Episode 268

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Published on:

30th Aug 2023

Exploring the Changes in FAFSA: A Comprehensive Guide

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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If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

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Key Takeaways:

  1. The Income Protection Allowance will increase by about 20% for parents and 35% for dependent students.
  2. The allowance for state taxes is going away, resulting in an increase in overall income.
  3. The Employment Expense Allowance is being adjusted to allow married couples with only one working spouse to qualify.
  4. Students who can't provide their parents' financial information can now file as a provincial independent student.
  5. 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.

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About the Podcast

Money Roots
Money Roots with Amy Irvine
Welcome to "Money Roots," the podcast where personal finance becomes personal. Join host Amy Irvine, CEO of Rooted Planning Group, as she demystifies the world of finance and makes it approachable for everyone, from beginners to financial experts.

In each episode, Amy and her guests dig deep into the financial soil, planting the seeds of financial knowledge and helping you nurture your financial future. Whether you're looking to build a solid budget, invest wisely, or plan for retirement, "Money Roots" has you covered.

Get ready to explore practical advice, inspiring stories, and expert insights that will empower you to take control of your financial destiny. It's time to grow your money roots and thrive financially!

Subscribe to "Money Roots" now and join Amy on this exciting journey to financial empowerment. Let's put down some roots and flourish together.

About your host

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Amy Irvine

Uncorking Amy Irvine!!

If any of you have ever met Amy, you know she is passionate about
three things. Family, Finances, and WINE! This comes through in all
that she does and all that she is. When asked to describe herself she first and foremost states, “I am a wife, a daughter, and hopefully a good friend, who happens to also be a financial planner.” Amy holds a Master’s Degree in financial planning and is a Certified Financial Planner TM , Enrolled Agent, Certified College Financial Consultant, and a Financial Wellness Coach with over 25 years of financial planning and industry experience. She is the Founder and owner of Rooted Planning Group, (Formerly known as Irvine Wealth Planning Strategies LLC), which started in 2016 and has grown to include 6 other planners and 2 part-time staff members. Amy is definitely “doing it her way” and has been recognized by her financial planning colleagues as being a “disrupter,” a title she holds close to her heart and is proud of.

Uniquely, at the age of 44, she decided to not only start her only company, but to act on what she defined as her perfect life and she splits her time between Parrish, Florida and Jasper, New York.
On her website it states, “I love what I do, but I also very much enjoy warmth, good
conversation, wine tastings, and volunteering. New York is extraordinary in the summer and fall, but so is Florida in the winter.”
In 2018, she decided it was time to take the stigma out of finances by combining her passion for finances and wine. She started a podcast called “Wine and Dime,” which highlights a different wine and financial topic each week, and she released her book combining those same two passions, titled, “Uncork Your Finances.”
Many of you may know her as one of the co-founders of the Southern Tier Women’s Financial Conference – a day of collaboration and financial education, which will be hosting it’s sixth year!
To round out her volunteering passion, she often provides financial education to the
community through the financial management program of Cornell Cooperative Extension of Steuben County, she serves on the board of Faith-in-Action of Steuben County, volunteers for various Fund For Women of the Southern Tier events, works with the finance committee of the Arts Council of the Southern Finger Lakes, and serves on the board for the Corning Painted Post Historical Society (also known as Heritage Village).
In her downtime, you’re likely to find her with a glass of red wine from one of the many Keuka or Seneca Lake wineries that she highlights in her Wine and Dime Podcast.