Student Financial Aid News

Huge news day today. From the Washington Post:

Education Secretary Arne Duncan is expected to announce today an effort to streamline the complicated process of applying for federal financial aid for college. The Free Application for Federal Student Aid (FAFSA), which includes more than 100 questions about income and assets, is so difficult that some parents pay private companies to fill it out for them or just give up. By Education Department estimates, about 1.5 million students would probably be eligible for Pell grants — which are for low-income families — but do not apply.

And CNN:

The Department of Education plans to unveil a shorter FAFSA on Wednesday, cutting out more than a quarter of the questions and slashing the online version from 30 screens down to just 10.

Commentary

This will be great news for students when the 2010-2011 FAFSA opens up for business on January 1, 2010. I’ll be interested to see how it impacts College Goal Sunday as well. Students beginning college this fall will not be impacted.

The bigger picture question: by simplifying the FAFSA, will some students who are currently eligible for aid become ineligible, and vice versa? We’ll know more later today when the press conference occurs.

Also breaking from the Department of Defense:

The Defense Department announced today its policy for transferring educational benefits to the spouses and children of service members under the “Post 9/11 GI Bill,” which takes effect Aug. 1, 2009. Career service members on active duty or in the selected reserve on Aug. 1, 2009, and who are eligible for the “Post 9/11 GI Bill,” may be entitled to transfer all or a portion of their education entitlement to one or more family members. To be eligible, service members must have served in the Armed Forces for at least six years, and agree to serve four additional years, from the date of election to transfer. Service members with at least 10 years of service, who by DoD or service policy are prevented from committing to four additional years, may transfer their benefits provided they commit for the maximum amount of time allowed by such policy or statute.

Service members may be eligible for the “Post 9/11 GI Bill” if they served at least 90 aggregate days on active duty on or after Sept. 11, 2001, and were honorably discharged. Based on the length of active duty service, members are entitled to a percentage of the cost of tuition and fees, not to exceed the most expensive in-state undergraduate tuition at a public institution of higher learning. Members not on active duty may also receive a monthly living stipend equal to the basic allowance for housing payable to a military E-5 with dependents, and to an annual $1,000 stipend for books and supplies.

Commentary

Great news for our military families, as these transferable benefits will make college free for some kids currently struggling. Contact your VA education officer to see how to take advantage of the benefits and what other responsibilities will be incurred.

Scholarship Update

For Scholarship Points members, new activities have been posted that will help you earn even more points. Check out the new weekly Points activities along with some activities you can do with your blog. Our next drawing is June 30, 2009!