FAFSA Simplification
Due to the passing of the Free Application for Federal Student Aid (FAFSA) Simplification Act on December 27, 2020, as a part of the Consolidated Appropriations Act, the FAFSA is changing for the 2024-2025 aid year. The 2024-2025 FAFSA determines your financial aid eligibility for the summer 2024, fall 2024, and spring 2025 semesters.
You can expect the following changes:
- The FAFSA application process will be streamlined and easier for students to complete.
- New terminology will be added to the FAFSA.
You can learn more about the specific changes, timeline, and how to prepare below.
FAFSA changes for 2024-2025
Streamlined application process
The FAFSA will feature fewer questions, fewer requirements, and retrieve tax information using a direct data exchange from the IRS instead of the previous IRS Data Retrieval Tool.
New terminology and information
The FAFSA is introducing the new term contributor, which refers to anyone who is required to provide information on a student’s FAFSA form, including the student, the student’s spouse, a biological or adopted parent, or the parent’s spouse. Being a contributor does not imply responsibility for the student’s college costs.
Students will need the contributor’s name, date of birth, Social Security Number (SSN), and email address to invite them to complete the required portion of the FAFSA.
Contributors will need to provide information on their section of the FAFSA.
If your parents are divorced or separated, the contributing parent(s) is the parent (and their spouse, if remarried) who provided the greater portion of your financial support during the 12 months immediately prior to filing the FAFSA. It is not automatically the parent you primarily lived with during the past 12 months.
All Contributors – student, student’s spouse (if married), and student’s parents(s) (if a dependent student) – must provide consent to have tax data transferred directly from the IRS to the FAFSA. If consent is not provided by all parties, the student will not be eligible for federal financial aid. In previous years, transferring IRS data was optional. It is now required.
The need analysis formula to determine financial aid, formerly known as the Expected Family Contribution (EFC), will now be referred to as the Student Aid Index (SAI). Unlike the EFC, the SAI may be a negative number.
Small businesses and family farms are now considered assets.
The number of family members in college will still be asked on the FAFSA, but it will be excluded from the federal, state, and institutional financial aid calculation.
The Student Aid Report (SAR) will now be referred to as the FAFSA Submission Summary. This is the summary submission document you receive after completing the FAFSA.
Prepare for the FAFSA
To prepare to complete your FAFSA complete the following:
- Create an FSA ID on the Federal Student Aid website and assist contributors, such as your parent(s) or spouse, in creating an FSA ID. An FSA ID is an account and password that gives you access to the Federal Student Aid’s online system and serves as your electronic signature. With the FSA ID, you can fill out the FAFSA when it’s available, sign your Master Promissory Note (MPN), apply for repayment plans, and complete loan entrance counseling.
- You will need the social security number, email address, and birthdate of all contributors-many find it easiest for the student to complete the FAFSA with the contributor together versus sharing this information.
- Complete all admissions requirements with your admissions counselor so you are an admitted student when we receive your FAFSA. We only package Financial Aid for admitted students.
- Complete it as soon as possible at fafsa.gov
- n addition to completing the FAFSA you can also complete your Master Promissory Note and Entrance counseling at studentaid.gov/mpn/
