Financial Aid (FAFSA)
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.
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 reduce the maximum number of questions from 108 to 46. And because the FAFSA on the Web is dynamic, some students won't even be presented with all 46 questions. This streamlined format will simplify the application process and make it less daunting for students and their families.
Previously, the FAFSA only allowed students to list up to 10 colleges and universities.
Currently, the FAFSA is only available in English and Spanish. The 2024-25 application will be expanded to include the 11 most common languages spoken by English learner students and their parents.
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.
A contributor—a new term being introduced on 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.
A notable terminology update within the new FAFSA is the replacement of the term Expected Family Contribution (EFC) with the Student Aid Index (SAI). This name more accurately describes the number used to determine aid eligibility and, unlike the EFC, the SAI may be a negative number down to -1500.
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. As such, undergraduate students with siblings in college may see a change in their federal aid eligibility.
Families making less than 175% and single parents making less than 225% of the federal poverty level 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 on household structure. Pell awards between the maximum and minimum amounts will be determined by SAI.
For dependent students, 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. For more information on dependency status, see this infographic.
When required, 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.
What You Can Do Now
Make sure to create your StudentAid.gov account (FSA ID) — and remember your username and password so you can access and submit the 2024–25 FAFSA form when it’s available.
Find out if your parent(s) or spouse will need to be contributors (contribute their info on your FAFSA form).
If your parent(s) or spouse will need to contribute to your form, make sure each contributor creates their own StudentAid.gov account. Even if a contributor doesn’t have a Social Security number, they will be able to create an account when the 2024–25 form goes live.
Watch “Preparing for the FAFSA Form” playlist to understand what information and documents you’ll need to fill out the FAFSA form.
Gathering the Documents Needed to Apply
The FAFSA questions ask for information about you (your name, date of birth, address, etc.) and about your financial situation. Depending on your circumstances (for instance, whether you’re a U.S. citizen or what tax form you used), you might need the following information or documents as you fill out the FAFSA application:
- Your Social Security number (it’s important that you enter it correctly on the FAFSA form!)
- Your parents’ Social Security numbers if you are a dependent student
- Your driver’s license number if you have one
- Your Alien Registration number if you are not a U.S. citizen
- Federal tax information, tax documents, or tax returns, including IRS W-2 information, for you (and your spouse, if you are married), and for your parents if you are a dependent student:
- IRS Form1040
- Foreign tax return or IRS Form 1040-NR
- Tax return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federated States of Micronesia, or Palau
- Records of your untaxed income, such as child support received, interest income, and veterans noneducation benefits, for you, and for your parents if you are a dependent student
- Information on cash; savings and checking account balances; investments, including stocks and bonds and real estate (but not including the home in which you live); and business and farm assets for you and for your parents if you are a dependent student
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