What is FAFSA Simplification?

The Free Application for Federal Student Aid, or FAFSA, is what schools use to determine students' eligibility for federal aid. The FAFSA Simplification Act was passed as a part of the 2021 Consolidated Appropriations Act. FAFSA simplification is a process that will bring several important changes to the FAFSA application. FAFSA simplification will take effect for the 2024-2025 FAFSA application.

Read more about the FAFSA Simplification Act here.

What is changing on the 2024-2025 FAFSA?

Here are a few differences students will notice on the 2024-2025 FAFSA.
  • The FAFSA will have fewer questions and be more streamlined for students' user experience. 
  • The parent who signs students' completed FAFSA will now be known as a "contributor" and will need to be given access to sign their student's FAFSA with their own FSA ID.
  • The Expected Family Contribution (EFC) will be replaced with something called the Student Aid Index (SAI).
  • There will be revisions to "family size" definitions in FAFSA formulas to better align with what is reported on student and parent tax returns.
  • There will be increased access to federal Pell Grants.

You can also watch a short clip on what is changing in the FAFSA Form. 

What are some important things for me to know?

  • The FAFSA application usually opens on October 1st. However, due to updates with FAFSA simplification, the 2024-2025 FAFSA will not be available until December. The Department of Education has not yet determined a date, but we will let students know the release date as soon as we can.
  • The 2024-2025 FAFSA application will be based on the 2022 tax year. Consider gathering your 2022 tax documents so you are ready once the application opens!
  • Curious on what aid you might be eligible for? Use the Department of Education's Federal Student Aid Estimator to consider your specific circumstances. 
  • You will also see some new terminology on the 2024-2025 FAFSA.
    • Student Aid Index (SAI): replaces the Expected Family Contribution (EFC) as a formal evaluation of a student's approximate financial resources to contribute toward their postsecondary education for a specific award year
    • Direct Data Exchange (DDX): system used to transfer individuals' tax information to determine federal aid eligibility (replaces the IRS data retrieval tool DRT). 
    • 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)