*NEW* 2024-2025 FAFSA Update (FAFSA Simplification)

Instead of opening in October, the 2024-2025 FAFSA will not be available until December 2023. This is only temporary for 2024. After the 2024-2025 aid year, the FAFSA will be available in October, as usual. 

The FAFSA will feature fewer questions, fewer requirements, and retrieve tax information using a direct data exchange from the IRS instead of the previous IRS Data Retrieval Tool. All Contributors (student, student's spouse (if married), and student's parents(s) (if a dependent student)) must provide consent to have tax data transferred directly from the IRS to the FAFSA. If consent is not provided by all parties, the student will not be eligible for federal financial aid. In previous years, transferring IRS data was optional. It is now required. 

Contributor:

The FAFSA is introducing the new term contributor, which refers to anyone who is required to provide information on a student’s FAFSA form, 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.  

• Students 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 the FAFSA.  
• Contributors will need to provide personal and financial information on their section of the FAFSA.  

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 is not automatically the parent you primarily lived with during the past 12 months. 

All Contributors–student, student's spouse (if married), and student's parents(s) (if a dependent student)–must provide consent to have tax data transferred directly from the IRS to the FAFSA. If consent is not provided by all parties, the student will not be eligible for federal financial aid. In previous years, transferring IRS data was optional. It is now required. 

Student Aid Index (SAI): 

The need analysis formula to determine financial aid, formerly known as the Expected Family Contribution (EFC), will now be referred to as the Student Aid Index (SAI). Unlike the EFC, the SAI may be a negative number. 

Small businesses and family farms are now considered assets*. 

• *The Department of Education will provide more details in the coming months.  

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. 

FAFSA Submission Summary: 

The Student Aid Report (SAR) will now be referred to as the FAFSA Submission Summary. This is the summary submission document you receive after completing the FAFSA. 

The adjustments to the new Student Aid Index (SAI) calculation will expand Federal Pell Grant eligibility to more students. 

SAI, or Student Aid Index, is replacing the term Expected Family Contribution, known as EFC. The SAI brings a change in the methodology used to determine aid. 

• The SAI is a number used to determine eligibility for need-based aid. It is calculated using information the student (and contributors, if required) provides on the FAFSA form. 
• The SAI will replace the Expected Family Contribution (EFC) starting in the 2024–25 award year. 
• A student’s SAI can be a negative number down to –1500. 

Important: Your federal award equals Need= Cost of Attendance (COA) –Student Aid Index (SAI) –Other Financial Assistance (OFA). 

The Student Aid Index (SAI) represents a change in the methodology used to determine aid: 

• Child support received will now count as an asset instead of income. 
• Family farms and small businesses will now count as assets. 
• The number of family members in college is no longer considered in the needs analysis formula, but it is still a required question on the FAFSA® form. 

Maximum Pell Grant - Students may qualify for a maximum Pell Grant based on family size, adjusted gross income, poverty guidelines, and tax filing status. Students qualifying for a maximum Pell Grant will have a Student Aid Index (SAI) between –1500 and 0. 

Student Aid Index (SAI) - Students who don’t qualify for a maximum Pell Grant may still be eligible, if their calculated SAI is less than the maximum Pell Grant award for the award year. The student’s Pell Grant award will be equal to the maximum Pell Grant for the award year minus their SAI. 

Pell grants will no longer be awarded per enrollment category.  Pell grants will now be awarded per amount of credits (see diagram below). 

Credit Hours	Enrollment Category (Old)	Enrollment Intensity (New)
12 (or more)	Full-Time	100%
11	Three-Quarter Time	92%
10		83%
9		75%
8	Half-Time	67%
7		58%
6		50%
5	Less-than-Half-Time	42%
4		33%
3		25%
2		17%
1		8%

The following timeline provides an overview of upcoming changes due to the FAFSA Simplification Act. Additional dates will be added as we learn more information. 

Date	Item Description
December 2023	The Free Application for Federal Student Aid (FAFSA) for the 2024-2025 year opens.
April 2024	California College Promise Grant (CCPG) Award Notifications will begin to go out.  If you applied for admission through CCCApply and have completed the financial aid process, you will receive a California College Grant Award Notification through your preferred email informing you that your registration fees for Summer 24, Fall 2024 and Spring 2025 are waived, if eligible.  The award will also be available in Self-Service.  IMPORTANT:  Your Social Security Number must be on file with Enrollment Services.
Summer 2024	Financial Aid Award Notifications will begin to go out.  If you have completed the financial aid process, including submission of all requested documents, you will receive a Financial Aid Award Notification Notice through your preferred email account and Self Service.

