A Better FAFSA …
For the first time in decades, a significant overhaul to the US FAFSA is underway. The 2024-25 school year will be the first to use this new FAFSA, and while the changes are for the better, the transition has been bumpy. WSU Student Financial Services is committed to standing by all students as we navigate the updated processes together.
Why has the FAFSA changed?
At the end of 2021, Congress passed the FAFSA Simplification Act. This act changes not only the questions presented to students and families, but also how their tax information is presented, who can be listed on the application, how the information will be sent to institutions, what subsequent questions institutions can ask, among other changes.
The road to implementing these new FAFSA updates has been a long one. First the Department of Education entered a soft launch period during which they monitored site performance, conducted pauses for maintenance, and made updates to improve the user experience for students and families. Many students and their families experienced technical errors during this time. Studentaid.gov has kept a running list of known and documented issues.
If 2024-25 is your first time filling out a FAFSA, then the changes won’t be noticeable to you. However, if you or a relative have filed a FAFSA in the past, you will see some significant differences in how the form looks and how your aid is calculated. Take note of the changes below; it’s possible that even with identical FAFSA answers between years, your aid may look different now.
Impacts & Benefits
The goal of the FAFSA Simplification Act is to make the FAFSA easier for students and their families to submit. This means:
- Fewer questions
- A quicker form that’s easier to read!
- Fewer requirements
- Some students will see increased eligibility!
- IRS Direct Data Exchange
- Tax information is pulled straight from the IRS without you or your contributors needing to manually fill it out!
According to the US Department of Education (ED), these new parameters will make it easier for students to qualify for the Federal Pell Grant. If you weren’t eligible before, it’s possible you may be eligible now, so be sure to fill out your FAFSA for the upcoming school year. It’s free and there are no downsides!
What’s the Same
Before we dig into the differences on this new FAFSA, let’s briefly go over what won’t be changing. Basic eligibility requirements, determining your dependency status and the use of prior-prior tax data will all remain the same as they were in previous years.
Basic Eligibility
There have been no changes to basic FAFSA eligibility. To fill out a FAFSA and be considered for federal financial aid, you must be one of the following:
- A United States Citizen
- A U.S. permanent resident with registration card I-551
- Non-citizen with an I-94 entry/exit record showing:
- Refugee,
- Asylum Granted,
- On Parole for One Year, OR
- Cuban-Haitian
Undocumented students who qualify under HB-1079 or DACA may fill out a WASFA (Washington Application for Student Financial Aid) instead.
Dependency Status
All students are either “dependent” or “independent” for FAFSA purposes. This is a separate requirement unique to the FAFSA and is unrelated to whether or not you have parents who claim you as a dependent on their taxes. The default is dependent, unless you can answer “Yes” to at least one of the FAFSA’s dependency questions, and those questions aren’t changing from previous years. If you need a refresher, you can visit the Student Aid website to read about the full requirements for independent status.
Prior-Prior Year Tax Data
The FAFSA will still use “prior-prior” year tax data, meaning tax info from two years ago. This allows the FAFSA to be calculated based on taxes which have already been filed and completed, rather than taxes which may still be caught up in the IRS filing process.
We understand that a lot can change in two years, or that sometimes a single year’s taxes may be misleading. If you or your family’s income or expenses have significantly changed or you have new expenses, you may apply for a professional judgement and update to your FAFSA. Visit our special circumstances page to see if an appeal may be right for you. Some examples of circumstances that could warrant an appeal include:
- Death in the family
- Significant income loss
- Medical expenses
- Change in marital status
What’s Changing
The new and improved FAFSA is quicker and easier thanks to its streamlined setup. The new online form also employs “skip logic”, which means only questions relevant to your situation will appear.
Pay attention to the differences in how the FAFSA handles your contributors, divorced parent situations, small business assets, and family size. These have changed from previous years and could result in a difference between your new and previous aid offers.
