American Family FAFSA Opportunity Act of 2025
The American Family FAFSA Opportunity Act of 2025 proposes a targeted change to how need-based federal student aid is calculated. It eliminates the so-called “sibling penalty” by adjusting the way the financial need assessment is computed when multiple family members are enrolled in college. Specifically, the bill would require dividing the assessment (the amount used to determine need) by the number of family members in the household (excluding the student’s parents) who are enrolled at least half-time in an eligible college program during the aid year. The resulting figure cannot dip below zero. This change would take effect upon enactment and would apply to award year 2025-2026 and all subsequent award years. In short, the bill aims to reduce the burden on families with more than one child in college by more favorably calculating need-based aid for those students.
Key Points
- 1Title: The act is named the American Family FAFSA Opportunity Act of 2025.
- 2Main change: Eliminates the sibling penalty in the need-analysis calculation (section 475(b) of the Higher Education Act).
- 3How it works: The assessment used to determine need is divided by the number of family members (excluding the student’s parents) who are enrolled or accepted for enrollment at least half-time in an eligible institution during the aid year.
- 4Safeguard: The resulting amount must not be less than zero (no negative need).
- 5Effective date and scope: Takes effect on enactment and applies to award year 2025-2026 and each subsequent award year, as determined under the Higher Education Act.