fafsa

What to Know About the FAFSA Changes

Each year, families seeking need-based financial aid to help pay for college fill out the Free Application for Federal Student Aid (FAFSA). Typically, this form opens on October 1st—right around fall application deadlines—but the FAFSA is undergoing some substantial changes for the 2024-2025 award year. 

These changes are due to the FAFSA Simplification Act enacted in 2022 and will go into effect beginning in the 2024-2025 award year. 

Overall, there will be fewer questions on the new, simplified FAFSA (the old FAFSA had more than 100 questions, and the new FAFSA will have less than 50), and the formulas that determine a family’s eligibility for aid have been updated for the first time in a long while. Other changes and adjustments throughout may impact your family’s experience of filling out the FAFSA as well as financial planning for college. 

When filling out the FAFSA for next school year, here are 8 changes to have on your radar:

A Later Timeline

This year, the FAFSA is scheduled to open by December 31, 2023. This is expected to be a temporary change for this award year only, but the timing might impact this financial aid cycle. 

College financial aid offices will receive the FAFSA much later this year than in previous years, so families might receive their financial aid award offers later than anticipated. Everyone should have their financial aid results in hand ahead of May 1, 2024, but families might not have a lot of time to compare all of their options before making a final decision.

Because the timeline is later than usual, families should plan to fill out the FAFSA as soon as it opens. Some needs-based aid may only be available on a first-come, first-served basis. Submitting your FAFSA quickly can increase your chances of qualifying for more funding.  

Everyone Needs an FSA ID

An FSA ID is the username and password needed to log into studentaid.gov, where the FAFSA can be filled out. Previously, only the student and the parent filling out the FAFSA needed to register for an FSA ID before accessing the FAFSA. 

Now, anyone who is required to provide information on the FAFSA form will need their own FSA ID to access and complete their portion of the form. The Student Aid website lists these contributors as “the student, the student's spouse, a biological or adoptive parent, or the parent's spouse.”

Students will not be able to submit the FAFSA until every contributor has their FSA ID. 

The EFC is now the SAI 

Important FAFSA terminology and formulas are changing. 

The Student Aid Index (SAI) is replacing Expected Family Contribution (EFC). This calculation determines the amount of financial aid a student can receive based on their household’s ability to afford the cost of college.  

Like the EFC before it, the SAI is used to calculate need-based financial aid. A family’s need is determined by:

SCHOOL’S COST OF ATTENDANCE (COA) - STUDENT AID INDEX (SAI) = FINANCIAL NEED

The SAI and EFC are similar, but the SAI differs in key ways for many families. To learn more about the new SAI methodology, check out this guide from the Department of Education. 

Students Can Send the FAFSA to 20 Colleges

Students can list more institutions, up to 20 schools, on their online FAFSA form. (Those filling out the paper PDF version of the form are still limited to 10.) 

Do you need to apply to 20 schools? Most likely not! If you’re curious about how to build your college list or how many schools you should apply to, check out our blog post on Building a Balanced College List.

The FAFSA is now available in more languages

This is a huge win for accessibility! Previously, the FAFSA was only available in English and Spanish. Moving forward, families can access the FAFSA in the 11 most commonly spoken languages in the US. 

Pell Grant Expansion

The Pell Grant is need-based financial aid determined by poverty guidelines, family size, and household income. Different from a loan, the Pell Grant does not need to be repaid. 

Under the new FAFSA, more students will qualify for the Pell Grant depending on their family circumstances and their SAI. 

If a student’s SAI exceeds the maximum Pell Grant award, they can still receive a partial grant depending on how their family size and household income relate to poverty guidelines. Additionally, the minimum possible SAI is now  -$1,500 where the old EFC metric stopped at a minimum of $0. 

Changes for families with more than one child IN college 

Previously, families would receive a “sibling discount” in instances where more than one child attended college simultaneously. The new methodology no longer considers the number of family members attending college at the same time when determining financial aid. 

This change means that families with multiple college students could receive less aid for the 2024-25 school year—even if those students are not filling out the FAFSA for the first time. However, schools can use their own institutional funds to adjust financial aid packages at their discretion to offset these new costs.

Changes for divorced families

The new FAFSA will use the income of the parent who provides the most financial support in divorced households. Previously, families reported the income of the parent the student lived with for most of the year.

Action Steps

While families wait for the FAFSA to open, here are some steps you can take to prepare. 

  • Have a family conversation about financial fit - Make sure everyone is on the same page about your family’s budget for college to avoid unpleasant surprises later on. Here are some blog posts on financial fit to help inform your discussion:

  • Create your FSA ID - Everyone contributing to the FAFSA can set up their FSA ID account before the FAFSA even opens. It can take a few days for the FSA ID to process, so setting this up ahead of time will save you time once the FAFSA opens.

