FAFSA Simplification

What does this mean for you?

The 2024-2025 FAFSA process is going to look a bit different than it was in the past. Don’t worry, we’re here to help keep you informed! The FAFSA Simplification Act was passed by Congress in 2020 and represents a significant overhaul of the processes and systems used to award federal financial aid. This includes the FAFSA form, need analysis that determines federal aid eligibility, changes in terminology, and many policies and procedures.

Schools will begin receiving FAFSA forms by the end of January 2024. To prepare for the FAFSA, you can set up your FSA ID. Each contributor will need their own FSA ID. A contributor is anyone who contributes information on the FAFSA (e.g., the student, parent(s), etc.).

What’s Changing on the 2024-25 FAFSA?

• Normally the FAFSA becomes available October 1st each year, but the 2024-2025 FAFSA will be available by the end of December 2023.
• There will be two-step verification and all FAFSA contributors must have an FSA ID to log into the online form.
• You’ll notice fewer questions when completing the 2024-2025 FAFSA and an easier way to transfer tax information directly from the IRS.
• With the 2024-2025 FAFSA, the term Expected Family Contribution (EFC) will be replaced with the Student Aid Index (SAI) – this is a new need analysis formula that we will use when awarding need-based grants and scholarships. The new need-analysis formula:
  • Removes the number of family members in college from the calculation,
  • Allows a minimum SAI of -$1,500,
  • Implements separate eligibility determination criteria for Federal Pell Grants based on federal poverty levels and family size.
  • The Custodial Parent on your FAFSA will be the parent(s) who provided you with more financial support, instead of the parent(s) with whom you lived more during the past 12 months.
  • Families who own a small business/farm that also serves as primary residence will now have assets of that business/farm considered in their need-analysis calculation.

Parent Without Social Security Number (SSN)

Follow these instructions from Federal Student Aid: How To Submit the 2024–25 FAFSA® Form if Your Contributor Doesn’t Have an SSN.

Who is a FAFSA Contributor?

Contributor is a new term being introduced on the 2024–25 FAFSA form. A contributor refers to anyone who is required to provide information on a student’s FAFSA. A contributor could be the student, student’s parent (biological or adoptive), step-parent, or spouse. Questions on the FAFSA will be used to identify contributors.

Being a contributor does not mean that they are financially responsible for the student’s educational costs, but it does mean the contributor must provide the required information on the student’s FAFSA.

Which parent is the contributor for a dependent student if divorced or separated?

Students who are considered dependent for financial aid purposes must provide financial information for the parent and step-parent (if applicable) who provided the most financial support to the student during the past 12 months.

Which parent(s) are listed if parents are unmarried, but living together?

For parents of dependent students that are unmarried, but who live together, both parents will be contributors on the FAFSA.

When is a spouse a contributor?

The spouse of a dependent student’s parent will be a contributor if the parent and their spouse were not married in 2022, but were married at the time the FAFSA was completed or if the parents were married in 2022 but filed their 2022 federal income tax returns separately.

The spouse of an independent student will be a contributor if the student and their spouse were not married in 2022, but were married at the time the FAFSA was completed or were married in 2022 but filed their 2022 federal income tax returns separately.

Is My Parent a Contributor When I Fill Out My FAFSA Form?

What can you do now to prepare?

Create an FSA ID

Anyone who is a contributor on the FAFSA must have an FSA ID. An FSA ID can be created at any time. It can take up to a week before an FSA ID can be used to complete and electronically sign the FAFSA.

For contributors who do not have a social security number, the Department of Education will be providing steps to create an FSA ID. This information will be available when the 2024-2025 FAFSA becomes available.

What will I need to complete the 2024-2025 FAFSA?

• You must have an FSA ID. If you don't already have an FSA ID, you will need to create one: Create FSA ID. Both students and parents (if applicable) need an FSA ID. This must be created 3-5 days prior to completing the FAFSA.
• Tax Returns and W-2s for 2022.
• Amount of child support received in the past year.
• Asset information (value of cash, savings & checking, net worth of investments, net worth of any businesses/farms).
• List of any federal benefits received.
• If you are a dependent student who must provide parent information, you will need the following information about your parent(s): first and last name, parent Social Security Number (if applicable), parent date of birth, and parent email address.
• If you are an independent student who is married and filed taxes separately, you will need the following information about your spouse: first and last name, Social Security Number (if applicable), date of birth, and email address.
• If you are a parent starting the FAFSA on behalf of your student, you will need the following information about your student: first and last name, date of birth, Social Security Number, email address, and phone number.

Resources

How To Correct or Update Your FAFSA® Form

What is the FAFSA Simplification Act?

What’s Changed for the 2024–25 FAFSA® Form? (Video)

Federal Student Aid Estimator