Big changes are coming to the Free Application for Federal Student Aid (FAFSA) application for the upcoming 2024-2025 award year. This is the first major redesign of the FAFSA and process in over 40 years.
Why is it Changing?
“FAFSA® Simplification Act: On Dec. 27, 2020, Congress passed the Consolidated Appropriations Act. The law includes provisions that amend the Fostering Undergraduate Talent by Unlocking Resources for Education (FUTURE) Act and includes the FAFSA Simplification Act—a sweeping redesign of the processes and systems used to award federal student aid. Specifically, the law makes it easier for students and families to complete and submit the Free Application for Federal Student Aid (FAFSA®) form and expands access to federal student aid.”
Benefits to Students and Families
• A more streamlined application process
• Expanded eligibility for federal student aid
• Expanded eligibility for the Federal Pell Grant
• Reduced barriers for certain student populations
• A better user experience for the FAFSA form
• Enhanced data sharing with IRS to simplify the applicant’s experience
• 2024-2025 FAFSA release date
• Normally the FAFSA is available October 1st each year, but the 2024-2025 FAFSA will be available in December 2023.
• Streamlined application
• You’ll notice fewer questions when completing the 2024-2025 FAFSA and an easier way to transfer tax information directly from the IRS.
• New terminology
• Contributor: anyone who is asked to provide information on the FAFSA, a parent or spouse for example.
• Consent: Each contributor will need to provide consent to their Federal Tax Information (FTI) being included on the FAFSA.
• SAI: Student Aid Index (SAI) replaces the Expected Family Contribution (EFC). The EFC was used to calculate the amount a family could contribute to a student’s education. The SAI is now based on an actual index of the federal poverty guidelines.
• FTI: Federal Tax Information (FTI) transferred directly from the IRS.
• FSA ID
• There will be two-step verification and all FAFSA contributors must have an FSA ID to log into the online form. There will be a new process to get an FSA ID for parents and spouses without a Social Security num
Federal Student Aid: What is the FAFSA Simplification Act? | Federal Student Aid