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UHD Financial Aid - Better FAFSA BETTER FUTURE

2024-25 FAFSA Changes

 

Simplifying the Financial Aid Application Process

Big changes are coming to the Free Application for Federal Student Aid (FAFSA) for the 2024-2025 aid year! This application will be for the Fall 2024, Spring 2025 and Summer 2025 terms.

The FAFSA Simplification Act was passed by Congress in 2020 and represents a significant overhaul of the processes and systems used to award federal student aid. This includes the FAFSA form, the process used to determine federal aid eligibility, changes in terminology, and many policies and procedures for schools that participate in federal student aid programs.

This process represents the first major redesign of the FAFSA process in over 40 years.

 

Benefits to Students and Families

Students and families will see a different measure of their ability to pay for college and experience a change in the methodology used to determine aid. The benefits of FAFSA simplification include:

  1. A more streamlined application process with a reduced number of questions
  2. Expanded eligibility for federal student aid
  3. Expanded eligibility for the Federal Pell Grant
  4. Better user experience for the FAFSA form
  5. Enhanced data sharing with the IRS to simplify the applicant’s experience

 

Changes to the FAFSA

The changes to the FAFSA form for the 2024–25 aid year include:

  • 2024-2025 FAFSA availability date
    Normally the FAFSA becomes available October 1st each year, but the 2024-2025 FAFSA will be available by the end of December 2023.  The revised launch date will apply only for the 2024–25 FAFSA form.  Please check back for updates.

  • The term “EFC” (Expected Family Contribution) is changing
    The term Expected Family Contribution (EFC) will be replaced with the Student Aid Index (SAI) – this is a new need analysis formula that will be used when awarding need-based grants and scholarships.

  • IRS DRT is replaced with Direct Data Exchange (DDX)
    All persons listing tax information on the FAFSA will be required to use the IRS Direct Data Exchange (DDX) to share Federal Tax Information (FTI) 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 have an FSA ID (if you don’t have one already)

  • FAFSA Contributors
    A new term which refers to anyone asked to provide information on the FAFSA – a student, spouse, student’s parent(s) and/or stepparents(s) – is a “contributor” to the application.  All FAFSA contributors must have an FSA ID to log into the online form; a new process to get an FSA ID for parents and spouses without a Social Security number will be made available.

  • Unusual Circumstances
    Starting with the 2024-25 Award Year, both first-time and renewal applicants who indicate on their FAFSA form that they have an unusual circumstance will be granted provisional independent status. The Office of Scholarships and Financial Aid may request additional information from you to make a final determination.

Check out this video for more information: What’s Changed for 2024-2025 FAFSA Form? 

 

Preparing for the New FAFSA

  • If you completed a FAFSA form for 2023–24, log into your StudentAid.gov account and be sure your email address is correct.

  • If you did not complete a FAFSA for 2023-2024, create an account at StudentAid.gov —and remember your username and password so you can access and submit the 2024–25 FAFSA form when it is available.  View how to create an FSA ID video for assistance.

 



 

Frequently Asked Questions

FAFSA Timeline

The FAFSA is available now. 

The FAFSA application is now available.  We will continue to send email updates as new information becomes available.

Federal legislation passed in 2020 dictated the largest overhaul of the FAFSA form and filing system since the mid-1990s. The new form and user experience required a total redesign which in turn required a long timeframe for preparation. The date will return to October 1st going forward.

Students and parents are encouraged to create an FSA ID if you have not done so already. You can start this process at studentaid.gov. It can take 1-3 days for an FSA ID to go through the verification process, so we recommend getting it done now.

File your FAFSA as soon as possible.

The White House and U.S. Department of Education officially announced that institutions will not receive FAFSA applicant information until the first half of March

 

FSA ID

Check out this short video.

No. Every student, parent, or spouse that wishes to log in and complete or sign the FAFSA will need to have a verified FSA ID. You will no longer be able to access a FAFSA with student demographic information only. It takes 1-3 days for an FSA ID to go through the verification process. Everyone should anticipate setting up their FSA ID at least one week prior to starting the FAFSA.

Yes. FSA is in the process of enhancing the FSA ID process so that individuals without SSNs will be able to establish an FSA ID to access and sign the FAFSA.

There will be alternative steps for verifying one’s identity within the process. Complete details of those new steps have not yet been released.

FSA will use TransUnion services to ask knowledge-based questions to help with identity verification.

Examples of these questions may include current or former address, a previous phone number, an employer, or a home/auto loan. Answers will be multiple choice (including “none of the above”).

The signature page process has been eliminated with the new form. Those without Social Security numbers will not need an ITIN to set up an FSA ID.

FSA also has a web page with their FSA ID FAQs.

How to Get an FSA ID for Individual Without a Social Security Number

 

Contributors

Contributor is a new term introduced on the 2024-25 FAFSA form. It refers to anyone asked to provide information on a student's FAFSA form:

  • the student
  • the student's spouse
  • a biological or adoptive parent
  • the parent's spouse (stepparent)

A Contributor is NOT a grandparent, foster parents, legal guardian, brother or sister, aunt or uncle, even if they helped provide for or raise the student.

The student's or parent's answers on the FAFSA will determine which Contributors (if any) will be required to provide information.

A Contributor will be invited to complete their portion of the FAFSA form by entering their name, date of birth, Social Security number, and email address.

A Contributor must provide personal and financial information in their own sections of the FAFSA form. Unlike previous versions of the FAFSA, no one other than the Contributor will be able to enter the Contributor's information.

Following are the steps that each Contributor must follow to enter information on the FAFSA:

  1. Contributor receives an email informing them that they've been identified as a contributor.
  2. Contributor creates a StudentAid.gov account if they don't already have one.
  3. Contributor logs in to account using their FSA ID account username and password.
  4. Contributor reviews information about completing their section of the FAFSA form.
  5. Contributor provides the required information on the student's FAFSA form.

Being a contributor does NOT implicate financial responsibility. However, if a required contributor refuses to provide their information, it will result in an incomplete FAFSA form, and the student will become ineligible for federal, state, and institutional aid.

Students that live with a single/divorced/widowed parent and receive most support from that parent, will report only one parent on the FAFSA.

The parent included in the FAFSA as a contributor must be the parent that provides the greater portion of the student's financial support. If that primary parent is remarried, the income of that parent's spouse (stepparent) will also be required.

According to the Future Act, all students and contributors must provide consent to the following:

  • Have their federal tax information transferred directly into the FAFSA® form via direct data exchange with the IRS;
  • Have their federal tax information used to determine the student's eligibility for federal student aid; and
  • Allow the U.S. Department of Education to share its federal tax information with postsecondary institutions and state higher education agencies for use in awarding and administering financial aid.

Important: Even if students or contributors don't have a Social Security number, didn't file taxes, or filed taxes outside of the U.S., they still need to provide consent.

  • If a student or required contributor doesn't provide consent to have their federal tax information transferred into the FAFSA® form, the student will not be eligible for federal student aid, state aid, or institutional aid—even if they manually enter tax information into the FAFSA form.  There is no exception to providing consent.

  • Information about how federal tax information will be used and the consequences of not providing consent will be included on the FAFSA form.

  • Legal parents must provide consent to transfer federal tax information, even if one of the parents didn't file or had no income. If parents fail to provide consent, the student will not be eligible for federal student aid, state aid, or institutional aid.

 

Resources

 

Last updated: October 18, 2023