The FAFSA Simplification Act includes multiple changes to the Free Application for Federal Student Aid (FAFSA) application form. Here are some key changes to be aware of in the 2024-2025 FAFSA.
1. THE FAFSA WILL BE AVAILABLE LATER THAN USUAL
In the past, students and families could access the FAFSA form online every year on October 1. The 2024-2025 school year FAFSA is expected to be available in December 2023. According to the Department of Education, it intends to move the FASFA opening back to October 1, 2024 for the 2025-2026 academic year.
For students subject to state and/or college-specific filing deadlines earlier than the federal deadline, the delayed FASFA open date could make it harder for them to complete their aid application on time. Be sure to check your state and college filing deadlines.
2. THE FAFSA FORM WILL BE SIGNIFICANTLY SHORTER
You’ll see fewer questions on the 2024-2025 FAFSA, only about 36 instead of the previous 108. The online FAFSA application is dynamic, and the number of questions users see will depend on their financial situation and the answers they provide as they proceed through the form.
3. AUTOMATED TRANSFER OF TAX DATA WILL BE REQUIRED
Previously, students and parents could enter their tax information manually into the FAFSA form or download it directly from the Internal Revenue Service (IRS) website using the IRS Data Retrieval Tool. Beginning with the 2024-25 FAFSA, users of the online FAFSA will be required to use the IRS Data Retrieval Tool to provide their tax information.
4. THE EFC IS NOW THE SAI
As part of the FASFA changes, the term “Expected Family Contribution” or “EFC,” which has been used for many years to calculate students’ expected financial need for college, will be replaced with the term “Student Aid Index” or “SAI.” Both determine a student’s financial need by subtracting the EFC or SAI from the cost of attendance (COA).
There is a notable difference: unlike the EFC, which could only be as low as $0, the SAI can be a negative number, as low as –$1,500. The fact that the SAI can be negative will help make it easier for colleges to determine a student’s financial need, identify students with high levels of need, and account for expenses not included in a school’s published COA. Also, the new name, SAI, is intended to eliminate the misconception that “Expected Family Contribution” represented how much a family was expected to pay for one year of college rather than an index used to calculate financial aid eligibility.
5. STUDENTS MAY AUTOMATICALLY QUALIFY FOR PELL GRANTS
The 2024-2025 FAFSA changes how eligibility for Pell Grants (which are a type of need-based financial aid) is determined. Students will now automatically qualify for Pell Grants based on family size and income and will know the amount of their Pell Grant much earlier in the process — before they apply to colleges. Previously, students weren’t aware of their Pell eligibility — or the grant amount — until they received their college financial aid offers. Having this information earlier may encourage students to consider colleges that might otherwise seem too expensive.
According to an Urban Institute analysis, the changes to Pell Grant eligibility are expected to increase the number of students eligible for the maximum Pell Grant by 16 percent.
6. STUDENTS CAN SEND THE FAFSA TO MORE COLLEGES
On the online FAFSA application, students can list up to 20 schools to receive their information. Previously, the limit was ten schools. Now, students with long college lists can send their FAFSA information to all their schools simultaneously instead of adding some schools later. The limit is still ten schools for students who fill out the PDF version of the FAFSA.
7. THE INCOME PROTECTION ALLOWANCE IS INCREASING
Beginning with the 2024-2025 FASFA, the income protection allowance (IPA), the amount of income excluded from determining a student’s financial aid, will be increased. For dependent students, the IPA levels for the parents of dependent students with one student in college will increase approximately 20 percent above their current levels. For dependent students themselves and independent students without dependents, the IPA levels will increase about 35 percent above their current levels.
8. FAMILIES WITH MULTIPLE CHILDREN IN COLLEGE WILL NO LONGER GET A BREAK
The new methodology for calculating aid eligibility required by the FASFA no longer considers the number of family members attending college. Families with multiple college students could receive less aid for the 2024-2025 school year. However, individual colleges can consider the financial burden of having many students in school and adjust offers at their discretion.
9. STUDENTS MUST REPORT THE INCOME OF THE PARENT WHO PROVIDES THE MOST SUPPORT
In the past, dependent students of divorced or separated parents were required to report the income of the parent they lived with most of the year. The updated FAFSA requires dependent students of divorced or separated parents to report the income of the parent who provides the most financial support.
DON’T FORGET TO FILE THE FAFSA!
It’s important to stay in the know about FAFSA updates and keep track of the FAFSA deadlines for your colleges and your state. Colleges often award financial aid on a first-come, first-served basis, so completing and submitting the FAFSA as soon as possible after it becomes available is important. Even if you think your family will not qualify for federal student aid, you should complete and submit the FAFSA to be considered for federal student loans, scholarships, or other financial aid a college provides. For more information about the upcoming changes to the FAFSA and the availability of the 2024-2025 form, visit the Federal Student Aid Website.
10. THE CSS PROFILE is owned and operated by the College Board and is a more complex and personally invasive form. Schools with generous endowments use the CSS Profile; a list of 2023-2024 participating institutions is here.