Report: Simpler FAFSA Would Mean Few Changes to State Grants

Simplifying the Free Application for Federal Student Aid would have little effect on eligibility for need-based state grants, according to a College Board study that could allay the concerns about relying only on Internal Revenue Service data -- not a more detailed listing of a student or parent's income and assets -- when awarding financial aid. The authors of the report, "Simplifying Student Aid: What It Would Mean For States," examined the possible consequences of relying only on data transferred from the IRS, which would make filling out the complex form much less difficult for students. (Some fear that the application process itself discourages students who would qualify for need-based financial aid.)

In a sample of five states that award need-based grants, the simpler form would have little effect: the number of eligible students decreased by less than 1 percent in Kentucky and Ohio and would increase slightly in Minnesota, Texas and Vermont, the study's authors found.