Unlocking Financial Aid Opportunities: What's New in the 2024-25 FAFSA Form
The new, simplified 2024-25 FAFSA form was made available to the public on December 31, 2023. While the new FAFSA was modified to be more streamlined, making it easier for students and families to complete, the launch of the new FAFSA was delayed with many hiccups accompanying its launch. However, the dust seems to have finally settled a bit, allowing us to see what the new FAFSA offers, the significant changes that have been made, and how students can prepare and submit their 2024-25 FAFSA.
FAFSA In a Nutshell
The FAFSA is a form that students and their families fill out to apply for college financial aid from the U.S. government. It’s the initial step in the financial aid process and is used by states, colleges, universities, and private scholarship programs to determine aid eligibility.
What Does the FAFSA Offer Students and Families?
Students and families can reap some serious financial benefits by submitting a FAFSA, such as:
Financial Aid Access: Annually, over 13 million students who submit the FAFSA receive more than $120 billion in grants, work-study, and low-interest loans from the U.S. Department of Education.
Help with College Costs: The FAFSA is a key step for students and their families in securing funds to cover college expenses.
Multiple Aid Sources: The FAFSA allows students to apply for federal student aid as well as aid from states and schools.
Almost all students who apply qualify for some form of federal financial aid. It’s easy to qualify for aid based on the FAFSA, making it an essential tool for students and families seeking educational financial assistance.
What’s Changed on the New 2024-25 FAFSA?
The old FAFSA form was a tad complicated, so the U.S. Department of Education is hoping that this new, streamlined version will be much easier to fill out. With a simpler form in mind, the 2024-25 FAFSA has had several important updates:
Allowing Contributors: A new term, “Contributor”, has been added to the FAFSA form. It denotes anyone—parent, guardian, spouse, etc.— who gives their details, agrees, and approves the automatic transfer of their federal tax data from the IRS to the FAFSA form.
Fewer Questions: The FAFSA form now has fewer questions, down from 108 to 36, and these questions are more relevant and in line with federal income tax returns.
New Aid Calculation Method: The expected family contribution (EFC) metric has been replaced by the new Student Aid Index (SAI) for determining aid eligibility.
The details provided on the FAFSA form determine a student's SAI. This index number is used by college financial aid offices to compute need-based financial aid.
Expanded Aid Eligibility: Aid eligibility has been increased for single parents.
Pell Grants Available to More Students: The Pell Grant, which is need-based, provides students with free college aid that doesn’t need to be repaid. The new FAFSA formula will make an additional 610,000 low-income students eligible for Pell Grants, according to the U.S. Education Department. Furthermore, 1.5 million students will be newly eligible for the maximum Pell award of $7,395 per year.
Here are some important changes to how the new FAFSA calculates Pell Grants:
The maximum annual grants will be determined based on family size, adjusted gross income (AGI), and poverty guidelines.
Students who don’t qualify for the maximum Pell Grant could still receive funds if their Student Aid Index (SAI) is less than the Pell Grant maximum.
If a student’s SAI is greater than the maximum Pell Grant award, they could receive a minimum grant award if they qualify based on family size, adjusted gross income (AGI), and poverty guidelines.
These updates to the FAFSA should make the process easier and broaden financial aid for families with low income.
How to Prepare and Submit the 2024-25 FAFSA
Preparing for the new FAFSA is simple. Students need to follow these steps to help make filling out and submitting their FAFSA form a breeze:
1. Gather Required Information: Collect personal information for both the contributor(s) and the student. This includes:
Social Security numbers
Alien Registration numbers (if applicable)
Driver’s license numbers (if applicable)
2. Create an FSA/FAFSA ID: Students will need this ID to access and sign their FAFSA form.
3. Fill Out the FAFSA Form: Enter all contributor and student information in the FAFSA form. All required fields must be filled out accurately.
4. Review, Sign, and Submit the FAFSA: Once the FAFSA has been filled out, all contributing parties must review it for any errors. Then, they can sign and submit it.
5. Wait for Student Aide Results (SAR): After all contributors have submitted their information, students will have to wait for their results. They’ll receive a summary of their FAFSA submission via:
Online: If their FAFSA was completed online, students will be able to check the status of their Student Aid Report (SAR) online between 3 days to 3 weeks after successfully submitting their FAFSA.
Email: If the student provided their email address on the FAFSA, their Student Aid Report (SAR) will be emailed to them from the Department of Education as soon as their SAR is available, typically between 3 days and 3 weeks after they complete their FAFSA.
Mail: If the student included their postal address on their FAFSA, they will receive their Student Aid Report (SAR) in the mail between 7 to 10 days after their FAFSA form has been approved. Students and families need to consider USPS delays if receiving their SAR in the mail.
Advise your clients to contact the Federal Student Aid Information Center for any questions or concerns regarding your Student Aid Report (SAR).
FAFSA FAQs
Q: Is There a FAFSA Deadline?
A: Actually, there are three main FAFSA deadlines that students and families should be aware of:
College Deadline: Every college sets its own FAFSA deadline, usually quite early, often before the start of the academic year. If applying to multiple colleges, it’s crucial to check each school’s FAFSA deadline.
State Deadline: The second deadline is set by the student’s home state. Some states have strict deadlines, while others suggest dates to ensure students are considered for college funds on a priority basis. Since many states have limited funds, their FAFSA deadlines can be quite early.
Federal Deadline: The final deadline is set by the U.S. Department of Education. The FAFSA form for a specific academic year is no longer available after June 30 of that academic year. For instance, the FAFSA form for the 2023-24 school year will be unavailable after June 30, 2024.
Keep in mind, due to the early deadlines set by states and colleges, it’s not advisable to wait. It’s always best to submit your FAFSA at the earliest opportunity.
Q: When should students fill out FAFSA for fall 2024 2025?
A: Students looking to enroll in college in the fall of 2024 and spring of 2025 should fill out the FAFSA for the 2024-25 academic year.
Usually, this is done during the high school senior year. But if students plan to take summer classes or are already in college, those students should complete the form sooner. Students must consult their specific school’s financial aid office to make sure they meet all the deadlines. It’s recommended to complete the FAFSA as soon as possible because some aid is distributed on a first-come, first-served basis.
Q: Who qualifies for FAFSA aid?
A: Most students qualify for FAFSA aid if they meet these general criteria:
The student is a U.S. citizen, a qualifying noncitizen, or a permanent resident.
The student has a valid Social Security number (exceptions are made for students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau).
The student earned a high school diploma or its equivalent, like a General Educational Development (GED) certificate, or completed an approved homeschooling program.
The student is enrolled in an eligible degree or certificate program at least half-time.
Q: Is there an income limit for the FAFSA?
A: No. There’s no income limit for the FAFSA, and the U.S. Department of Education doesn’t set an income cap for federal financial aid. Therefore, students can apply for it—and potentially receive substantial financial aid—regardless of their family’s income.
The updated 2024-25 FAFSA form is now a much more accessible tool for students and families seeking financial aid for higher education. Advise your college-bound students and families to get started on the FAFSA and take advantage of available financial assistance to help ease the burden of higher education costs. Remember, it’s recommended to complete the FAFSA as soon as possible because some aid is distributed on a first-come, first-served basis.
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