The FAFSA Simplification Act makes several significant changes to the FAFSA (Free Application for Federal Student Aid) process beginning next upcoming cycle: 2024-2025 and will launch in December of 2023. Here are some important changes:
A Simplified FAFSA: The questions on the FAFSA form have decreased significantly. This will make it easier and faster when completing the form.
Elimination of (EFC) Expected Family Contribution: The EFC calculation, which determines a student’s eligibility for need-based aid, has been eliminated and replaced with the Student Aid Index (SAI). This establishes distinct criteria for determining eligibility for Federal Pell Grants.
*Also, the new formula removes the number of family members in college to allow for a minimum SAI.*
Parents/Guardians should check with the colleges and universities their student is considering to find out what other aid may be available such as merit, scholarships and grants. By simplifying the process, the act aims to make it easier for students to access financial aid for college.