FAFSA Simplification Act ‚ÄĒ Important updates you need to know
Big changes are coming to the Free Application for Federal Student Aid (FAFSA) for the 2024-25 aid year.Őż
While the new application will be streamlined and easier to complete, it will also bring significant changes to the calculation of federal Pell Grant awards and include changes to some financial aid terminology.
As more news about the updated FAFSA becomes available, The Office of Student Financial Aid (OSFA) will update this page so that ∑¨«— ”∆Ķ students, families, and our campus community remain ready for the new process.
Why is the FAFSA Changing?
What is Changing with the FAFSA?
What is NOT Changing with the FAFSA?
The best way to access aid
Students are required to complete the FAFSA to be considered for federal aid, and it will also continue to be used when determiningŐżinstitutional and state aid.
Students still need to complete the FAFSA on an annual basis.
Degree-seeking students will be eligible for federal‚ÄĮstudent loansŐżif theyŐżcomplete the FAFSA and are not in default onŐżprevious student loans.
Early completion is still valuable
Since some aid is awarded on a first-come, first-serve basis,Őżearly FAFSA applications receiveŐżpriority consideration for limited funds.
Questions introduced in 2023-24 about the applicant's sex, race, and ethnicity haveŐżno effect on federal student aid eligibility. These questions are only‚ÄĮused for statistical purposes.Őż
Questions about dependency status‚ÄĮthat determine whether your parents complete the FAFSA with you remain the same.Őż
The FAFSA asks for tax information from the prior-prior year.
Digging Deeper into the FAFSA Changes
The new FAFSA reduces the maximum number of questions from 108 to 46. Since the FAFSA on the Web is dynamic, some students won't even be presented with every question. The FAFSA dropped some questions in recent years, and additional questions will no longer be asked due to changes in how the application gathers tax and income information.‚ÄĮŐż
Tax and Income Data:
Previously, students, their spouse (when married), and parent(s) (when students are‚ÄĮdependent) entered their tax information directly or used the IRS Data Retrieval Tool (DRT). Beginning with 2024-25, all contributors listing tax information on the FAFSA must use the DDX to share their information or confirm non-filing status. DDX eases the process and reduces the number of questions on the application. This change also requires the student, spouse, and all parents with tax data reported to get an‚ÄĮ‚ÄĮif they do not already have one.
The Difference Between SAI and EFC:
The SAIŐżmore accurately describes the number that determines aid eligibility within programs and in comparison to other students. Unlike the EFC, th SAI can be a negative integer. For example, the minimum SAI is -1500, rather than zero.
No benefit for having siblings in college:
The FAFSA previously divided the‚ÄĮEFC‚ÄĮproportionally based on the number of individuals in a the household in college. Elimination of this "sibling discount" will cause the largest change in aid eligibility for some students. The SAI will not consider the number in college as a when calculating eligibility. As a result, students with siblings in college may see a change in their aid eligibility and in the aid received by their sibling(s) at Mason or elsewhere. This change was made by Congress and can only be changed by Congress.Őż
Automatic Pell Grants based on income and household size:
Students of families making less than 175% and single parents making less than 225% of the‚ÄĮ‚ÄĮwill receive a maximum‚ÄĮFederal Pell Grant‚ÄĮaward. Minimum Pell Grants will be guaranteed to students from households below 275%, 325%, 350%, or 400% of the poverty level, depending on household structure. The SAI will be used to determined Pell awards between the maximum and minimum amounts.
Larger Income Protection Allowances (IPA):
The IPA covers a family's basic living expenses and is excluded from SAI calculations. New, larger IPAs lower the amount of student or parent income considered to be available to pay for college. IPAs will increase by 20% for parents, up to about $2400 (35%) for most students, and up to approximately $6500 (60%) for students who are single parents.Őż
Inclusion of family farms or small businesses:
When required, families will now report the value of their farms or businesses. As this inclusion continues to be debated in Congress, it will be required reporting for appropriate families on the 2024-25 FAFSA and will be part of calculating the SAI.Őż