How the FAFSA Simplification Act Affects You

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.

2024-2025 FAFSA Available in December 2023

Historically, the FAFSA has been available beginning October 1st each year. However, because of significant changes to the application and the rebuild of the FAFSA processing system, the 2024-25 FAFSA will not be available until sometime in December 2023. Updates on an exact date will be posted here when announced.

 What’s changing with the FAFSA?

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, expanded eligibility for federal student aid, and reduced barriers for certain student populations (e.g., homeless and unaccompanied youth, incarcerated students, English language learners, and students from low-income backgrounds).

Some fundamental changes include, but are not limited to:

• The FAFSA will be shorter and more user-friendly

  
  The FAFSA will reduce the maximum number of questions from 108 to 46. Because of the logic built into the FAFSA website, some students won’t even have to answer all 46 questions. This will simplify the application process.
   

• Contributors must provide financial information

  
  A contributor—a new term for 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 don't already have 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.
   

• The Student Aid Index (SAI) is replacing Expected Family Contribution (EFC)

  
  Expected Family Contribution was a misleading label for a family’s ability to pay. The name suggested that the government expected the family to pay that amount, so it was changed to Student Aid Index (SAI) to more accurately describe the number used to determine aid eligibility.
   

• Applicants will be required to use the IRS Direct Data Exchange (IRSDDX)

  
  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 must provide consent for the Department of Education to receive 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 for most, that data will be automatically transferred into the application. This change makes it easier to complete the FAFSA and reduces the number of questions to be answered.
   

• Students may list up to 20 colleges

  
  Previously, the FAFSA only allowed students to list up to 10 colleges and universities.
   

• Some students will automatically be awarded a Pell Grant

  
  Families making less than 175% and single parents making less than 225% of the federal poverty level (https://www.healthcare.gov/glossary/federal-poverty-level-fpl/) 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 upon the household structure. Pell awards between the maximum and minimum amounts will be determined by SAI.
   

• The parent responsible for submitting the FAFSA in cases of divorce or separation has changed

  
  For dependent students (https://studentaid.gov/apply-for-aid/fafsa/filling-out#determining-your-dependency-status) , 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.
   

• Family Farms and small businesses must be reported as assets

  
  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.
   

• The number in college will not be used to calculate SAI

  
  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. However, you can request an adjustment (Special and Unusual Circumstances) from the Financial Aid Office if you have more than one family member in college.
   

• The FAFSA will be available in more languages

  
  Currently, the FAFSA was only available in English and Spanish. The 2024-25 FAFSA will be available in 11 languages!