FAFSA Changes 2024-25
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.
2024-2025 FAFSA is Now Available
Historically, the FAFSA has been available beginning October 1st each year. However, because of significant changes to the application and the rebuild of the FAFSA processing system, the 2024-25 FAFSA was not be available until December 31, 2023.
What has changed 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 be shorter and more user-friendly.
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.
Students may list up to 20 colleges.
Previously, the FAFSA only allowed students to list up to 10 colleges and universities.
The FAFSA will be available in more languages.
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.
Applicants will be required to use the IRS Direct Data Exchange.
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.
All "contributors" must provide financial information.
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.
The Student Aid Index (SAI) is replacing Expected Family Contribution (EFC).
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.
The number in college will not be used to calculate SAI.
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, Valencia
students with siblings in college may see a change in their federal aid eligibility.
Some students will automatically be awarded a Pell Grant.
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.
The parent responsible for submitting the FAFSA in cases of divorce or separation
has changed.
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.
Family farms and small businesses must be reported as assets.
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 isn't changing?
While the FAFSA is receiving an update and the aid eligibility calculation has been revised, there are several aid-related matters that will not change.
- For Valencia students, institutional aid will continue to be determined by the institution, not the FAFSA.
- The general types of aid available to Valencia students and federal student loan limits will not change.
- The FAFSA will still be required for consideration of federal and state financial aid every year.
- Dependency status questions that determine if your parent(s) must complete the FAFSA will remain the same.
- The FAFSA will still request tax information from the prior-prior year, which means you'll report 2022 income and assets on your 2024-25 application. Families with significant reductions in income can consider submitting an appeal.
- Valencia admission application deadlines will not change.
- The questions regarding an applicant's gender, race, and ethnicity will have no effect on federal student aid eligibility and are included for statistical purposes and data collection only. In fact, Valencia won't even receive this data from the FAFSA.
While the FAFSA is receiving an update and the aid eligibility calculation has been revised, there are several aid-related matters that will not change.
When should I submit the 2024-25 FAFSA?
New and returning students who plan to begin classes at Valencia in the fall of 2024 should complete the 2024-25 FAFSA now.