Specifically, according to the press release obtained exclusively by Business Insider, the update ensures the FAFSA formula is “in full alignment” with the FAFSA Simplification Act. The Act requires the department to expand Pell Grants to more students and link eligibility to the student’s family size and federal poverty level, beginning in the 2024-2025 school year.

The department estimates that its latest update to the formula will result in 7.3 million students becoming eligible for Pell Grants. Under Secretary of Education James Kvaal told BI that the update addresses how much students can afford to contribute to their educations based on earnings, and it will not impact the department’s timeline to send completed applications to schools in the first half of March.