Short-Term Funding Bill Would Rescind SAI Formula Change

A draft continuing resolution (CR) released in the House of Representatives yesterday that would fund the federal government through March 22 and forestall a government shutdown would also rescind the Department of Education’s latest update to the Student Aid Index (SAI) formula, which was just announced in an electronic announcement on Tuesday.

The provision, embedded in the CR, would now restore a floor of -1500 on the Student’s Contribution from Income (SCI) for the 2024-25 year, and set the floor at zero for the 2025-26 year, and every year thereafter.

The House is expected to vote on the CR in the coming days to avoid a government shutdown. Stay tuned to NASFAA’s Today’s News for more information.

Publication Date: 2/29/2024

Robert M | 2/29/2024 2:52:15 PM

As Financial Aid Administrators in this noble profession, we are all in this together, here for each other, and working on behalf of students, schools, taxpayers. We will get through this and just HOPEFULLY, there will be some betterment on the other side of this.

Best/Peace

#OnwardByAllMeans

Brandon S | 2/29/2024 2:0:54 PM

Applauding all who remain working in FA. We do it for our students, for our communities. Kudos! #bringbackliveFSAConference

David S | 2/29/2024 1:26:16 PM

Michelle C and Paul F are right on target (trigger warning - political opinions). We've heard from the chair of the House Education/Workforce Committee, on a NASFAA podcast no less, that fewer Americans should be attending college. They repeatedly propose the reduction of funding and elimination of well established aid programs. One side of the aisle is aggressively attempting to abolish all DEI efforts on campuses everywhere, and what is publicly funded financial aid but a tool by which socioeconomic diversity is promoted and enhanced? They would love nothing more than to see so many things about financial aid fail that they can claim that it doesn't work, it costs too much, it's what allows colleges to increase their price - none of which is remotely true - so as to support their argument that it should be drastically reduced or eliminated.

Sounds like hyperbole, but I think we've seen lots of things in real time with our own eyes in recent years that, had someone predicted them, they would have been written off as such. Years ago NASFAA promoted the #Fight4FinAid campaign, and I think the need for that is more urgent than ever. It's up to us to fight for our students and these programs that have changed millions of lives. Because make no mistake, some people who have power want them gone

Jesse H | 2/29/2024 10:36:54 AM

Look on the bright side, guys. With these two changes to the formula happening back to back, we should still start receiving 24-25 ISIRs no later than May of 2025. ¯\_(ツ)_/¯

Jeff A | 2/29/2024 10:33:23 AM

Having a floor of zero seems to make sense. They are saying leave it at -1500 for this year to send a message to ED to halt their plans to remove the floor. Of course, ED will not do so, and this will unlikely survive in the CR. This is laying a marker to clarify what they think was the congressional intent. And if they eventually do pass such a correction, then it is congressional intent by definition.

Paul F | 2/29/2024 10:15:47 AM

I was afraid that's what I was reading. Ugh.

As to the Congressional intend: recall that this whole thing came out of the 2020 Congress, and was done under a very different administration that actively wanted to eliminate the Department of Education. They made huge demands and then told ED they couldn't have any funding to accomplish their goals. This is neither an accident nor entirely ED's fault (at least the 'getting it done' part. The communication failures are entirely on them).

Michelle C | 2/29/2024 9:56:32 AM

Not the time, place or mechanism to address this matter. If one didn't know better you would think there are people who actively want financial aid to implode so they can say " see they don't know what they are doing", blame FSA and schools for wasting resources and keep us fighting over pennies and in constant apology mode. Well not this professional- congress owns all of this mess and I'll say that to anyone.

David V | 2/29/2024 9:55:22 AM

This is why more folks are leaving their profession in financial aid.

David S | 2/29/2024 9:26:34 AM

OK, they're just trolling us now, aren't they?

Robert B | 2/29/2024 9:15:32 AM

And...perhaps someone should mention that nowhere in the FAFSA Simplification Act does it use the phrase "investment farm." If Congress is going to fix this "error", perhaps they should also fix the language concerning the type of farm value which is to be included in the SAI formula.

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Short-Term Funding Bill Would Rescind SAI Formula Change

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