If you've ever filled out the Free Application for Student Aid (FAFSA) before, you're probably familiar with the stress, confusion and possible tears that often come with it.
Hopefully, future students won't feel your pain.
The Department of Education (ED) is getting ready to release a new, streamlined FAFSA later this year, and a draft of the updated form is available for public comment.
Congress passed the FAFSA Simplification Act in 2020, which aims to reduce the number of questions on the application and make Pell Grants and other federal aid more accessible.
The new application is scheduled to roll out for the 2024-25 school year on December 1 of this year — delaying the typical application and financial aid package cycle, which usually begins with the opening of the FAFSA on October 1.
You can see a PDF version of the new application and submit comments to ED before May 23. Here some of are the major changes.
Elimination of questions and expanded eligibility
Students and families who fill out the FAFSA for the 2023-24 school year will see some of the changes already in effect.
The Selective Service registration — which required male students under 26 to enroll in the draft — was removed as part of the FAFSA Simplification Act and hasn't been on the form since 2021. Students are no longer required to register for Selective Service to receive federal aid.
The FAFSA has already removed questions about drug-related convictions. Students with such charges are now eligible to receive Pell Grants.
Beginning in July of this year, students who are incarcerated in a federal or state prison and enrolled in approved prison education programs are eligible to receive Pell Grants. Students who have been subject to an involuntary civil commitment for a sexual offense will also gain Pell Grant eligibility.
Easier information input
Gone are the days of digging up your tax returns to fill out the FAFSA. Part of the FAFSA Simplification Act mandated that the form allow users to pull their federal tax information directly from the Internal Revenue Service (IRS).
There are some new questions that have already been added to the current FAFSA, asking students for their sex, race and ethnicity for research purposes, not to be considered for aid decisions.
Expected Family Contribution becomes Student Aid Index
Previously, one of the primary purposes of the FAFSA was to determine your Expected Family Contribution (EFC), the estimated amount you and your family could pay per year. The number gave your school and federal aid administrators an idea of how much financial support to offer.
The student aid index (SAI) will serve the same purpose, but use a different formula. Unlike the EFC, the SAI will not not include the number of family members in college as part of the calculation. Federal Student Aid (FSA) published a draft of the calculations to be used to determine SAI.
Your SAI could be negative, down to a minimum of -$1,500. This allows colleges and aid administrators to determine the neediest students, rather than a cluster of students with a $0 EFC, according to the nonprofit National Association of Financial Aid Administrators.
Students with an SAI between $0 and -$1,500 will qualify for the maximum Pell Grant, which is $7,395 for the 2023-24 school year.
Aid administrators will subtract the student's SAI from their determined cost of attendance in order to assess aid eligibility and amounts, according to FSA.
Changes to Pell Grant calculation
Along with changing who is eligible to receive Pell Grants, the new FAFSA changes how Pell Grant amounts are calculated. Aid administrators currently use a table that considers your EFC and cost of attendance to determine the size of your Pell Grant.
As mentioned, students with an SAI of $0 or less will be eligible for the maximum Pell Grant amount, which is $7,395 for the 2023-24 school year.
If your SAI is smaller than the maximum Pell Grant amount, you may qualify for a smaller grant, according to an FSA fact sheet.
If your SAI is greater than the maximum Pell Grant amount, you may still qualify for the minimum amount depending on your family size, adjusted gross income and poverty guidelines. The smallest Pell Grant amount was $750 for full-time students for the 2023-24 school year.
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