The Free Application for Federal Student Aid (FAFSA) is changing for the 2024-2025 aid year as a result of the FAFSA Simplification Act.
2024-2025 FAFSA Updates
The 2024-2025 FAFSA, which determines your financial aid eligibility for Fall 2024, Spring 2025 and Summer 2025, will open in December 2023. Changes to the FAFSA form include:
- Expanded eligibility for federal student aid.
- A streamlined application process with fewer questions, making the FAFSA easier for students and parents to complete.
- New financial aid terminology.
To prepare for the 2024-2025 FAFSA, you can:
Verify FSA ID(s)
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. FSA IDs can take a few days to be created and verified, so having yours ready in advance will allow you to complete the FAFSA as soon as it opens.
Confirm your existing FSA ID and email address, or 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. Be sure to opt in to SMS message alerts to receive up to date notifications and learn about upcoming changes to the FAFSA.
With the FSA ID, you can fill out the FAFSA when it’s available in December and sign your Master Promissory Note (MPN), if applicable.
Before the FAFSA opens in December, you can use the Federal Student Aid Estimator tool to find out how much federal student aid you may be eligible for in the 2024–2025 award year.
This tool estimates the Student Aid Index (SAI) for 2024–25 award year, not the Expected Family Contribution (EFC) for 2023–24 award year.
Complete the FAFSA
Complete the FAFSA as soon as it opens in December.
Instead of opening in October, the 2024-2025 FAFSA will open in December 2023. This change is temporary. After the 2024-2025 aid year, the FAFSA will be available in October as usual.
For a preview of the updated FAFSA, check out Federal Student Aid's October 2023 Financial Aid Bootcamps:
The U.S. Department of Education anticipates it will start sending FAFSA data to institutions at the end of January 2024.
The FAFSA will have fewer questions and fewer requirements. It will retrieve tax information using a direct data exchange from the IRS instead of the previous IRS Data Retrieval Tool.
The FAFSA is introducing new terminology, including:
A contributor is 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, and email address to invite them to complete the required portion of the FAFSA.
- All contributors—student, student's spouse (if married) and student's parent(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. In addition, small businesses and family farms are now considered assets.
- If you are a dependent student, you will report your parents' information and your own. 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.
Student Aid Index
The need analysis formula to determine financial aid, formerly known as the Expected Family Contribution (EFC), will now be the Student Aid Index (SAI). Unlike the EFC, the SAI may be a negative number. The maximum EFC was zero.
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.
Students may qualify for a maximum Pell Grant based on family size, adjusted gross income (AGI), poverty guidelines and tax filing status. Students with a negative or 0 SAI are eligible for the maximum Pell Grant.
FAFSA Submission Summary
The Student Aid Report (SAR) will now be called the FAFSA Submission Summary. This is the summary submission document you receive after completing the FAFSA.
The adjustments to the new Student Aid Index (SAI) calculation will expand Federal Pell Grant (nonrepayable aid) eligibility to more students.
- The FAFSA is still required annually for federal aid consideration and is available to U.S. citizens or eligible noncitizens.
- Questions introduced in 2023-24 about the applicant's sex, race, and ethnicity have no effect on federal student aid eligibility and remain only for statistical purposes.
- Dependency status questions to determine whether your parents must provide their information remain the same.
- The FAFSA will still request tax information for the year that is two years prior to the award year. For the 2024-2025 FAFSA, contributors will report 2022 tax information. Families who had significant reduction in income due to extenuating circumstances can still request special circumstances review.
- Federal education loan requirements remain the same.
- Academic requirements for federal aid are still required to maintain eligibility.