The 2024-25 Free Application for Federal Student Aid (FAFSA®) ushers in the biggest changes made to the aid application in generations.
How federal aid eligibility is determined, and, by default, what is asked on the FAFSA® are set by Congress. Legislation passed in 2020 was aimed at simplifying the application process and brings about several changes in calculating aid eligibility beginning with the 2024-25 academic year.
There will be three more obvious changes that all families will experience when completing the new FAFSA®.
The FAFSA® will reduce in maximum questions from 108 questions to 46. And because the FAFSA® on the Web is dynamic, some students won’t even be presented with all 46 questions. Recent FAFSA® filers saw some questions dropped, and others will no longer be asked due to the way that tax and income information is now gathered.
Previously, students, a student’s spouse (when married), and parent(s) (when students are dependent) entered their tax information or used the IRS Data Retrieval Tool (DRT) to transfer tax data from the IRS to the FAFSA®. Beginning with 2024-25, all persons listing tax information on the FAFSA® will be required to use the IRS Direct Data Exchange (DDX) to share tax information or confirm non-filing status. DDX gives ease to the process and reduces questions to be answered. This change also requires the student, spouse, and all parents with tax data reported to get an FSA ID (if you don’t each have one already).
The FAFSA® previously calculated an Estimated Family Contribution (EFC). Now the FAFSA® will produce the Student Aid Index (SAI). This name more accurately describes a number used to determine aid eligibility within programs and compared to other students. Also, this number, unlike the EFC, can be negative with the minimum SAI being -1500.EFC becoming SAI is more than a name update. The calculation of the SAI differs from the EFC calculation of the past and makes the following changes that may change your aid eligibility:
The FAFSA® previously divided the EFC proportionally based on the number of the household in college. The elimination of this “sibling discount” will be the biggest change in aid eligibility for some students. The SAI will not use the number in college as a factor in calculation of eligibility. The determination to no longer consider number in college was made by Congress and can only be changed by Congress.
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 Income Protection Allowance (IPA) covers a family’s basic living expenses and is excluded from SAI formulas. New, larger IPAs lower the amount of student or parent income considered to be available to pay for college. IPAs will increase by 20% for parents, up to about $2400 (35%) for most students, and up to about $6500 (60%) for students who are single parents.
When required, families will now report the value of their farms or businesses. While this inclusion continues to be debated in Congress, it will be required reporting for appropriate families on the 2024-25 FAFSA® and can influence the SAI.
What are the new terms used on the FAFSA?
Any individual required to provide consent and approval for the Federal Tax Information (FTI) along with their signature on the FAFSA form, including the student; the student’s spouse; a biological or adoptive parent; or the parent’s spouse (stepparent).
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).
System used to transfer individuals tax information to determine federal aid eligibility (replaces what used to the IRS data retrieval toll DRT).
A calculation based on the FAFSA that allows us to determine how much need-based financial aid you are eligible for. It provides schools with a picture of your family’s financial strength. Replaced what used to be known as the Expected Family Contribution (EFC).
Summary document provided when after completing the FAFSA application (replaces what used to known as the student aid report (SAR)).
Federal tax information (FTI) is data provided directly from the Internal Revenue Service (IRS) with your (or in some instances, your spouse’s) approval for use on an Income-Driven Repayment (IDR) Plan Request. You can provide and manage your consent in your StudentAid.gov account.
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.
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.
If you have not created an FSA ID do so as soon as possible so that you will be ready to complete the FAFSA once it opens in December 2023.
The FSA ID serves as a digital signature to complete the FAFSA and sign electronically. Parents wishing to sign electronically will also need an FSA ID. If a parent is not eligible to receive an FSA ID, they can print and sign the signature page.
A new process is being created for parents without Social Security Number (SSN) to obtain an FSA ID by the Department of Education. The process has not been finalized yet but we will update this page when it becomes available.
The FSA ID will be used for future years. Be sure to keep track of your information.
It is important for families to complete the 2024-25 FAFSA® as soon as possible once it is available in December 2023.
New students for 2024-25 should continue to prioritize their FGC admission application.
The FAFSA® remains key for all students to get a financial aid award offer from FGC. We want you to have a complete financial award as you make your college selection. The delay of the FAFSA® availability until December does slightly shorten the window for applying for aid, and FGC will work to begin student awarding for new students with FAFSA®s on file as soon as systems are ready.
Returning college students also want to complete the FAFSA® as soon as it is available. While some students will receive more aid through the new SAI calculations, others may receive less. You want to know your aid eligibility sooner than later to make financial plans for continuing your education. Awards for returning students with FAFSA®s will occur before the end of spring term to assist in your financial planning.
NOTE: 2024-25 FAFSA® changes are being implemented by the U.S. Department of Education. Information is subject to change as new information becomes available.
Please contact the Financial Aid office if you have any additional questions. Phone: 386-754-4296Fax: 386-754-4529Email: financial_aid@fgc.edu
