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FAFSA Application 2024 Updates: Discover the New Rules for This Year’s Application

Congress authorized this new implementation to roll over $35,000 in left over savings into Roth individual retirement accounts tax-free.

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FAFSA Application 2024 Updates

FAFSA Application 2024 Updates: Several upgrades have been made to the 529 education savings plan for 2024 that will help you save for college and pay for it.

Congress authorized this new implementation to roll over $35,000 in left over savings into Roth individual retirement accounts tax-free.

A so-called grandparent loophole was created by the Department of Education by December after taking a closer look at the Free Application for Federal Student Aid (FAFSA).

Using a 529 plan allows grandparents to fund a grandchild’s education without affecting the student’s financial aid eligibility.

The FAFSA Simplification Act simplifies the application process

It is often through new acts that Congress adds or eliminates these loopholes.

It’s important to note that the ‘grandparent loophole’ is not only for grandparents but for any nonparent including friends and relatives as well.

A relative, friend, or grandparent can reduce the cost of education for students, helping them both financially and with government programs.

This act also removes questions about selective service registration and drug convictions.

Beginning with the 2023-24 award year, there will also be questions about applicants’ sex, race, and ethnicity.

In the grandparent loophole, you can contribute the most amount, get tax-free growth and withdrawals, and even receive some in-state tax advantages.

Also Read: SNAP Benefits Update 2024: Exploring the New Bill Set to Impact Your Food Stamps

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