FAFSA Simplification
2021 and 2022 Fiscal Year Student Aid Amounts, Including Changes to Federal Methodology, FAFSA, Pell Grants for Incarcerated Students, Direct Loans, and other Changes
Significant changes to federal student aid policy, including simplifying the Free Application for Federal Student Aid (FAFSA), expanding Pell Grant eligibility to incarcerated students, and the repeal of limitations on subsidized loan eligibility for undergraduate Direct Loans were attached to the FAFSA Simplification Act which was part of a larger bill called the Consolidated Appropriations Act, 2021.
A subsequent appropriations act (Consolidated Appropriations Act, 2022) authorized funding for FY22 Pell grants and made technical changes to the FAFSA Simplification Act.
Analysis of 2021 FAFSA Simplification Provisions
Analysis of 2022 FAFSA Simplification Technical Amendments
NASFAA Resources
- *UPDATED* Legislative Changes to Federal Methodology and the Pell Grant Program, 2021+
- *NEW* Detailed Summary Summary of Non-Pell/Federal Methodology Changes from the FAFSA Simplification Act and FAFSA Simplification Act Technical Corrections Act
- *NEW* Timeline of Effective Dates from the 2021-22 Consolidated Appropriations Acts
- 2024-25 Federal Methodology and Pell Formula Changes Flowchart
- Q&A on Changes to Federal Student Aid Policy Included in Consolidated Appropriations Act, 2021
- Press Release: Statement on Changes to Federal Student Aid Policy in FY 2021 Spending Bill
External Resources
NASFAA Today's News Coverage
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ED Announces Implementation of Repeal of Subsidized Usage Limit Restriction
June 14, 2021 - The Department of Education (ED) in a Federal Register notice and Electronic Announcement said it will early implement the repeal of the limitation on lifetime subsidized loan eligibility, known as Subsidized Usage Limit Applies (SULA), which cu... -
ED Details Implementation Plans for FAFSA Changes
June 11, 2021 - The Department of Education (ED) on Friday announced that it will employ a delayed, phased implementation of the changes made to federal methodology and the FAFSA as part of the Consolidated Appropriations Act, 2021. The statutory deadline for the ch... -
Removal of Number in College Yields More Equitable, Simple Application Process
January 28, 2021 - The 2021 Consolidated Appropriations Act contained significant changes to the Federal Methodology (FM) formula for determining federal student aid eligibility through the FAFSA. One particular change to the formula, however, has received more attenti... -
Appropriations Act Restores Pell Eligibility to Incarcerated Students, Establishes Eligibility Guidelines for Prison Education Program
January 26, 2021 - The 2021 Consolidated Appropriations Act included a provision that restored federal financial aid eligibility for incarcerated individuals and established participation requirements for prison education programs. Until the act was signed in December,... -
Enactment of Omnibus Expected in the Coming Days
December 23, 2020 - With Congress on Monday having cleared a massive package of legislation that would fund the federal government for fiscal year (FY) 2021, provide additional pandemic relief to higher education, and make a number of other higher education-related poli... -
Congress Releases Bipartisan Year-End Spending Deal, FAFSA Simplification, COVID Relief, and Other Student Aid Provisions
December 21, 2020 - In a marathon push before the end of the year, congressional leaders on Dec. 21, 2020, introduced the Consolidated Appropriations Act, 2021, a massive package of legislation that would avert a government shutdown and fund the federal government for f... -
NASFAA Deep Dive: Changes to Federal Methodology, Other Student Aid Changes From Spending Bill
December 21, 2020 - Several major student aid policy provisions were attached to the fiscal year 2021 Omnibus spending bill, through the Consolidated Appropriations Act, 2021, including FAFSA simplification, expanding Pell Grant eligibility to incarcerated students and ...