Jan 23, 2024 - Economy

FAFSA fix to combat inflation could give some students additional aid

Sareen Habeshian

Illustration of a graduation cap with a sales tag on the tassel — Illustration: Sarah Grillo/Axios

The Department of Education is updating how it calculates federal student aid, the department confirmed with Axios on Tuesday.

Why it matters: The changes will give students access to an additional $1.8 billion in federal student aid, per the department.

Details: The Education Department will update the supporting tables used in the Student Aid Index calculation, which accounts for inflation for the 2024-25 award year.

Department officials have said their top priorities are providing as much clarity to schools and students as possible and ensuring all students can access their maximum aid awards.

Between the lines: The changes are in response to a math mistake in this year's FAFSA application, NPR reports.

The error would have caused some students and families to get less aid than they qualify for because their income would have appeared higher than it is.

What we're watching: Department officials said they will share additional details on the changes soon.

What they're saying: "The Biden-Harris Administration is committed to making higher education possible for more students, including through ensuring students qualify for as much financial aid as possible," an Education Department spokesperson told Axios.

Go deeper: What's going on with student loan relief

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FAFSA fix to combat inflation could give some students additional aid

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