Contributors
A contributor refers to anyone who is required to provide information on a student’s FAFSA, including the student, the student’s spouse, a biological or adopted parent, or the parent’s spouse. Being a contributor does not imply responsibility for the student’s college costs.
- You, the student, will need the contributor’s name, date of birth, Social Security Number (SSN), and email address to invite them to complete the required portion of your FAFSA.
- Contributors will need to provide personal and financial information on their section of your FAFSA. They will only be able to see and complete their own specific sections of your FAFSA.
- All Contributors must provide consent to have their federal tax information (FTI) transferred directly from the IRS to the FAFSA. If consent is not provided by all parties, you will not be eligible for federal financial aid. In previous years, transferring IRS data was optional; moving forward, it’s required.
Divorced or Separated Parent Situations
If your parents are divorced or separated, the contributing parent(s) is the parent (and their spouse, if remarried) who provided the greater portion of your financial support during the 12 months immediately prior to filing the FAFSA.It no longer will default to the parent you primarily lived with during the past 12 months.
Family Size and Number in College
The number of people in your family size will be automatically pulled in from your Federal Tax Information (FTI).The number of family members in college will still be asked on the FAFSA, but it will be excluded from the federal, state, and institutional financial aid calculation.
Small Business and Farm Assets
The net worth of any small business and/or farm assets must be included on the FAFSA. Remember: net worth = asset value minus asset debt.
FSA ID Requirements
One more change to this year’s new FAFSA is the FSA ID requirements. Beginning with the 2024-25 FAFSA, all students and contributors will need to have their own FSA IDs. Even if your contributor does not have a social security number, they will still need an FSA ID. (Students without social security numbers will need to look into filing a WASFA instead of the FAFSA.)
Initially there were delays with FSA IDs for contributors without social security numbers. This issue has been resolved now, and FSA ID processing should take no more than five business days for all recipients.
New FAFSA Terminology
Most students won’t have to worry too much over FAFSA terminology, but it could come up if your case is more involved. If you’re used to hearing terms from previous years, the new vocabulary could cause confusion. So just be aware that the following terms are changing:
EFC is now SAI
The final figure calculated by the FAFSA will no longer be called the Expected Family Contribution (EFC). Rather, it will be called the Student Aid Index (SAI) to more accurately describe how that number is used to determine financial aid eligibility.
SAR is now FAFSA Submission Summary
Similarly, the Student Aid Report (SAR) which is the confirmation of what’s been submitted will now be referred to as the FAFSA Submission Summary.
Known Issues
The Department of Education is in the soft launch period of the 2024-25 Free Application for Federal Student Aid (FAFSA) form. During the soft launch period, they will monitor site performance, conduct pauses for maintenance, and make updates to improve the user experience for students and families.. If you are experiencing issues with any portion of your 2024-2025 FAFSA Application, check studentaid.gov to see if this is a known and documented issue.
What is an FSA ID?
An FSA ID is a username and password that you must use to log in to certain U.S. Department of Education (ED) websites. Your FSA ID identifies you as someone who has the right to access your own personal information on ED websites such as the Free Application for Federal Student Aid (FAFSA).
Who Needs an FSA ID?
Beginning with the 2024-25 FAFSA, all contributors (student, student’s spouse, and/or parent) must have their own FSA ID.
How Do You Get an FSA ID?
To create your FSA ID, please go to https://studentaid.gov/fsa-id/create-account/launch.
Forgot Your FSA ID?
To retrieve a forgotten FSA ID or password, please go to https://studentaid.gov/fsa-id/sign-in/landing and click either the “Forgot my Username” or “Forgot my Password” links.
When to Create Your FSA ID
If you’ve got a Social Security Number (SSN), you can create it now! In general, because it can take up to 5 business days, we recommend creating it at least a week before you start your FAFSA.
Ready to fill out your financial aid application? Visit our getting started page to determine whether you’re FAFSA- or WASFA-eligible!