For years, the U.S. Department of Education has taken strides to simplify the Free Application for Federal Student Aid, more
commonly referred to as the FAFSA. In the next few years, however, it will undergo some of the most impactful changes yet.
2023 – 2024 FAFSA Simplification Measures
The Consolidated Appropriations Act, which contained the FAFSA Simplification Act, was passed by Congress in December 2020. This Act called for streamlining and simplification measures of the FAFSA that will extend through the 2024 – 2025 award year.
FAFSA simplification has already started. Students are seeing a modified form and more leniency in how aid is distributed in the current filing year for the 2023-2024 FAFSA.
Cost of Attendance (COA)
For the 2023 – 24 award year, colleges must include more details about the cost of attendance for their institution. In the past, colleges could be very general, but the new changes call for more clarification.
According to the
Department of Education, COA should be broken down as such:
• “Books, course materials, supplies, and equipment” will receive its own category and is no longer permitted to be lumped in with tuition and fees.
• “Transportation” expenses will be defined as transportation between home and campus, residences, and a student’s workplace.
• “Room and board” will now be referred to as “Food and Housing” and will be grouped with “Living Expenses.”
• “Living Expenses” now breaks down food and housing into specific scenarios, such as living on campus vs off campus and having a meal plan vs grocery shopping and cooking.
If the college you’re interested in does not break down cost like the above, call the Admissions or Financial Aid offices. They can provide a price breakdown for you.
Independent Student on FAFSA
Students living in special circumstances will find that it’s easier to
identify as an independent student when they file the FAFSA. Simplified questions will enable them to declare their independent status. This revision is only available to students who are considered:
• Homeless
• Orphans
• Former foster youth
• Other unusual circumstances
During the current award year (2023-2024 FAFSA), students will still have to request a determination of independence before their FAFSA can be processed. This can be done through the school to which they are applying.
In the future, their answers will be carried over to future forms. Independent students can find which
forms of proof will be required to gain their independent status on the FAFSA here.
Pell Grant Eligibility
More
students will be able to qualify for the Pell Grant under FAFSA simplification rules, extending to 15% more students. Incarcerated students will regain the ability to qualify for the Pell Grant.
Students who have experienced school closures as well as falsified or fraudulent certifications will have access to the Pell Grant, despite maxing out lifetime eligibility at former institutions.
Student Loan Limits
In the past, federal loan borrowers could not receive subsidized loans of up to 150% of the program length during their lifetime. The requirements have caused first-time borrowers who have met or exceeded the 150% limit to lose the interest subsidy on their
Direct Subsidized Loans. This rule has been repealed.
Removal and Addition of Questions
Finally, enrollment in Selective Service Registration has been removed as well as questions about prior drug convictions. Questions about the applicant’s sex, race, and ethnicity are voluntary in the 2023 – 24 award year but will be will be mandatory during the 2024 – 25 award year.
2024 – 2025 Award Year FAFSA Simplification
While the above changes are in effect this go into effect next year, there are more FAFSA simplification measures that will go into effect next year – during the 2024 – 25 award year:
Expected Family Contribution (EFC) to Become Student Aid Index (SAI)
Next year’s FAFSA will replace the EFC with the SAI – Student Aid Index. The EFC has long been the figure that has identified how much a student – or family – can afford to pay for school once they have filed the FAFSA.
The acronym isn’t the only thing getting a facelift. The SAI will be determined by a different methodology. According to
studentaid.gov, “the new need analysis formula removes the number of family members in college from the calculation, allows a minimum SAI of -$1,500, and implements separate eligibility determination criteria for Federal Pell Grants.”
Extending Pell Grant Eligibility
Under the FAFSA Simplification Act, more students will qualify for the Pell Grant during the 2024 – 25 award year. Pell Grant eligibility will now be linked to family size and the federal poverty level.
Further Help for Independent Students
Independent students on the FAFSA will be able to submit their form under a provisional independent status. This will allow them to receive an SAI with an estimate of their
federal financial aid eligibility, with final determination made by the school.
Streamlining the FAFSA Form
Beginning in the 2024 – 25 award year, the FAFSA will be available in the 11 most common languages in the United States. Additionally, the from will use data directly from the IRS to determine Pell Grant eligibility and the SAI.
Complete the FAFSA to Qualify for Financial Aid
With the above implementations, it will be easier than ever to complete the FAFSA. Any student that wishes to qualify for financial aid must complete this form.
Additionally, any students that hopes to remain eligible for aid must renew the FAFSA each year. Failure to do so will result in a loss of financial aid from federal and state governments as well as the college.
If you require help filing out the FAFSA, talk to your school counselor, a financial aid administrator, or
contact the Federal Student Aid Information Center (FSAIC).
