2024-2025 FAFSA Changes
The FAFSA Simplification & Future Acts
Planning to be enrolled during the 2024-2025 Academic Year (Summer 2024, Fall 2024, or Spring 2025) and are looking for financial aid opportunities? You will want to complete the Free Application for Federal Student Aid (FAFSA). Completing the FAFSA is the first step in your financial aid journey and something you complete each year. It is a free and quick application process that gives you access to the largest source of financial aid to pay for college!
Beginning with the 2024-2025 academic year, the Department of Education (ED) and Federal Student Aid (FSA) have implemented the congressional FAFSA Simplification Act and the FUTURE Act which represent a significant overhaul of the processes and systems used to award federal student aid. This includes:
- Updates to the FAFSA form experience
- Changes to the FAFSA need analysis calculation that determines aid eligibility
- Additions and changes to commonly known terminology
- Required changes to school policies, processes, and procedures
While this legislation aims to streamline the application process and increase grant eligibility, it is also important to acknowledge the challenges and delays it's causing across the country for students and families. Please click on each section below to read more about the changes and challenges, and how they may affect you.
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The Goal
Navigating the financial aid process can be daunting, especially for first-time applicants and those from underserved communities. It can also be confusing for returning students still figuring out how to navigate the financial aid process. The primary goal of the FAFSA Simplification Act and the FUTURE Act is to simplify the process of applying for federal student aid and to increase access to financial assistance for college students. These legislative measures aim to achieve several objectives:
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Simplify the Application Process: By reducing the number of questions and eliminating redundancies, the FAFSA Simplification Act aims to make the application process easier and more straightforward for students and their families. This simplification is intended to reduce barriers to applying for financial aid, particularly for underserved communities with limited financial literacy or resources.
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Enhance Accessibility: Efforts have been made to enhance the accessibility of the FAFSA application, ensuring that it is user-friendly and accommodating to a diverse range of applicants. This includes making the application available in multiple languages and providing assistance for individuals with disabilities.
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Expand Pell Grant Eligibility: The FUTURE Act specifically focuses on expanding eligibility for Federal Pell Grants, which are a crucial form of financial aid for low-income students. By increasing funding and adjusting eligibility criteria, the aim is to provide greater support to students from disadvantaged populations, enabling them to pursue higher education without facing undue financial burdens.
- While the changes to the need calculation could increase financial aid eligibility for some, it is important to note that others may see a decrease in aid due to other items being removed from and added to the need calculation.
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The challenges
Despite the well-intentioned reforms, the transition to the new financial aid framework has presented challenges for students and families nationwide. While the intention behind these changes is positive, the rollout from the Department of Education (ED) and Federal Student Aid (FSA) hasn't been without its challenges. Some of the prevalent issues include:
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Implementation & Rollout Delays
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Identifying issues with underlying need calculations
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Technical glitches
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Communication gaps
Implementation & Rollout Delays:
There have been delays in the implementation and release of the new FAFSA to students and families as well as continued delays of FAFSA data being sent to institutions.
The FAFSA is normally available on October 1 each year but was delayed until December 31st. When the FAFSA did open, it was only a soft launch of the application.
- The soft launch was intended to serve as a period for FSA to monitor and respond in real-time to issues with the form and user experience.
- Due to the soft launch period and continuous updates to the application, institutions were not expected to begin receiving data until the end of January.
- Institutions did not begin receiving data until April.
Identifying issues with underlying need calculations
04/09/24:
The Department of Education announced on Tuesday that it will reprocess nearly 30 percent of Federal Application for Federal Student Aid forms and send them to schools no later than May 1.
The forms identified were “potentially affected” by processing errors stemming from incomplete tax information and calculation errors from students and the FAFSA processing system, the release states. The Education Department officials said they expect most reprocessed offers to reduce the amount of aid students are eligible to receive
01/30/24:
The latest delay is due to an error the Department of Education (ED) made in the underlying financial need formula when implementing the new FAFSA. The need formula calculates the new Student Aid Index (SAI), which ultimately determines a student’s aid eligibility.
- ED forgot to account for inflation in the income protection allowance portion of the need analysis calculation, resulting in inaccurate SAIs.
- An income protection allowance is a certain amount of income that doesn't get counted when figuring out the type of financial aid you qualify for.
- Forgetting to account for inflation and negatively impacting students' eligibility. This was in direct conflict with the overall goal of the FUTURE Act to increase accessibility and an increase in grant eligibility to students.
- ED is correcting the error which will increase aid eligibility for some, however, until this occurs student and their contributors cannot make any changes to already submitted applications.
