The Education Department stated in the lead-up to the soft launch that it would update those figures for the 2025–2026 funding cycle rather than this year.
But now, a department spokesman has confirmed that this year will see those inflation adjustments.
According to the spokesperson, “for the 2024–2025 award year, the U.S. Department of Education will be updating the supporting tables used in the Student Aid Index (SAI) calculation that account for inflation.” Students will gain access to an extra $1.8 billion in federal student aid by doing this.
More pupils might be eligible for Pell Grants.
According to Justin Draeger, president of the National Association of Student Financial Aid Administrators, updating those figures will decrease the amount of a family’s income that is deemed available for educational expenses, resulting in a lower Student Aid Index and possibly increased eligibility for financial aid.
According to higher education expert Mark Kantrowitz, more middle-class and upper-class students would be eligible for a Pell Grant, a form of financial aid for low-income families. The maximum Pell Grant award is currently $7,395.
“Students who are just barely eligible for Pell Grants may be the most impacted,” stated Kantrowitz.
Lower-income students whose projected parental contribution is already zero will be less affected.
Schools are awaiting the FAFSA data.
The Education Department had previously stated that schools would receive the information in late January after students properly submitted their completed FAFSA forms.
“The Department has announced a significant operational change that clearly throws that date into question with less than a week to go,” Draeger stated.
Whether this impacts that timeframe or results in additional delays is still unknown. In order to start creating financial aid packages and to allow students and families adequate time to study and compare financial aid offers, schools are awaiting the results of the FAFSA.
The Education Department promised to provide further information soon regarding the update’s timeframe.
The FAFSA inflation adjustment from the Education Department will result in a $1.8 billion boost in student aid.