  • Fill out the CSS Profile (if necessary) - The CSS Profile is a separate financial aid application in addition to the FAFSA. More than 200 colleges require the CSS Profile to distribute institutional aid. Some colleges will need both the FAFSA and the CSS Profile to be considered for financial aid. Note: there is a fee for each college (the irony of paying to apply for financial aid is not lost on us).

FAFSA Tips & Tricks

There are many steps to completing a college application: writing essays, filling out application questions, creating the activity list, asking for letters of recommendation, setting up an application portal after submitting… and we haven’t even gotten to financial aid!

The financial aid application season runs at the same time as the college application season, beginning on October 1st of each year with the opening of the FAFSA (Free Application for Federal Student Aid). While students are keeping up with their college applications, there are also a lot of steps for students and parents to follow to complete the financial aid process.

Here are some answers to commonly asked questions to help simplify the FAFSA process:

WHAT DO I NEED TO FILL OUT THE FAFSA?

Get organized before you file your financial aid documents. Here’s a list of the items parents and students will need to successfully fill out the FAFSA:

  • Your FSA ID - An FSA ID is a username and password that allows students and parents to sign the FAFSA electronically. Both the student and the parent filling out the FAFSA must create an FSA ID, and you will need these before completing the FAFSA. You can create an FSA ID before the FAFSA opens in October. You will use the same FSA ID every year the student files the FAFSA, so make sure to keep up with it!

  • Your SSN - If you are not a US Citizen, but meet certain eligibility requirements for federal financial aid, you will need your Alien Registration Number.

  • Your Federal Income Tax Return - Parents and students (if the student filed federal income taxes) will use tax information from two years prior to the fall the student plans to enroll in college. For example, if a student plans to begin college in Fall 2023, their family will use tax information from their 2021 tax return.

  • Records of any untaxed income - For example, child support, interest income, or veterans’ non-education benefits.

  • Records of your assets - For example, savings and checking account balances, records of investments, stocks, bonds, and real estate (excluding your primary residence).

  • List of schools you are applying to - You should go ahead and send the FAFSA to colleges even if you haven’t been accepted (or even applied) yet. You can always remove a school if you decide not to apply, but you could miss out on financial aid opportunities if you wait too late to add a school.

WHEN IS THE FAFSA DEADLINE?

Just like colleges set their own application deadlines—and one college can have multiple application deadlines—financial aid deadlines can also vary by college. Check with each school’s financial aid office to see their FAFSA deadline. Keep an eye out for any early “priority” deadlines or FAFSA deadlines associated with different application types like Early Decision or Early Action. Some deadlines can be as early as November 1st!

Make a list of all the financial aid deadlines and determine which college has the earliest. Aim to file the FAFSA and submit it to all colleges on your list by that date. Or, better yet, try to file your FAFSA by Halloween to get it out of the way!

WHAT IF I AM APPLYING TO MORE THAN 10 COLLEGES?

You can only list up to 10 schools at a time on the FAFSA, but there is a workaround for students with longer college lists. Within a few days of filing the FAFSA, you will receive an emailed copy of your Student Aid Report (SAR). The SAR is also sent to the colleges listed on the FAFSA.

To send the SAR to additional schools, log back into your FAFSA and select “Add/Update Schools.” Remove schools from your list—don’t worry, they’ve already received your SAR—and add new schools. Submit the corrections, and the new schools will then receive your SAR. Just remember that if you had to make any corrections to your actual FAFSA that you add back the schools you deleted so they get the updated version as well!

WHAT IS VERIFICATION?

About one-third of FAFSA applicants are chosen for verification to determine the accuracy of what’s reported in their FAFSA. Don’t assume you’ve done anything incorrectly! You will be notified in your SAR about verification and contacted by the individual colleges to provide documentation like items from the list above. Be sure to follow instructions by the college’s deadline!

WHAT IS THE CSS PROFILE?

The CSS Profile is an additional financial aid application that is different from the FAFSA. It is required by more than 200 colleges and is used for institutional aid rather than federal aid. Some colleges will require both the FAFSA and the CSS Profile to be considered for financial aid. You complete the CSS Profile through College Board (yes, the SAT and AP people). There is no limit to the number of colleges you can list on the CSS Profile, but there is a small fee for each college (the irony of paying to submit an application for financial aid is not lost on us).

WHAT ABOUT FINANCIAL CHANGES?

If your financial situation has decreased since the 2021 tax year, you will still use your 2021 income tax returns when filing the FAFSA. Then, contact the colleges where you have sent the SAR to explain and document your change in income. The college may have a process in place, like an additional form for you to fill out. Officials in the financial aid offices can assess your situation and may adjust your FAFSA form or financial aid award.

If your situation changes after you file the FAFSA, you cannot update the FAFSA itself with new information. Similar to above, contact the colleges on your list to explain your family’s situation and follow any steps to request an adjustment to your FAFSA.

Don’t let the FAFSA process intimidate you! Check out our other free resources to simplify financial aid: