The 2024-2025 FAFSA debuts the largest changes to the application in generations!
Congress sets federal financial aid eligibility and the questions asked on the FAFSA. In 2020, legislation was passed to simplify the application process, questions asked on the FAFSA, and how aid eligibility is calculated. Traditionally, the application is available for students to complete on October 1st, however, due to these updates the form is expected to be released sometime in December 2023. Click here to see a comprehensive list of how the FAFSA has been simplified.
Key Changes to the FAFSA Application
Tax & Income Data:
- In previous years spouses of parents (if dependent) or students (if independent) would need to enter their tax information on the FAFSA. Starting with the 2024-2025 FAFSA, this tax information MUST be submitted using the IRS Direct Data Exchange (DDX) which is locked in the FAFSA form itself. This should make the process of transferring tax information easier and with less error as it is directly brought in through the IRS database.
Simplification:
- Simplifying the 2024-2025 FAFSA reduced the maximum number of questions that can be asked on an application from 108 to 46. Not every student will be asked all 46 questions and more information regarding the FAFSA Simplification can be found here.
End of the EFC & the beginning of SAI:
- A student’s federal financial aid eligibility is determined by the information provided on their FAFSA from both the student and parent. This information would be calculated and result in an Expected Family Contribution (EFC) number which financial aid staff can use as a guideline to award grants/loans. Starting with the 2024-2025 FAFSA, the new Student Aid Index (SAI) will replace EFC as it more accurately describes the process and updates how aid eligibility is calculated. Unlike the EFC which would end at 0, the SAI can be negative with the lowest possibility being -1500.
Student Aid Index (SAI) FAFSA Changes
No benefit for having siblings in college:
- The FAFSA would previously split the EFC proportionally to the number of students in one household going to college at the same time. However, this will no longer be the case moving forward and students won’t benefit from having other siblings attending school at the same time.
Automatic Pell Grant:
- A family making less than 175% and a single parent making less than 225% of the federal poverty income level will see their student automatically receive the maximum Pell Grant! Minimum Pell Grant funding will be guaranteed to any student between 275% - 400% of the federal poverty income level depending on the household structure. For more information on the federal poverty income level, click here.
Increase to Income Protection Allowances: An Income Protection Allowance (IPA) covers a family’s basic expenses and is not included in the final SAI score. New and larger IPA’s will lower the expected amount a parent would be expected to contribute to their student’s college expenses.
Who is a 2024-2025 FAFSA Contributor?
Any person who is required to put tax information on the FAFSA is a contributor.
- The student applying is a contributor.
- Parent(s) of the student if they are considered a dependent for federal aid purposes.
- If the biological or adoptive parents aren’t married and not living together, the parent who provided the most financial support to the student in the last 12 months.
- If the parent chosen above is remarried, that person would be a contributor as well.
- The spouse of a student is a contributor.
Each FAFSA contributor is required to have an FSA ID if they don’t have one already. After creating your FSA ID, you’ll gain access to your account in 3-5 business days. This ID is required to both sign/consent that the information on the FAFSA is accurate and to transfer tax data from the IRS.