FAFSA
The FAFSA Simplification Act (https://studentaid.gov/help-center/answers/article/fafsa-simplification-act) was passed by Congress in 2020 and represents a significant overhaul of the processes and systems used to award federal student aid. This includes the Free Application for Federal Student Aid (FAFSA) form, the needs analysis that determines eligibility for federal aid, changes in terminology, and many policies and procedures for schools participating in federal student aid programs.
FAFSA Availability 2024-2025
The FAFSA has been available starting October 1 of each year. However, due to significant application changes and rebuilding of the FAFSA processing system, the 2024-25 FAFSA will not be available until December 2023. Once the exact date is known, it will be published.
Important:
Both students and parents must create a Student Aid Account to obtain an FSA ID before completing the form.
If the student's parents are married to each other and file their taxes as "married filing jointly," then only one parent needs an FSA ID. If the parents file their taxes as "married filing separately," they will both need an FSA ID.
The Social Security Administration will now require verification of FSA IDs before tax information can be accessed, so applicants will need to wait at least three days for this process to be completed.
What's changing with the FAFSA?
There are several benefits of the FAFSA simplification act, including a streamlined application process and better user experience, increased eligibility for federal student aid, and reduced barriers for certain student populations (e.g., homeless, and unaccompanied youth, incarcerated students, English language learners, and low-income students).
Fundamental changes include, but are not limited to:
- The FAFSA will be shorter and easier to use.
- The FAFSA will reduce the maximum number of questions from 108 to 46. Because the FAFSA on the Web is dynamic, some students won't even be presented with all 46 questions. This format will simplify the application process and make it more streamlined for students and their families.
FAFSA Language Availability
Currently, the FAFSA is only available in English and Spanish. The application for 2024-25 will be expanded to include the 11 most common languages spoken by English learners and their parents.
Applicants will need to use IRS Direct Data Exchange (as applicable)
Previously, users had the option of entering their tax information manually or using the IRS's data retrieval tool. Beginning in 2024-25, everyone on the FAFSA must consent to the Department of Education receiving tax information or confirmation of non-filing status directly from the IRS. In a very small number of cases, students and families will have to enter their tax data manually, but in most cases, that data will be automatically transferred to the app. This change makes it easier to complete the FAFSA and reduces the number of questions to answer.
For Puerto Rico, data related to payroll income must be recorded manually. Earned income that is not taxed must be recorded manually.
All "taxpayers" are required to provide financial information.
A taxpayer, a new term introduced on FAFSA 2024-25, refers to anyone who is required to provide information on a student's form (such as a parent, stepparent, or spouse). A student's or parent's responses on the FAFSA will determine which taxpayers (if any) will need to provide information.
Taxpayers will receive an email informing them that they have been identified and will need to log in with their own FSA ID (if you do not already have an FSA ID, you can access Create Account | Federal Student Aid)
Student Aid Index (SAI) replaces the Expected Family Contribution (EFC).
A notable term update within the new FAFSA is the replacement of the term Expected Family Contribution (EFC) with the Student Aid Index (SAI). This name more accurately describes the number used to determine eligibility for aid, and unlike the EFC, the UPS can be a negative number down to -1500.
The number at the university will not be used to calculate the SAI.
The FAFSA calculated the number of household members attending college in the EFC, dividing it proportionally to determine eligibility for federal aid. Starting with FAFSA 2024-25, the application will still ask how many household members are in college, but your answer will not be calculated in the SAI.
Students who will automatically receive a Pell Grant.
Families earning less than 175% and single parents earning less than 225% of the federal poverty level (https://www.healthcare.gov/glossary/federal-poverty-level-fpl/) will see their students receive a maximum of Pell.
Which parent is required to file the FAFSA in divorce or separation cases has changed.
For dependent students, financial information was previously needed from the parents with whom the student had lived the longest, the last 12 months. With the new FAFSA, financial information will be required from parents who provided the most financial support to the student in the past 12 months.
Family-owned agricultural businesses and small businesses must declare themselves active.
When necessary, families must now report the value of their small business or family farm. If the family farm includes the place of primary residence, applicants must determine the total net worth of all agricultural assets and subtract the net value of their primary residence to determine the final value of their agricultural assets.
What's not changing?
While the FAFSA is receiving an update and the aid eligibility calculation has been revised, there are several aid-related areas that will not change.
The FAFSA will still be required to consider federal and state financial aid each year.
Dependency status questions (Dependency Status | Federal Student Aid) that determine whether your parents must complete the FAFSA will remain the same.
The FAFSA will continue to ask for tax information from the previous year, which means you will report 2022 income and assets on your 2024-25 application. Families with significant income reductions may want to consider filing an appeal. For guidance regarding the appeal, you can visit your local Financial Aid office.
Questions about the applicant's gender, race, and ethnicity will have no effect on eligibility for federal student aid and are included for statistical and data collection purposes only.
