Big changes are coming to the FAFSA next year! In this blog, TxCAN highlights some of the FAFSA changes for the 2024-2025 cycle and how practitioners can begin to prepare.

Over the last few months, you may have heard rumblings about FAFSA changes on the horizon for next year’s financial aid season. On March 21st,  Federal Student Aid released the Better FAFSA Implementation Roadmap, which has provided some clarity for the release of the FAFSA application, demos, and resources. In this blog, TxCAN will be breaking down some of the changes practitioners need to be aware of before the start of the 2024-25 FAFSA Cycle and how they can begin to plan for some of these changes.

 

Things to know at the start of the 2023-2024 school year:  

1.  The 2024-2025 FAFSA form will be released in December 2023.   

Due to changes with FAFSA Simplification that need to be completed before launching, Federal Student Aid announced on March 21st that the 2024-25 FAFSA form would be released in December 2023. A firm release date will be announced long before December and shared as soon as the exact date is available.

 

2. Everyone will need an FSA ID, including parents without a social security number. 

In the past, students and parents were able to access the FAFSA form with their name and social security number and then would need to have an FSA ID or a signature page to complete the form. However, starting with the 2024-25 FAFSA, students and parents will not be able to access the FAFSA form without an FSA ID set up prior to starting the form. Please note that it will take 1 to 3 days for an FSA ID to go through the verification process. Therefore, practitioners should anticipate assisting students and parents through FSA ID creation this fall to avoid further delays once FAFSA opens in December 2023.

Additionally,  parents that are not U.S. citizens or residents will also need to create an FSA ID The process for obtaining an FSA ID for individuals without a Social Security number will be released by August 2023 and automated to the greatest extent possible. FSA will use TransUnion services to ask knowledge-based questions to help with identity verification.

3. A Role-Based Form – students and parents will only see their questions. 

Currently, when a student or parent logs in to the FAFSA, they have access to the full form for both the student and parent sections. That will no longer be the case next year. Starting with the 2024-2025 FAFSA, each person on the FAFSA will only be able to see questions related to their role. When a student logs in, they will only be able to see questions that should be answered by the student, and the parent or spouse will need to log in to see the questions related to their role. The form will not be able to be submitted until all the appropriate people have completed the questions for their roles.

So how will this work? When a student is completing the FAFSA, the form will ask who else will contribute information to the form, such as a parent or spouse, and request their information and email address. The parent or spouse will then be sent a communication indicating that there is a FAFSA that needs their attention. It is critical that the student enters the contributor’s information as it appears in the contributor‘s FSA ID account so that it will be an automatic match. The contributor will receive an email communication to log-in and access their portion to complete the FAFSA form.

It’s recommended that once students begin their FAFSA forms in December that parents are present or available to provide students with the information needed to link them to their FAFSA form.

How to Prepare:  

• With the FAFSA two-month opening delay, practitioners can still take advantage of that time to work on the creation of FSA IDs. This will be beneficial in kickstarting the process for everyone that will be completing the FAFSA: students, and ALL parents. Please note that FSA ID verification takes 1-3 days, therefore we highly recommend hosting FSA ID drives prior to your FAFSA drives this winter.
• It’s strongly suggested that during FSA ID drives to account for two computers/laptops per family (student and parent) . Additionally, you may want to have certain computers/laptops available for email creation for students and families who don’t have an email. Email addresses are needed in order to create an FSA ID.

• Begin editing presentations, checklists, timelines, and any documentation that states the October 1st opening date to reflect the new December 2023 release date.
• Edit your financial aid events calendar and make sure to take the winter holiday into consideration. Also, consider focusing on the CSS profile or scholarships in the fall.
• Consider collaborating with community organizations and local IHEs throughout the summer to assist in the FSA ID process ahead of the new school year.

Things to know when filling out the FAFSA Application this coming December 

1. Students will be able to list more colleges on the FAFSA application 

Students will be able to list up to 20 colleges on the 2024-25 FAFSA application. This will eliminate the need to go back and add more colleges.

2.Students AND Contributors MUST CONSENT to have their tax information tranferred, even if they did not file 2022 taxes 

Please be prepared to ensure that students and parents grant consent on the FAFSA form. If consent is not granted, the FAFSA will be considered INCOMPLETE and the student will be ineligible for federal financial aid.

3. The Direct Data Exchange (DDX) will be replacing the Data Retrieval Tool.  

The DDX will reduce the number of financial questions that most families will see on the FAFSA. Students and contributors will not see what tax information was transferred over. There will be few exceptions that will allow manual entry (such as non-US Tax filers). To ensure you have all the information needed, we suggest you still ask that all students and parents bring a copy of their tax return just in case you encounter a special circumstance.

4.The Student Aid Index (SAI) will be replacing the Expected Family Contribution (EFC) 

The EFC terminology is being replaced by SAI. The Student Aid Index better reflects the output from the FAFSA as an index, not as a reflection of what a family can or will pay.

Family size (not household size anymore) will be based on the number of people claimed as exemptions on tax forms filed for the people reported on the FAFSA. There will be an option to modify that number if it is no longer an accurate reflection of family size.

SAI will no longer be divided by number in college. With the number in college removed from the formula, many students may have SAI double or triple with no change in family income.

SAI could be as low as -$1500, allowing the neediest students to receive aid in excess of the Cost of Attendance. Additionally, businesses and farms of any size are now counted as an assest.

How To Prepare: 

TxCAN recommends that all college access practitioners attend at least one FASFA training and information this fall. Below are a few options to choose from. Additionally, please subscribe to the TxCAN Monthly Newsletter to receive updates on available trainings throughout the year.

• Attend a uAspire FAFSA Simplification Informational Webinar – This free webinar explores key changes coming to the 2024-25 FAFSA form. We’re closely following FAFSA simplification developments to understand how it will impact students and families. We’ll share what we learn, answer questions based on the information available, and share resources for further learning.

Dates:

August 16 at 2 pm ET/11 am PT

• Attend NCAN’s Getting Ready for Better FAFSA Webinar Series –NCAN is hosting a series for free webinars from August through December that will cover Better FAFSA related topics including:

• Line-by-line review of the new form
• Updates to the FSA ID process for those people without Social Security Numbers
• Reviewing the FAFSA Submission Summary (formerly the Student Aid Report)

• The status of resources and tools available from FSA and NCAN

These webinars will cover the same content, so please only register for one.

Dates:

Monday, August 28 12-2 pm CST

Tuesday, September 26 12-2 pm CST

Monday, October 23 12-2 pm CST

Monday, November 20 12-2 pm CST

Monday, December 4 12-2 pm CST

Review the following materials as they are released: 

• The Pell Grant Look-Up Tables will be released by May 2023. These tables will show the eligibility thresholds for minimum and maximum Pell Grants by household size and adjusted gross income. This early awareness tool will help students and families understand the federal grant aid that may be available to them long before they are able to complete the FAFSA and receive their SAR.
• The Better FAFSA preview will be available by July 2023. This tool will allow counselors and students to see the process for applying for federal student aid in advance. It will be accompanied by training materials, including screenshots, to help college access and success counselors prepare to support students through the new process.
• The process for obtaining an FSA ID for individuals without a Social Security number will be released by August. Applicants for FSA IDs will be able to verify their identity through the TransUnion Credit Bureau or through other electronic means.
• Keep an eye out for updates from the Department of Education here.

• Keep an eye out for additional tools and resources from NCAN here.

 

 

TxCAN will continue to be a resource for practitioners and provide updates and training later this year. Be on the lookout for updates from TxCAN, and make sure you are subscribed to our newsletter.