The FAFSA Simplification Act has recently been passed by Congress to streamline the
financial aid process for students and families. Key changes
that can impact the application process and resulting financial aid offers for students are outlined
Key changes include, but are not limited to:
- The STUDENT AID INDEX [SAI] replaced the EXPECTED FAMILY CONTRIBUTION [EFC].
- You will not be allowed to manually enter IRS tax information to the FAFSA. The 2024-2025 FAFSA and beyond will use the FUTURE ACT DIRECT DATA EXCHANGE [FADDX], instead of the DATA RETRIEVAL TOOL [DRT] to receive FEDERAL TAX INFORMATION [FTI] from the Internal Revenue Service [IRS]. Each CONTRIBUTOR [Student and Parent[s]] must give consent for this information to be retrieved by FAFSA.
- For students whose parents are separated or divorced, the guidance on which parent income to report has changed to: the parent who provides the most financial support to the student, rather than the parent who lives at the student’s primary residence.
- The net worth of a business is no longer limited to those with more than 100 full-time employees. Applicants will be asked to report the net worth of all businesses, regardless of the business size.
- Parents without a Social Security Number [SSN] will be able to apply for a FSA ID. This will increase FAFSA processing time as parents will be able to submit the form online, rather than having to print, sign and mail their application.
***For additional FAFSA SIMPLIFICATION details, please visit www.FederalStudentAid.gov***