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FAFSA Simplification ushers in new financial aid terminology
August 16, 2023
One of the first important lessons for newcomers to financial aid is terminology.
Now, with the arrival of FAFSA Simplification, financial aid professionals are having to re-learn some of the key terms and definitions.
In an August 7 Electronic Announcement, the Department of Education issued a cheat sheet of sorts, outlining new terminology related to the full implementation of the FAFSA Simplification Act and FUTURE Act.
“The phased implementation of these changes, which culminate in the upcoming 2024-25 FAFSA processing year, has created new terminology that often replaces older, well-known terms,” the Department said in the announcements.
In the announcement, the Department lists and defines what it says are many of the key terms and systems created or changed under the FAFSA Simplification Act and FUTURE Act.
The announcement separates the new terminology into the following categories: FAFSA processing, packaging aid, Federal Pell Grant Program eligibility, professional judgement, Prison Education Program eligibility, and Department of Education systems.