Significant Changes to FAFSA

Feb 3

3 min read

The Free Application for Federal Student Aid (FAFSA) has undergone significant changes aimed at simplifying the application process and expanding access to financial aid for students pursuing higher education.

Here's an overview of the key updates:

1. Simplified Application Process

The FAFSA form has been streamlined, reducing the number of questions from 108 to 36. This change is designed to make the application quicker and more user-friendly, encouraging more students to apply for financial aid.

2. New Terminology: "Contributor"

A new term, "contributor," has been introduced to refer to anyone required to provide information on a student's FAFSA form. This includes the student, their spouse, biological or adoptive parents, or a parent's spouse. Contributors must provide consent for their federal tax information to be automatically transferred from the IRS into the FAFSA form.

3. Automatic Transfer of Tax Information

The updated FAFSA allows for the automatic transfer of federal tax information directly from IRS records, simplifying the process and reducing the likelihood of errors. This enhancement aims to make the application more efficient for students and families.

4. Changes to Financial Aid Calculations

The Expected Family Contribution (EFC) has been replaced by the Student Aid Index (SAI). While both metrics serve to assess a family's financial strength, the SAI is part of a broader effort to make financial aid calculations more transparent and equitable.

5. Impact on Families with Multiple College Students

Notably, the number of family members enrolled in college simultaneously will no longer be considered in need-based financial aid calculations. Previously, having multiple children in college could reduce the EFC, potentially increasing aid eligibility. With the introduction of the SAI, this factor has been removed, which may affect families with more than one child attending college at the same time.

6. Increased Support for Single Parents

The new FAFSA provides greater support for single parents by increasing the Income Protection Allowance (IPA). This change allows single parents to retain more of their income without it affecting their financial aid eligibility, thereby increasing their access to aid.

7. Application Availability and Deadlines

For the 2024–25 academic year, the FAFSA form was made available in December 2023, later than the traditional October 1 release date.he federal deadline to submit the FAFSA form is June 30, 2025. However, some states and colleges have their own deadlines for financial aid, so it's important to check for updates at StudentAid.gov/fafsa-deadlines.

8. Preparation Tips

To prepare for the FAFSA application process, students and parents are encouraged to create their FSA IDs in advance. This will facilitate the electronic signing of the FAFSA form and the retrieval of tax information. Additionally, gathering necessary documents such as Social Security numbers, federal income tax returns, and records of untaxed income ahead of time can help streamline the application process.

These changes reflect a concerted effort to make the FAFSA more accessible and to ensure that financial aid is distributed more equitably among students. Staying informed about these updates and preparing accordingly can help students maximize their financial aid opportunities.

Here's a citations page for the sources referenced in the blog post:

Citations