To get assistance in paying for higher education and earn grants, scholarships, and student loans, millions of students fill out the Free Application for Student Aid (FAFSA). Because of the FAFSA Simplification Act, the FAFSA was redesigned to improve the process and expand financial assistance to families across the country. 

This includes six changes students need to be aware of when they fill out the application: 

1. New aid calculation method

The biggest change with the new guidelines is that Expected Family Contribution (EFC) from past years is replaced by the Student Aid Index (SAI) to calculate a student’s eligibility. Both numbers still represent what families can pay for their student’s education, as they consider income and assets of the household. This is the new equation:

  Cost of Attendance (COA)

- Student Aid Index (SAI) 

- Other Financial Assistance (OFA)

___________________________

   Financial Need

Unlike the EFC, the SAI allows you to have a minimum contribution of -$1,500. Dependent students with divorced parents need to report the income of the parent who provides more financial support, and families no longer get a break for having multiple children in college. 

The new FAFSA also has less than 50 questions now, which makes it a lot easier to complete. However, this is because you’re required to transfer your information from the IRS. 

2. You may qualify for the maximum Pell Grant

The Pell Grant is awarded to students with “exceptional” financial need, according to studentaid.gov. While eligibility is still dependent on household income and the size of your family compared to poverty guidelines, students below the poverty threshold may qualify for the Maximum Pell Grant. 

If you’re a dependent student with a single parent and have an adjusted gross income (AGI) greater than zero and less than or equal to 225%, you’re eligible for a Maximum Pell Grant. Dependent students with parents who are NOT single and have an AGI of greater than zero and less than or equal to 175% of the poverty guidelines of their state of residence are also eligible. As an independent student, you’re eligible for a Maximum Pell Grant if you’re a single parent and have an AGI greater than zero and less than or equal to 225%. If you’re not a single parent, you must have an AGI of greater than zero and less than or equal to 175% of the poverty guidelines of their state of residence are also eligible.

You’re also eligible if you (if you’re an independent) or your parents (if you’re a dependent) are not required to file a tax return. 

Family size still applies to Pell Grant eligibility. These grants are also now open to incarcerated students and those who were defrauded by a school.

3. The application opens later this year

The FAFSA application usually opens at the beginning of October for the next academic year. Due to the upcoming changes, the FAFSA application for the 2024-2025 school year won’t open until December 31st, 2023.

The Department of Education intends to move the FAFSA opening date to Oct. 1, 2024 for the 2025-2026 school year, though, so this change is temporary. 

4. Everyone completing the FAFSA application needs their own FSA ID

In the past, parents, step-parents, or spouses didn’t need a FSA ID and password to fill out part of the FAFSA for their student. Now, it’s required for everyone to have their own FSA ID and password for security. Contributors set up their own FSA ID by providing their birthday, Social Security number, and full name. 

5. Tax data transfers require consent

You are now required to digitally transfer the information for the FAFSA from the IRS, but the transfer requires consent from each application contributor. Whether you ask a parent or your spouse to fill out the forms, they have to agree to provide their tax information. 

It’s important to note that if they don’t agree to their IRS information’s transfer, you can still apply for aid, but you may not qualify without consent. 

6. You can list up to 20 schools on the digital version of the FAFSA application

If you’re not committed to a school just yet, the Department of Education now allows students to add up to 20 different schools to your list. It’s important to note that the PDF version of the FAFSA only allows you to list up to 10 schools, though. 

Conclusion

To prepare for when the new FAFSA application opens, be sure to set up FSA IDs for all contributors and figure out your dependency status. If you have additional questions, contact the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243 or via their website over live chat or email. Here are their hours of operation:

Monday: 8 a.m.–9 p.m. ET

Tuesday–Wednesday: 8 a.m.–8 p.m. ET

Thursday–Friday: 8 a.m.–6 p.m. ET

Saturday–Sunday, Federal Holidays, Nov. 24 and Dec. 22.: Closed

If you’re in need of financial aid for the current school year, the FAFSA is still open for the 2023-2024 academic year until June 24, 2024. However, remember that the changes listed above don’t apply for the current school year.