In a groundbreaking move, Congress passed the FAFSA Simplification Act in December 2020, as part of the Consolidated Appropriations Act of 2021. This transformative legislation promises to revolutionize the process of applying for federal aid, with significant implications for students and professionals in higher education. The changes, set to take effect for the 2024-25 Free Application for Federal Student Aid (FAFSA), will usher in a new era of accessibility and simplicity for applicants.
Under the guidance of Federal Student Aid (FSA), a revamped version of the FAFSA is being developed and hailed as the “Better FAFSA.” The FSA is confident that these modifications will have far-reaching benefits, making the application experience more streamlined and ensuring greater access to federal student aid. Here are the major changes that students and families can anticipate as they prepare for the 2024-25 FAFSA:
New Release Date
The 2024-25 FAFSA will see a departure from the traditional October 1 release date. Instead, it is scheduled to be available in December 2023. This adjustment allows for more comprehensive resources, training sessions, and informational materials to be made available to college advisors, financial aid administrators, and school counselors well in advance.
Form Simplification
The current FAFSA form, with its daunting array of over 100 questions, will undergo a significant transformation. The Better FAFSA will feature a streamlined questionnaire, comprising approximately 36 questions tailored to each applicant’s specific financial situation. This simplification is made possible through improved information sharing between FSA and the Internal Revenue Service (IRS). By leveraging federal tax information obtained directly from the IRS, the FSA aims to expedite the eligibility calculation process.
FSA ID Changes
To bolster security measures and enhance information sharing, the FSA ID will be a mandatory requirement for all individuals submitting information on the FAFSA form. This change ensures a higher level of protection for sensitive data. Additionally, individuals without a social security number will now have the opportunity to create an FSA ID and access the FAFSA application.
Estimated Family Contribution Becomes Student Aid Index
One of the most notable shifts in the new FAFSA is the transition from the Expected Family Contribution (EFC) to the Student Aid Index (SAI). The SAI will serve as the primary metric for assessing a student’s ability to contribute to college expenses. This change brings about alterations in the calculation formula, such as excluding the number of siblings or other family members enrolled in college from the need calculation.
Pell Grant Eligibility Changes
Eligibility for federal Pell Grants, a vital financial resource for many students, will be redefined based on family size and the federal poverty level. The new criteria will allow students to determine their eligibility before completing the FAFSA. Furthermore, the updated guidelines will reinstate Pell eligibility for incarcerated students and those affected by school closures, false certification, identity theft, or eligible for borrower defense.
Family Matters
Students with divorced, separated, or unmarried parents will now report the income of the parent providing the most financial support. This change ensures a more accurate representation of a student’s financial situation. Family size will be determined based on the tax return, eliminating the previous method dictated by the Higher Education Act. Notably, the number of siblings or dependents enrolled in college will no longer impact a student’s SAI, potentially altering aid amounts for families.
These sweeping updates to the FAFSA application process will have far-reaching implications for students, families, and professionals in the field of higher education. In anticipation of these changes, the F
SA has compiled a comprehensive list of resources, which is continually updated as the 2024-25 FAFSA release date approaches.
It is essential to note that the changes outlined above are not exhaustive. For more in-depth information, we encourage readers to visit the FSA website or refer to the complete summary of the FAFSA Simplification Act.
In Summary
Here are the major changes to anticipate in the 2024-25 FAFSA:
- New Release Date: The 2024-25 FAFSA will be released in December 2023, deviating from the previous release date of October 1 each year.
- Form Simplification: The Better FAFSA will feature about 36 questions (depending on the applicant’s financial situation), significantly reducing the previous count of over 100 questions. Improved information sharing with the IRS allows for a streamlined process.
- FSA ID Changes: The FSA ID will be required for all individuals entering information on the FAFSA form, creating an additional step in the process. Multi-factor authentication will also be mandatory for enhanced security.
- Estimated Family Contribution Becomes Student Aid Index: The Student Aid Index (SAI) will replace the Expected Family Contribution (EFC) as the measure of ability to pay for college. The new formula will introduce changes such as excluding the number of siblings/other family members enrolled in college from the need calculation.
- Pell Grant Eligibility Changes: Pell Grant eligibility will be linked to family size and the federal poverty level. Students will have an opportunity to know their Pell eligibility before completing the form. Additionally, eligibility will be restored for incarcerated students and those affected by school closures or false certification.
- Family Matters: Students with divorced, separated, or unmarried parents will report the income of the parent providing the most financial support. Family size will be determined based on the tax return, and the number of siblings/dependents enrolled in college will no longer impact the student’s SAI.