Beginning with the 2017-2018 academic year, the FAFSA will use a two-year lookback. For example, 2016 and 2017 tax information would be used for the necessary portions of the 2017-2018 forms. This will prevent the amendments that were necessary in years past, which oftentimes would lead to significant aid package alterations.
With amendments to the FAFSA now eliminated for the vast majority of filers, the two-year lookback allows parents and students to make more clearly defined changes to their college savings plans.
For more on the FAFSA process changes and its impact on student financial aid, check out our article this Thursday.