The new financial aid formula for the 2024-25 academic year is set to make more students eligible for federal aid like Pell grants. However, it also means that parents won't get a break for having multiple children in college.
The old formula divided the expected family contribution (EFC) by the number of college students in the family. This meant that families with multiple children in college were eligible for more financial aid per child.SourceMoneyGuru-https://www.mgkx.com/4959.html
The new formula, called the Student Aid Index (SAI), does not take into account the number of siblings attending college. This means that families with multiple children in college may now receive less financial aid, or may have to take out loans.SourceMoneyGuru-https://www.mgkx.com/4959.html
For example, a family with one child in college may have an EFC of $10,000. If that same family had two children in college, their EFC would be divided in half, to $5,000 per child. Under the new formula, the family's EFC would remain at $10,000, regardless of the number of children in college.SourceMoneyGuru-https://www.mgkx.com/4959.html
This change could have a significant impact on families with multiple children in college. According to a report from the Brookings Institution, roughly one-third of dependent college students have a sibling in college. This means that millions of families could be affected by this change.SourceMoneyGuru-https://www.mgkx.com/4959.html
Financial-aid experts say that families should start planning now for how this change will affect them. They recommend that families start by estimating their EFC using the new formula. They can then use this information to compare their expected financial aid with what they received under the old formula.SourceMoneyGuru-https://www.mgkx.com/4959.html
Families who are concerned about the impact of this change should also contact their college's financial aid office. The office can help families understand how the new formula will affect their financial aid eligibility and can provide guidance on how to appeal their financial aid award.SourceMoneyGuru-https://www.mgkx.com/4959.html
The end of the sibling discount is a significant change for families with multiple children in college. However, families can take steps to prepare for this change and to minimize its impact. By planning ahead and contacting their college's financial aid office, families can ensure that they receive the financial aid they need to pay for college.SourceMoneyGuru-https://www.mgkx.com/4959.html
Here are some tips for families affected by the end of the sibling discount:SourceMoneyGuru-https://www.mgkx.com/4959.html
- Estimate your EFC using the new formula.
- Compare your expected financial aid with what you received under the old formula.
- Contact your college's financial aid office.
- Consider applying for scholarships and grants.
- Look into student loans.
- Start saving for college early.
The end of the sibling discount is a challenge, but it is not insurmountable. By planning ahead and taking steps to minimize the impact, families can ensure that they receive the financial aid they need to pay for college.SourceMoneyGuru-https://www.mgkx.com/4959.html SourceMoneyGuru-https://www.mgkx.com/4959.html