INDIANAPOLIS — There are some changes to financial aid that that parents need to know heading into the new year.
Families can start applying to Free Application for Federal Student Aid (FAFSA).
The process to apply for financial aid is a little less complicated, but because of the changes, the time to enroll has been pushed back, which could create some challenges for families and colleges.
The changes are a result of the FAFSA Simplification Act.
"Because it was so complicated, people weren't getting the opportunity for as much financial aid as they should have," said Randy Stegemoller of Class 101.
Stegemoller helps guide students and families through the process of enrolling for FAFSA. The new process applies to students enrolling in college fall of 2024.
He says the process is simplified. It allows families applying to securely transfer IRS information and families answer fewer questions during the application process.
However, because of the changes, students have to wait until January to apply. In the past, the application portal opened Oct. 1.
"So the colleges are going to have to wait to send the final packages until you send your FAFSA," said Stegemoller. "Normally, we would have already sent in the FAFSA and they would have been already responding to it.
The delay could hold up students who want to apply for scholarships, too.
"College costs a lot of money. We are talking many, many, many thousands of dollars," said Stegemoller. "And you're not going to know how much you owe until later in the process. So kids who might have been waiting to see what they owe in order to apply for scholarships, they've waited too long."
Some familes may have to fork out more money for college.
"As you have multiple kids in college, it's going to cost you more," Stegemoller said.
Some of the discounts for families who have multiple children in college aren't available anymore, but Segemoller says low income families will catch a break.
"Lower income families will have a simplification process and additional Pell grants available to them," he said.
Under the modification, 610,000 more students will be eligible for those Pell Grants. Stegemoller said it's important to get financial documents together, then create an account on studentaid.gov to begin the process.