Senate Bill 54 (FAFSA Awards), authored by Sen. Jean Leising (R-Oldenburg), easily passed the House this week 87-6. As amended by the House, the bill provides that a school corporation may receive an improvement award for increasing the percentage of its high school seniors who complete the Free Application for Federal Student Aid (FAFSA) beginning with the 2022-2023 school year. That coincides with when the FAFSA will be dramatically simplified due to recent action by Congress.
While the Chamber and other supporters endorsed the original version that made completing the FAFSA the default expectation for Indiana high school seniors, albeit with multiple opt-out options, we are pleased with the end result of the bill. Moreover, without the change to an incentive approach, the likelihood of passage in the House was greatly diminished. With all sides seemingly satisfied on the bill content, we fully anticipate it will become law and not encounter a late stage derailment like the one that occurred last year.
Since legislative leadership is requesting lawmakers minimize the number of conference committee proceedings in hopes of ending session a week early, the expectation is Sen. Leising will concur on the changes to her bill and send it straight to the full Senate for a final vote.
Ensuring a higher FAFSA completion rate has been a Chamber priority for several years because we see it as a key lever for boosting workforce development and breaking the cycle of generational poverty. Completing the FAFSA qualifies students for a variety of merit- and need-based financial aid opportunities available from the state and other sources. These are available to all Hoosier high school graduates regardless of family income, but they must file the FAFSA to be eligible.
Resource: Jason Bearce at (317) 264-6880 or email: jbearce@indianachamber.com
