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The Department of Education is rolling out significant changes to the 2024-25 FAFSA marking its first major redesign in over 40 years.
The FAFSA Simplification Act was passed by Congress in 2020 and overhauls the process of awarding federal student aid. It streamlines the Free Application for Federal Student Aid (FAFSA) form, which is the need analysis that determines federal aid eligibility. It also changes some terminology and revises policies and procedures for participating schools.
The benefits of the FAFSA Simplification Act include a more streamlined application process and a better user experience, expanded eligibility for federal student aid, and reduced barriers for certain student populations
In an effort to simplify the financial aid process you will see a new Free application for federal student aid (FAFSA) for 2024-25. We are learning more about the changes every day and will do our best to bring you updates as we have them. To start, you can read about why the changes are being made, and what changes are being made on the Federal Student Aid Website to learn about FAFSA Simplification.
HOW THE FAFSA SIMPLIFICATION ACT IMPACTS YOU?
The U.S. Department of Education recently announced they are expecting delays in processing the FAFSA, getting FAFSA information to schools, correcting calculation errors, and opening the FAFSA correction process to allow applicants and schools to correct or update their FAFSA information. These delays mean we will not begin sending financial aid offer notifications until mid-May.
2024-25 Year Pell Grant Eligibility:
Due to the FAFSA Simplification Act, there will be several changes to Pell Grant calculations starting in the 2024-25 academic year. FAFSA completion is still required, however the Estimated Family Contribution (EFC) is changing to the Student Aid Index (SAI), which will be used to determine a scheduled Pell Grant award. A student’s enrollment intensity will be taken into consideration when calculating a semester’s Pell Grant amount. This is based on the percentage of classes a student will take compared to a full-time course load.
Federal Pell Grant can range from $740 to $7,395 per year based on financial need. The amount you receive each semester is based on your SAI and the number of credit hours enrolled.
* This table provides an example of a potential Pell award breakdown. The amount listed is not the guaranteed amount a student will receive. Please contact the Financial Aid Office for specific details about your financial situation.
WHAT’S NEW WITH THE FAFSA?
What new terms should I be aware of that will be used throughout the FAFSA?
Contributor
- any individual required to provide consent and approval for federal tax information (FTI) along with their signature on the FAFSA® form, including the student; the student’s spouse; a biological or adoptive parent; or the parent’s spouse (stepparent).
FUTURE Act Direct Data Exchange (FA-DDX)
- System used to transfer individuals tax information to determine federal aid eligibility (replaces what used to be the IRS data retrieval tool DRT).
Student Aid Index (SAI)
- A calculation based on the Free Application for Federal Student Aid (FAFSA) that allows us to determine how much need-based financial aid you are eligible for. It provides schools with a picture of your family’s financial strength. Replaced what used to be known as Expected Family Contribution (EFC).
FAFSA Submission Summary –
- Output document providing a summary of data input on the FAFSA form received after completing FAFSA application (replaces what used to be known as the student aid report (SAR).
How do I create and access my studentaid.gov account?
Who are the contributors that must provide financial information?
- A contributor — a new term being introduced on the 2024-25 FAFSA — refers to anyone who is required to provide information on the FAFSA. A student or parent’s answers on the FAFSA determine which contributors will need to provide information.
- Contributors receive an email informing them that they’ve been identified as such and will need to log in using their own FSA ID to provide the required information on the student’s FAFSA.
- A FAFSA contributor is not necessarily financially responsible for the student’s education but must provide information to complete the application or the student will not be eligible for federal student aid.
- For more clarification, watch this video
Will the number of household members attending college still be used to calculate the SAI?
- No
Who is the parent responsible for submitting the FAFSA in cases of divorce or separation?
- On the 2024-25 FAFSA, financial information will be required from the parent(s) who provide the most financial support to the student (even if the student does not live with them).
Will applicants be required to use the FUTURE Act Direct Data Exchange?
- Yes, for 2024-25, all contributors on the FAFSA must provide consent for the Department of Education to receive tax information or confirmation of non-filing status directly from the IRS.
What is the Student Aid Index (SAI) and why does it replace the Expected Family Contribution (EFC)?
- A notable terminology update for the 2024-25 FAFSA is the replacement of the term Expected Family Contribution (EFC) with the Student Aid Index (SAI). The SAI more accurately describes the number used to determine aid eligibility. Unlike the EFC, the SAI may be a negative number as low as -1500.
Do I report my family farm and/or small business as assets?
- Families must now report the value of their small business or family farm. If the family farm includes the principal place of residence, applicants should determine the total net value of all farm assets and subtract the net value of the principal residence to determine the final value of their farm assets.
As a returning student how can I get an estimate of what my aid might be for the 2024-25 year before my aid offer is ready?
- We have programmed the net price calculator to give an estimate based on the new formula using SAI for 2024-25. Keep in mind this is an estimate, it is as accurate as the information you put in. The loan amounts you are given will be based on a first-year student, so they may vary for our returning students using the calculator.
I received an email from the Department of Education that my FAFSA has been processed and sent to the school, when will I get an aid offer?
- Due to ongoing issues with some information on the FAFSA and delays in system updates, we are not able to confirm receipt of your FAFSA at Stark State at this time. We are hoping to confirm receipt and process FAFSAs that have complete and accurate data in mid-May and offer aid at that time. We want to ensure that the information we are receiving is correct before confirming receipt so that we can be sure the aid offer is accurate.
