Welcome back, Wine and Dime listeners! In this four-part series on college planning, we have been discussing the major changes coming to the Free Application for Federal Student Aid (FAFSA). In part one, we explored college savings options, and in part two, we delved into ten changes to the FAFSA. Today, in part three, we will continue our discussion on the FAFSA changes, focusing on income and other factors that will impact students and their families.
But before we dive into the details, let's take a moment to appreciate the beauty of the upcoming fall season in upstate New York. As the fall colors start to grace our surroundings, I am reminded of the stunning landscapes in the Adirondacks. However, it's important to remember that we live in an equally beautiful area. So, why not act like a tourist in our own backyard? I am excited to explore the east side of Seneca Lake and visit Silver Thread Winery. If you have any recommendations or information about this winery, please let me know. Now, let's shift our focus to the changes in the FAFSA process.
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Key Takeaways:
- The Income Protection Allowance will increase by about 20% for parents and 35% for dependent students.
- The allowance for state taxes is going away, resulting in an increase in overall income.
- The Employment Expense Allowance is being adjusted to allow married couples with only one working spouse to qualify.
- Students who can't provide their parents' financial information can now file as a provincial independent student.
- Reporting for two household families will require information on both parents and spouses who provide the majority of the student's financial support.
Key Changes
- Income Protection Allowance increasing, but multiple students in college no longer a factor
- Employment Expense Allowance tweaked - now calculated based on total family income
- Option for students unable to provide parent info; can file as Provisional Independent
- New formula for reporting income if parents are divorced/separated
- Changes already enacted: Pell Grants for incarcerated students, required disclosure of aid adjustments
Timeline and Effects
- FAFSA available starting in December 2023, not October
- Delayed timeline could impact acceptance letters, grant deadlines, award letter timing
- Steps to take: Use Estimator Tool, get FSA ID, check college websites for updates
Winery Recommendation
Host Amy Irvine recommends visiting Silver Thread Vineyard on the east side of Seneca Lake in the Finger Lakes region.
Founded in 1982, Silver Thread is an owner-operated, boutique winery known for sustainably-grown estate wines. Acclaimed winemaker Paul Brock and wine educator Shannon Brock took the helm in 2011 and practice a holistic, regenerative style of farming called biointensive viticulture. The winery generates 100% of its energy needs from a 28kw solar array located on-site.
Silver Thread produces about 3,000 cases annually of premium vinifera wines like Riesling, Chardonnay, Cabernet Franc, and Lemberger. Wines are available in their relaxed tasting room, through the wine club, via mail order, and in select stores and restaurants.
The winery is tucked away off the main wine trail, overlooking Seneca Lake. Wine lovers will enjoy discovering this hidden gem and sampling outstanding, terroir-driven wines that capture the essence of the Finger Lakes.
Silver Thread is still being written - the team is constantly learning, improving their sustainable practices, and applying new knowledge. Thanks for joining their journey!
Conclusion and Future Outlook
In conclusion, the changes to the FAFSA process under the FAFSA Simplification Act will have a significant impact on students and families. While some changes, such as the increase in the Income Protection Allowance, provide relief, others, like the reporting requirements for two-household families, pose challenges. The expansion of the professional judgment process and the eligibility of incarcerated students for Pell Grants aim to provide more equitable opportunities for students. However, the delayed availability of the FAFSA this year may create additional stress and time constraints for families.
As we move forward, it is crucial for families to stay informed and prepared. Utilizing available resources, attending informational sessions, and staying updated on deadlines will help navigate the changing landscape of college planning. While the FAFSA changes may present initial difficulties, they also offer an opportunity for families to gain a clearer understanding of the true cost of education and explore available financial aid options.
Thank you for joining me on this journey through the changes in the FAFSA process. I hope this comprehensive guide has provided valuable insights and guidance. If you found this information helpful, please share it with your friends and family. Your support and feedback are greatly appreciated. Cheers to a successful college planning journey!
Helpful Links:
This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.
Visit www.rootedpg.com to learn more.
