FAFSA 2024-25: Important Changes You Should Know

The FAFSA Simplification Act has brought significant changes in how students will be offered financial aid. Families will see these changes in effect for the 2024-25 academic year.

One of the first big changes you will see is the transition from Expected Family Contribution (EFC) to Student Aid Index (SAI), which determines student’ eligibility for certain types of federal student aid. The SAI is determined with a formula that considers information provided on the FAFSA form and federal tax information retrieved directly from the Internal Revenue Service.

With the new formula, there have been significant changes to determine need, such as:

• Number of family members in college no longer considered
• SAI can now be a negative number (minimum -1,500)

Other changes to note:

• Parent(s), guardian(s), or spouse, who provide financial support to the student are considered “Contributors” and will each have their own FSA ID.
• 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.

For more details on the upcoming changes resources and informational webinars, visit FAFSA Simplification.

Remember, FAFSA will now be launched in December instead of October 1st, but the priority date for submission is still be March 2nd.