These delays have impacted the timely dissemination of information and access to resources, causing uncertainty and frustration among students, families, and stakeholders. Technical glitches and data release delays have hindered the smooth implementation of the new FAFSA system, resulting in challenges for individuals attempting to navigate the application process. However, rest assured that we're here to help navigate these hurdles and ensure you get the support you need.
Technical Glitches:
Technical issues and system errors, overseen by the Department of Education (ED) and Federal Student Aid (FSA), have marred the implementation of the new FAFSA system. These glitches, ranging from website crashes to data processing errors, have disrupted the application process for some individuals, leading to delays and inaccuracies in financial aid determinations. Consequently, students and families have faced challenges in accessing and understanding their financial aid options.
Some technical glitches experienced include:- Freezing screens
- Problems with information input
- Long wait times
- Broken pages
- Site unavailability
- Slow load times
- Outages when visitor volumes are high
- Inaccuracies in the aid calculation
- Processing delays
CLICK HERE FOR FSA'S ALERTS AND UPDATES REGARDING 2024-2025 FAFSA ISSUES.
Communication is Key:
We understand that staying informed is crucial during this time of change. That's why we're committed to providing clear, timely updates and guidance to students, families, and stakeholders. Whether you have questions about the application process or need assistance with eligibility requirements, we're here to support you every step of the way.
Institutions cannot create financial aid offers for students until they receive FAFSA data and have time to test and process the information. Normally, Millersville begins receiving FAFSA data in early October and begins sending financial aid offers to new students in early January.
- It was announced in early December that institutions were not expected to begin receiving data until the end of January instead of the normal early October timeframe.
- On January 30th, ED announced further delays to the release of FAFSA data to institutions has announced that they are now expected to begin sending data during the first half of March.
- Institutions did not begin receiving information until the beginning of April.
- On April 9th, ED announced it would need to re-process almost a third of all completed FAFSAs due to another error, this time related to tax data. These records must be reprocessed by ED for institutions to create a financial aid offer. Reprocessing is scheduled to begin the first half of April, however as of 4/16/24 reprocessing has not begun.
We recognize that waiting for updates about your financial aid application amid the many FAFSA processing delays has been extremely challenging. Our team wants to assure you that we are actively monitoring these issues and that Millersville University is committed to ensuring that your financial aid needs are met as promptly as possible.
Please be on the lookout for email communications from the Office of Financial Aid in the coming weeks with more information on the status of your FAFSA and if it needs to be reprocessed or requires an additional correction. Your financial well-being is our top priority, and we are dedicated to supporting you through this process and helping make it as smooth as possible.
Follow us on social media to stay up-to-date and for other related financial aid information.
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Navigating Challenges & Your next Steps
The transition to the new FAFSA Simplification Act has presented unforeseen challenges, resulting in delays in processing financial aid applications. Students and families may experience frustration and uncertainty as they await decisions on their aid packages. Additionally, technical glitches and system updates have further exacerbated delays, impacting timely access to critical financial assistance.
Despite these challenges, it's important to recognize the long-term benefits of the FAFSA Simplification Act and Future Act. While the initial implementation phase may be challenging, the streamlined process will ultimately make it easier for students and families to access financial aid in the future.
Your Next Steps
Ready to kickstart your financial aid journey for the 2024-2025 academic year? Here's what you can do:
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Complete the FAFSA: Don't wait! The sooner you submit your FAFSA, the sooner you'll know what financial aid you qualify for. Our team is here to help you through the process and answer any questions you may have. studentaid.gov/fafsa
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Stay Informed: Keep an eye out for updates and communications from our office. We'll continue to provide resources and support to ensure a smooth transition to the new financial aid system. Instagram | Facebook
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Reach Out: Have questions or need assistance? Don't hesitate to reach out to our team. We're here to help students, families, and stakeholders navigate the complexities of financial aid and ensure that everyone has access to the support they need to succeed. CALL US | email us | schedule appointment | stop by
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CHANGES TO THE FAFSA APPLICATION
Some key changes include, but are not limited to:
The number of questions on the FAFSA has decreased from 108 questions to 36. Students can list up to 20 schools on their FAFSA via the online application. Who will be required to contribute information on the FAFSA will be determined when the student completes their portion of the application where they will answer questions regarding their personal circumstances and, if considered dependent, questions about their parents using the "Who's My Parent Wizard".
- If your information is required to complete the FAFSA you will receive an email notification to complete your portion.
- The FAFSA will not be complete until all contributors complete their portion of the application.
