FAFSA made some important changes in the 2007-2008 FAFSA form that may affect your student aid. So read on to see the recent changes.
Under the asset section, the net worth of family owned small business with less than 100 employees should no longer be reported as asset. And with regards with College Savings Plan, report the current balance of the plan as a parent asset (Q88) when you are reporting parental information and your parents own a qualified educational benefit plan.
On the other hand, you do not need to report the value of the College Savings Plan if you are reporting parental information and you own a qualified educational benefit plan. And if you are not reporting parental information and you own any of these qualified educational benefit plans or if you are married and your spouse owns one, you need to report the current balance of the plan as a student/spouse asset (Q44).
The maximum assessment rate for independent students with dependents drops to 3.29 percent while assets held in the parent’s name will continue to be assessed at a maximum rate of 5.6 percent. Assets held in a dependent student’s name in a qualified account no longer needs to be reported on the 2007-08 FAFSA.
Also, the 2007-2008 FAFSA now suspends any student who has been convicted for the possession or sale of illegal drug from receiving financial aid. The higher income protection allowances of students and the allowances of independent students slightly increase this year.
To know the complete changes in the 2007-2008 FAFSA form, please read here.