NATIONAL AND STATE IMPACTS OF FAFSA SIMPLIFICATION

All Pell Grants are estimated for a full-time student with cost of attendance (COA) greater than the maximum Pell Grant award.7 MEASURES The three most important measures from the analysis include: the difference between EFC and estimated SAI; the difference between current Pell Grant awards and estimated new Pell Grant awards; and the change in Pell eligibility. [...] Under the new formula, the percentage of students with $0 Pell Grants is expected to remain roughly the same (31.1%) while the percentage of students with greater than $7,000 is expected to increase to 52.5%. [...] However, the increase in Pell Grant awards and the increase in Pell Grant eligibility may have the effect of crowding out students’ eligibility for state grants. [...] As the number of students with SAI values below the standard EFC cutoffs for state grant eligibility, states may want to consider the EFC/SAI cutoffs for eligibility, the amount of grant aid awarded per student, the methods used for adjusting EFC, or the maximum number of awards granted each year. [...] As the number of students eligible for Pell Grants (both overall and at the maximum Pell Grant level) increases, the number of students eligible for state grant awards modeled on Pell eligibility is expected to increase as well.