FAFSA Update: Forms Expected to Roll Out on December 31
FAFSA or ” Free Application for Federal Student Aid” will open its forms on December 31.
This time, the applicants might encounter significant changes in the form.
Previously, the FAFSA forms used to be open for applicants on 1st October. But this year, the date is pushed a few months ahead.
Why The Delay?
The Consolidated Appropriations Act of 2021 included the FAFSA Simplification Act, which was passed into law to simplify the procedure for students to apply for federal student aid. These adjustments will take effect with the FAFSA form for 2024–2025 and later.
Implementing all these changes, especially for the colleges to completely understand the new consideration process, and rolling out the new application forms takes time. This is why, the FAFSA opening date is pushed by the end of this year.
Keep in mind that significant changes are also made to the formula used to determine a student’s eligibility for federal Pell Grants by the FAFSA Simplification Act.
Students who want to be considered for federal financial aid must submit the FAFSA. States and colleges use this form to evaluate applicants for grants and scholarships. To be eligible for aid, students must reapply every year.
Here are the major changes that have been made to FAFSA-
Number of Questions Reduced to 40
FAFSA used to confusing for students and families. The number of questions used to be staggering 100. Now as per new guidelines, the number of questions has been reduced to 40. In some of the cases, questions can be skipped as well. According to the US Department of Education, the form can be completed in less than 10 minutes.
Language Support
English and Spanish, were the two languages in which the FAFSA used to be available. Now, the form will be available in 11 languages and the students can list up to 20 colleges in the new form. Previously, this limit was set up to only 10.
Your IRS Data Will be Linked
The IRS Direct Data Exchange, or DDX, took the place of the IRS Data Retrieval Tool, which automatically uploads tax data to the web application.
The IRS provides the Education Department with direct access to federal tax data as part of this process to determine a student’s SAI. It is mandatory for every FAFSA contributor to consent to DDX.
FSA ID is Mandatory
Each contributor, who is defined as any individual who needs to fill out a student’s form, needs to have a valid FSA ID. Families should create their FSA IDs ahead of time, as approval can take one to three days.
Parents will need to complete extra steps to authenticate their identity, but they can now create an FSA ID without a Social Security number.
Need Analysis Formula Changed
The Student Aid Index will replace the Expected Family Contribution as the formula used to determine eligibility for financial aid starting with the 2024–2025 award year. The new need analysis formula will distinguish eligibility requirements for Pell Grants, a federal award based on financial need, and eliminate the number of family members enrolled in college. It will also take into account family farms and small businesses.
Furthermore, the parent who supported the dependent filer financially the most must disclose their financial information if the filers are dependents of divorced or separated parents. In the past, the student spent most of the previous year living with one of the parents.
Students who want to be considered for federal financial aid must submit the FAFSA. States and colleges use this form to evaluate applicants for grants and scholarships. To be eligible for aid, students must reapply every year.
