $100,000, then the student is not eligible for any Pell Grant, and we don’t need to ask about investments.

[QUOTE=""]

[/QUOTE]

They’re assuming that:

The form is ONLY used to determine fed aid, but we know that some schools use it for institutional aid.

The family only has one child in college

I hope they get rid of the term EFC since it is so misleading.

[kelsmom]

There is absolutely a movement toward streamlining the application process for the determination of federal aid. I think this is set to happen very soon (maybe in the 2017-2018 award year). The whole point of the FAFSA is to determine eligibility for federal aid, and the data shows that this shortened format will yield good results without frightening off the students/families who actually benefit the most from federal aid.

The flip side is: 1) I’m betting the number of parents requesting PJ’s to use more current income will increase (maybe not, though); and 2) schools with a decent amount of institutional aid will have to collect more info in order to distribute their own aid (either through their own forms or by using Profile). This sort of thing increases administrative burden … but then again, the burden of verification will be lessened.

[mom2collegekids]

<<<
schools with a decent amount of institutional aid will have to collect more info in order to distribute their own aid (either through their own forms or by using Profile).

[QUOTE=""]

[/QUOTE]

I think that is a good idea, particularly in Calif for the UC schools.

[twoinanddone]

Will they still provide an option for applying for aid if the parents do not file taxes?

This would, of course, allow the student to earn as much as he can without having it affect Pell, and assets would not be considered any more?

I think the results for those making $15000/yr would be easy, and those making $100k per year would be easy. It is the huge group with an AGI of $40-60k that might change, those currently getting a $2000 pell, or those who have business income.

[kelsmom]

Non-tax-filers are the ones who need the easiest application - these are the ones least likely to apply, because they don’t understand what is required. I don’t know what plan will eventually be implemented - there are several being discussed.

Statistics show that the vast majority of those in Pell-land have no assets to speak of. Some simplification proposals suggest eliminating asset questions completely, while others want to collect some info depending on the family’s situation.

I think the simplified application is coming relatively soon, but I honestly don’t know what form it will end up taking.

[mom2collegekids]

I would like to see students have the ability to apply for an unsub loan w/o providing ANY parent info…no co-op needed from parents in any way, shape or form.

[thumper1]

Here is my suggestion…since every student is eligible to take the Direct Loan, and there is no credit check or need for a cosigner…how about a one question FAFSA for those who only want the Direct Loan.

“Do you want the Direct Loan?”

[kelsmom]

That would only work for unsubsidized - remember, subsidized involves need.

And because many people are clueless as the day is long, requiring a FAFSA even if they only want unsub loans actually protects people from themselves. Believe it or not, a large number of people who think they won’t qualify for aid actually will … thus, the need to file a FAFSA. If it’s simplified, it won’t be that big a deal.

I have seen enough parents who have had to be talked into providing parent info for their kids to get aid to believe that allowing students to borrow unsub without parent info is not a good idea … if it’s too easy to say no, a lot of kids will lose out on Pell that they could have had.

Simplification and edumacation are the keys.

[thumper1]

Oops! I meant to put Unsubsidized!