Penn pledges to meet 100% of demonstrated need amidst FAFSA overhaul

The newly implemented FAFSA Simplification Act will bring changes to FAFSA Aid for the 2023-24 admission season.

As a part of the Consolidated Appropriations Act, the FAFSA Simplification Act was enacted into law in 2021 and amended in 2022. Changes include increasing the number of Pell Grant recipients beginning in 2024, permitting incarcerated students in federal or state facilities to receive Pell Grants, and removing questions about applicants’ Selective Service and drug convictions.

The multi-step process by the Department of Education to simplify the process of applying for financial aid is set to complete its final phase in time for the 2024-25 application season. 

FAFSA will also introduce a new measure — the Student Aid Index — to replace Expected Family Contributions to gauge a student’s federal financial aid eligibility. Penn will continue to use EFC for a student’s overall financial aid eligibility. FAFSA will no longer take multiple siblings at other institutions of higher education into consideration when determining financial aid awards. 

The FAFSA application will now open in December 2023, compared to Oct. 1 in previous years. Although Early Decision applicants cannot submit their FAFSA application by Penn’s Nov. 1 Early Decision Deadline, Penn will calculate their financial aid awards based on the non-FAFSA financial aid forms.

The amount of money coming directly from the University given to an Early Decision applicant will be informed by and will supplement the amount of money that the applicant receives from the federal government. According to Penn admissions, the amount a family is expected to contribute will not increase after the initial financial aid award is given and FAFSA results are released. 

“We use the FAFSA to understand your eligibility for federal aid, but it will not impact our ability to meet 100% of your demonstrated need," Penn Admissions wrote.