What is the FAFSA Simplification Act?
The FAFSA Simplification Act provides an easier, more streamlined application process of applying for federal financial aid. Highlights of the new FAFSA, which opened December 31, 2023, for the 2024-25 academic year, include a reduction in the number of questions from 108 to 36, expanded eligibility for federal aid for more students, and reduced barriers for certain student populations. Scroll on to learn more.
Key Changes for 2024-25
Contributors
A contributor is anyone who is required to provide information in support of the student's financial aid application. A contributor is a parent, guardian, or student spouse. Each contributor will be required to have their own Federal Student Aid (FSA) ID and need to consent to their information being included on the student's FAFSA.
IRS Direct Data Exchange
Instead of entering their financial information manually, all contributors on a student's FAFSA application must consent for IRS Direct Data Exchange (DDX) allowing their data to be transferred directly to the FAFSA. There is no opt-out for this requirement. If a contributor does not consent, the student will be ineligible for federal aid.
Student Aid Index
The Student Aid Index (SAI) is replacing the Expected Family Contribution (EFC) formula. This is a new need-analysis formula that financial aid staff will use when awarding need-based grants and scholarships. This formula change links eligibility to family size and the federal poverty level, and will mean Pell grants will be offered to more students.
Unusual Circumstances
The Unusual Circumstances appeal is for applicants who would like to request a review of their dependency status for financial aid consideration. Under the new FAFSA, students will automatically be granted provisional independent status. For more information, visit Unusual Circumstance Appeal.
FAQs
- What if one of my contributors does not have an email address?
- If a contributor (a parent, guardian, or spouse) does not have an active email address, it is recommended that one be created in order to participate in the FAFSA application process.
- What if one of my contributors does not have a SSN?
- If a contributor does not have a Social Security number, they can still create an ID in order to participate in the application process. Federal Student Aid (FSA) is working on a solution for contributors without an SSN to confirm their identity via credit bureaus and other resources. More information can be found at What is an FSA ID, and will I need it to complete the FAFSA form?
- What happens if one of my parents, or contributors, does not consent to the IRS data transfer?
- There is no opt-out option for consent to transfer data from the IRS. If any of your contributors required to provide information on your FAFSA do not consent to the automatic transfer of information from the IRS, you will not be eligible for federal aid.
