By MorraLee Keller, Senior Director, Strategic Programming
Reading time: Two minutes
The Office of Federal Student Aid (FSA) released updated guidance in early January for answering the Free Application for Federal Student Aid (FAFSA) question about a student’s receipt of free/reduced school lunch programs (FRPL). This question is important
because those who indicate on the FAFSA that they received FRPL can skip FAFSA questions about financial assets. For families with incomes under $60,000, this updated guidance has no effect, as they would not have been required to report assets on the FAFSA anyway.
The updated guidance says that families should check the box indicating FRPL receipt only if they meet the US Department of Agriculture (USDA) income eligibility guidelines for receiving FRPL. Previous FSA guidance instructed “anyone who received” the benefit to check the box. This updated guidance differs from what the National College Attainment Network (NCAN) included in the in-person trainings and webinars we conducted
throughout 2023 and in January 2024. Please update any FAFSA completion materials you created based on those trainings.
The FRPL question is complicated because there are eight states with universal free lunch programs and hundreds of school districts around the country that have a community eligibility program, which means every student in the district receives free lunch
no matter their family income. FSA’s updated guidance means that those families with income over $60,000 should consult the federal USDA guidelines to see if their income would allow them to qualify for the program and, if so, check the box.
The updated guidance comes from two FSA sources. First, the help text with the FRPL question on the FAFSA reads:
This help text is somewhat general in nature, but the second and more specific source is the 2024-25 Federal Student Aid Handbook released on January 5 in
Chapter Two, Filling Out the FAFSA, which reads:
A student may be eligible to have their assets excluded from the SAI calculation if they (or someone in their family) received one (or more) of the following federal benefits during the 2022 or 2023 calendar years.
Earned income credit (EIC)
Federal housing assistance
Free or reduced-price school lunch*
Medicaid
Refundable credit for coverage under a qualified health plan (QHP)
Supplemental Nutrition Assistance Program (SNAP) Supplemental Security Income (SSI)
Temporary Assistance for Needy Families (TANF)
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
*Some individuals may receive free or reduced-price school lunch due to community eligibility rather than household eligibility. Students should only indicate that they received free or reduced-price school lunch on the FAFSA form if they meet theincome eligibility guidelines published by the US Department of Agriculture (emphasis
added).
NCAN continues to stay in direct communication with FSA as these critical issues arise. We will continue to seek their insight and share what we learn with our members as quickly as we have reliable information to share. Thank you for all of the support
you are providing to students and families during this tricky transition to a new form and process.
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