Nick Sciple, an investment analyst at The Motley Fool, dives into interesting discussions about recent market trends. They explore Occidental Petroleum's bold $12 billion acquisition of CrownRock and its debt strategy. The conversation shifts to Netflix, highlighting its financial strength and a surprising collaboration with Disney for content licensing. Additionally, they touch on Google's antitrust ruling and its impact on the tech landscape. Finally, insights on recent FAFSA changes round out the discussion, offering crucial advice for prospective college students.
Netflix has sufficient funds to be a buyer in the entertainment industry.
Changes in the FAFSA may result in delays and potential frustrations for students and families.
Deep dives
Changes to the FAFSA
The Free Application for Federal Student Aid (FAFSA) has undergone significant changes, with the new form being shorter and simpler. While this makes it easier for low-income students to qualify for the Pell Grant, other changes make it harder for middle and high-income students to receive aid. For example, the sibling loophole, which divided the parent contribution by the number of children in college, has been eliminated. Additionally, small businesses and family farms are no longer excluded as assets. However, 529 plans owned by grandparents and other relatives are no longer considered as assets on the FAFSA, which could be beneficial for families with limited income.
Delayed FAFSA and Potential Challenges
Due to the changes in the FAFSA, the application start date has been pushed back to December 31st from the usual October 1st, leading to potential delays in the awarding of financial aid. Furthermore, glitches and technical issues with the new form could arise, as there has been no public beta testing. One contentious change is the lack of inflation adjustments for certain financial aid calculations, resulting in students potentially qualifying for less aid than they are entitled to. This may cause frustration and uncertainty among students and families.
Implications of FAFSA Changes
The new FAFSA changes benefit low-income students, who will qualify for more financial aid, particularly through the Pell Grant. Over 500,000 additional students will qualify for the Pell Grant, with an additional 1.5 million eligible for the maximum grant. However, middle and high-income families may experience a decrease in their aid eligibility, as certain allowances and loopholes have been eliminated. The treatment of 529 plans owned by grandparents and other relatives has seen a positive change, as they are no longer reported as assets on the FAFSA, potentially benefiting families with limited income but wealthy relatives.
If you’re an entertainment company in need of some money, then Netflix would like a word. (00:14) Ricky Mulvey and Nick Sciple discuss:
- Occidental Petroleum’s acquisition of private energy producer, CrownRock.
- Disney licensing shows out of its walled garden.
- Why Netflix is can afford to be a buyer right now.
- Google’s antitrust loss against Epic Games.
Plus, (13:58) Robert Brokamp interviews Mark Kantrowitz the author of “How to Appeal for More College Financial Aid” about the recent changes to the FAFSA.