Among the numerous provisions buried in the 5,000-plus-page Coronavirus Response and Relief Supplemental Appropriations Act that was enacted late last year are measures designed to streamline the Free Application for Federal Student Aid, or FAFSA. The form is used to determine how much financial aid a student will receive from federal and state governments, colleges and universities. The changes will also expand eligibility for Pell grants and subsidized student loans for low-income students.
Starting with the FAFSA available for filing in October 2022, the number of questions will be reduced from 108 to 36, and they’ll be better aligned with information on federal tax returns. That means families will be able to use the IRS data-retrieval tool to answer more questions, which could save time and reduce errors.
Separately, the coronavirus relief bill extends a tax break that permits employers to contribute up to $5,250 a year, tax-free, to help pay off employees’ student loans. The provision was set to expire at the end of 2020.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Only about 8% of employers currently offer this benefit, but up to one-fourth of large companies have said they would provide it if the payments are tax-free, according to the Society for Human Resource Management.
-
Stock Market Today: Nasdaq Spirals as Netflix NosedivesA big earnings boom for credit card giant American Express helped the Dow notch another win.
-
Get These 40 Earth Day Deals and DiscountsMonday, April 22, is Earth Day. Many of your favorite retailers are celebrating with deals on sustainable products, recycling services, and more
-
403(b) Contribution Limits for 2024retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
-
Roth IRA Contribution Limits for 2024Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
-
7 Things Medicare Doesn’t CoverHealthy Living on a Budget Medicare Part A and Part B leave some pretty significant gaps in your health-care coverage. But Medicare Advantage has problems, too.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
-
When Is Amazon Prime Day?Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
