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2024-2025 FAFSA CHANGES

Big changes are coming to the Free Application for Federal Student Aid (FAFSA) application for the 2024-2025 aid year. The 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 need analysis that determines federal aid eligibility, changes in terminology, and many policies and procedures for schools that participate in federal student aid programs. *Last updated: September 15, 2023

 
 

WHAT’S CHANGING IN THE FAFSA?

Historically, the FAFSA has been available beginning October 1st each year. However, because of significant changes the 2024-25 FAFSA will not be available until sometime in December 2023. 

There are a number of benefits of the FAFSA simplification act, including a more streamlined application process and a better user experience for the FAFSA. Some fundamental changes include, but are not limited to:

  • The FAFSA will reduce the maximum number of questions from 108 to 46. And because the FAFSA on the web is dynamic, some students won't even be presented with all 46 questions. This streamlined format will simplify the application process.

  • Previously, users had the option to enter their tax information manually or use the IRS Data Retrieval Tool. Beginning with 2024-25, all persons on the FAFSA will be required to use the IRS Direct Data Exchange to share tax information or confirm non-filing status. This change makes it easier to complete the FAFSA and reduces the number of questions to be answered.

  • A contributor—a new term being introduced on the 2024-25 FAFSA—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 answers on the FAFSA will determine which contributors (if any) will be required to provide information.

    Contributors will receive an email informing them that they've been identified as such, and will need to log in using their own FSA ID (if they already have one. If they do not have one they will need to apply for one) to provide the required information on the student's FAFSA.

    Being a contributor does not mean they are financially responsible for the student's education costs, but it does mean the contributor must provide information on the FAFSA or the application will be incomplete and the student will not be eligible for federal student aid.

  • A notable terminology 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 aid eligibility and, unlike the EFC, the SAI may be a negative number down to -1500.

  • Previously, the FAFSA calculated the number of household members attending college into the EFC, dividing it proportionately to determine federal aid eligibility. Beginning with the 2024-25 FAFSA, the application will still ask how many household members are in college, but your answer will not be calculated into the SAI. As such, undergraduate students with siblings in college may see a change in their federal aid eligibility.

  • Families making less than 175% and single parents making less than 225% of the federal poverty level will see their students receive a maximum Federal Pell Grant award. Minimum Pell Grants will be guaranteed to students from households below 275%, 325%, 350%, or 400% of the poverty level, depending on household structure. Pell awards between the maximum and minimum amounts will be determined by SAI.

  • For dependent students, financial information was previously needed from the parent(s) the student had lived with the most in the last 12 months. With the new FAFSA, financial information will be required from the parent(s) who provided the most financial support to the student.

  • When required, families must now report the value of their small business or family farm. If the family farm includes the principal place of residence, applicants should determine the total net value of all farm assets and subtract the net value of their principal residence to determine the final value of their farm assets.

 
 
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what isn’t changing?

While the FAFSA is receiving an update and the aid eligibility calculation has been revised, there are a number of aid-related matters that will not change.

  • The FAFSA will still be required for consideration of federal and state financial aid every year.

  • Dependency status questions that determine if your parent(s) must complete the FAFSA will remain the same.

  • The FAFSA will still request tax information from the prior-prior year, which means you'll report 2022 income and assets on your 2024-25 application.

  • The questions regarding an applicant's gender, race, and ethnicity will have no effect on federal student aid eligibility and are included for statistical purposes and data collection only. In fact, schools won't even receive this data from the FAFSA.

WHEN SHOULD I SUBMIT THE 2024-2025 FAFSA?

Students who plan to begin classes in the fall of 2024, or those who are already attending, should complete the FAFSA as soon as it becomes available in December.