For dependent 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 Data Retrieval Tool (DRT) has been replaced with Federal Taxpayer Information (FTI) and a Direct Data Exchange (DDE) with the IRS. Students, spouses, parents (biological or adoptive), and step-parents will now need to provide their consent in the new Consent to Retrieve and Disclose Federal Tax Information section of the FAFSA for federal student aid eligibility. This consent will allow the IRS to share FTI through a Direct Data Exchange (DDE).
- All parties must give consent regardless of whether or not they filed taxes.
- If any person required to contribute their information on the FAFSA does not provide consent, the FAFSA will be considered incomplete and the student will not be eligible to receive financial aid.
Parents without a Social Security Number will be able to apply for an FSA ID. This will speed up FAFSA processing time as they'll be able to submit the form online, rather than having to print, sign, and mail their application. Male students under the age of 26 are no longer required to register with the Selective Service System to receive federal financial aid. -
CHANGES TO CALCULATING YOUR ELIGIBILITY
Students and families will see a different measure of their ability to pay for college, and they will experience a change in the methodology used to determine aid.
The Estimated Family Contribution (EFC) has been replaced by the Student Aid Index (SAI). The SAI is a different way to determine aid eligibility. SAI will no longer take the number of students in college into consideration. This may reduce need-based aid eligibility for current students with siblings in college. The FAFSA Simplification Act expands the Federal Pell Grant to more students and will link eligibility to family size and the federal poverty level. Child support received will be included in assets and not as untaxed income. Families who own a small business/farm that also serves as a primary residence will now have assets of that business/farm considered in their need analysis calculation. -
New or updated common terminology
Students and families will see changes to commonly used FAFSA terms and completely new terminology and definitions.
Old Term
New Term
definition
Estimated Family Contribution (EFC) Student Aid Index (SAI) It's calculated based on information provided on a student's Free Application for Federal Student Aid (FAFSA) form and is used by colleges to determine how much federal student aid a student would receive if they attended the school.The SAI is the new name of Expected Family Contribution (EFC), which is an important factor in the needs-analysis calculation on the FAFSA. The SAI differs from the EFC in that it doesn't consider the number of family members in college.Student Aid Report (SAR) FAFSA Submission Summary (FSS) The student’s output document that provides a summary of the data entered on the FAFSA form. IRS Data Retrieval Tool (DRT) IRS Direct Data Exchange (DDE) Under the DRT, the taxpayer was allowed to transfer their data from the IRS into the FASFA. Whereas, a Direct Data Exchange (DDE) with the Internal Revenue Service (IRS) facilitates the completion of the FAFSA form. --- 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). --- FAFSA Privacy Act Consent Formal consent provided by an applicant and any applicable contributor(s) for a given FAFSA cycle that meets the statutory requirements of collecting and using an individual’s personally identifiable information (PII) under the Privacy Act. PII provided on the FAFSA (e.g., name, date of birth, social security number) with consent of the individual, will be provided to the IRS to conduct a match in order for the Department to receive FTI for purposes of determining an applicant’s federal financial aid eligibility and permit further redisclosure of FTI by the Department. --- Federal Tax Payer Information (FTI) FTI is the data and information related to federal tax paying. It includes a return or return information received directly from the IRS such as the taxpayer's name; mailing address; identification numbers including Social Security number or employer identification number; any information extracted from a return, including names of dependents or the location of a business; information on whether a return was, is being, or will be examined or subject to other investigation or processing; information contained on transcripts of accounts; the fact that a return was filed or examined; investigation or collection history; or tax balance due information --- Federal Tax Payer Information (FTI) Approval Formal approval granted by an applicant and any applicable contributors for a given FAFSA cycle to retrieve and use FTI to determine an applicant’s federal financial aid eligibility as well as permit the re-disclosure of FTI by the Department to an eligible institution; state higher education agency; or a designated scholarship organization for the application, award, and administration of student aid programs. An applicant and contributor (if applicable) must provide approval once each year. If FAFSA FTI approval is not provided, the student will not be eligible for any Title IV aid until the approval is provided by each contributor. Household Size Family Size The updated term is meant to capture the appropriate number of family members and dependents in the applicant’s household per the IRS and the number of dependents claimed. Families should have the opportunity to review and update this if the information from their tax return does not match their current situation. --- Primary Custodial Parent For a dependent student whose parents are divorced or separated, the primary or custodial parent is the parent who provides the greater portion of the student’s financial support and is required to provide their information (and if applicable their spouse’s information) on the FAFSA form. --- Provisionally Independent Student If a student indicates they have unusual circumstances such as no contact with their parents, are unaccompanied and homeless, or are at risk of being homeless they will be considered provisionally independent and they will be allowed to fill out the FAFSA form as an independent student. The SAI will remain provisional and not official until the student’s college or career school makes a final determination.