For students getting ready to go to college, GPA is an important three-letter abbreviation that can help determine success in finding the right school. But three other letters are about to become equally important in helping students and families find money to pay for that education.
PPY, or “prior-prior year” refers to changes in the Free Application for Federal Student Aid (FAFSA) that will go into effect starting with the 2017-18 FAFSA application, available this fall, that will make it easier for families to file for financial aid.
The most important tool for students looking to find money to help fund their education after high school, a completed FAFSA helps schools create financial aid packages, states determine grant eligibility and qualify students for federal Pell and other grants.
The FAFSA determines financial need for aid based on looking at the tax return submitted by the family, or student if they are funding their own education. In the past, applicants had to wait until they or their family had completed tax returns for the previous year. If a student was completing the FAFSA for the 2016-17 school year, for example, they would be forced to wait for their 2015 tax return to be completed. Considering that many financial aid deadlines hit around May 1, the window of opportunity for getting in tax returns was very small, especially if a family waited until the April 15 tax filing deadline.
In 2015, however, President Obama signed changes to the FAFSA into law that help families apply in a more timely manner starting with the 2017-18 school year. The new FAFSA guidelines not only extend the application filing dates (starting October 1 as of this year), but allows families to use an older tax return, their prior-prior year return.
So in the case of the 2017-18 FAFSA, families can use their PPY return from 2015, as opposed to waiting to complete their 2016 tax return. By allowing this flexibility in which tax returns are needed for the FAFSA, families and students will no longer need to wait to complete the FAFSA as early as possible. And by filing the FAFSA early, students will get information about their financial aid opportunities earlier in the college application process, as well as make themselves eligible for state grants and scholarships well before deadline dates.
As with any changes, PPY might seem intimidating until families better understand the convenience it brings to the FAFSA completion process. Many organizations have created FAFSA toolkits to help navigate the changes in this year’s FAFSA. Both NACAC (National Association for College Admission Counseling) and NASFAA (National Association of Student Financial Aid Administrators) have created FAFSA toolkits aimed specifically at understanding the impact of PPY on this year’s application.
For students that will be looking for financial aid in 2017-18, these sites offer vital tips to navigating the changes in the FAFSA. But all families can benefit from learning how three simple letters will make obtaining college financial aid easier for their students when the time comes.