While the 2024-2025 FAFSA won’t be available until December, you can still prepare by doing the following: 

• Create an FSA ID on the Federal Student Aid website and assist contributors, such as your parent(s) or spouse, in creating an FSA ID. 
• An FSA ID is an account and password that gives you access to the Federal Student Aid’s online system and serves as your electronic signature. 
• With the FSA ID, you can fill out the FAFSA when it’s available, sign your Master Promissory Note (MPN), apply for repayment plans, complete loan counseling, and use the Public Service Loan Forgiveness Help Tool. 
• Complete the FAFSA as soon as it opens in December. 

The Federal Student Aid Estimator provides students and families an estimate of their 2024-2025 federal financial aid using the new Student Aid Index (SAI).  

Please note: This is not a FAFSA. Students will need to complete a 2024-2025 FAFSA when it becomes available after December 2023. 

Contributors  

• What are Contributors on the FAFSA 2024-25?  
  Contributor is a new term introduced on the 2024-25 FAFSA form. It refers to anyone asked to provide information on a student's FAFSA form, i.e., the student, the student's spouse, a biological or adopted parent, or the parent's spouse (stepparent).
   
  A Contributor is NOT a grandparent, foster parents, legal guardian, brother or sister, aunt or uncle, even if they helped provide for or raise the student. 
   
  A Contributor on the FAFSA form doesn't mean they are financially responsible for the student's education costs.  

• How are Contributors determined?  
  The student's or parent's answers will determine which contributors (if any) will be required to provide information.   

• What do Contributors need to provide?  
  These contributors will be invited to complete their portion of the FAFSA form by entering their name, date of birth, Social Security number, and email address. They must also provide personal and financial information in their own sections of the FAFSA form.  

• What are the steps Contributors must follow? 

1. 1. Contributor receives an email informing them that they've been identified as a contributor. 
   2. Contributor creates a StudentAid.gov account if they don't already have one. 
   3. Contributor logs in to account using their FSA ID account username and password. 
   4. Contributor reviews information about completing their section of the FAFSA form. 
   5. Contributor provides the required information on the student's FAFSA form.  

• What if I am a Contributor and don't want to provide my information in my student's FAFSA?  
  Being a contributor does NOT implicate financial responsibility. However, if a required contributor refuses to provide their information, it will result in an incomplete FAFSA form, and the student will become ineligible for federal student aid.  

• What if my parents are divorced? Who is the contributor to my FAFSA?  
  Students that live with a single/divorced/widowed parent and receive most support from that parent, will report only one parent on the FAFSA.
   
  The parent included in the FAFSA as a contributor must be the parent that provides the greater portion of the student's financial support. If that primary parent is remarried, the income of that parent's spouse (stepparent) will also be required.

• Why does the FAFSA 2024-25 require consent from students and contributors?  
  According to the Future Act, all students and contributors must provide consent to the following: 

1. 1. Have their federal tax information transferred directly into the FAFSA® form via direct data exchange with the IRS; 
   2. Have their federal tax information used to determine the student's eligibility for federal student aid; and 
   3. Allow the U.S. Department of Education to share its federal tax information with postsecondary institutions and state higher education agencies for use in awarding and administering financial aid. 

Important: Even if students or contributors don't have a Social Security number, didn't file taxes, or filed taxes outside of the U.S., they still need to provide consent. 

• What if I don't want to provide consent as a student or a required contributor?  

• • If a student or required contributor doesn't provide consent to have their federal tax information transferred into the FAFSA® form, the student will not be eligible for federal student aid—even if they manually enter tax information into the FAFSA form. 
  • Information about how federal tax information will be used and the consequences of not providing consent will be included on the FAFSA form. 
  • Legal parents must provide consent to transfer federal tax information, even if one of the parents didn't file or had no income. If parents fail to provide consent, the student will not be eligible to receive federal student aid. 

FSA ID 

• What is FSA ID, and who needs it? 

• • All students and contributors must create a StudentAid.gov account to complete the FAFSA form online. 
  • Students and contributors will use their FSA ID account username and password to log in to their accounts. 
  • Even if a parent or spouse contributor doesn't have a Social Security number, they can still get an FSA ID using their ITIN to fill out their portion of the student's FAFSA form online.  

• Do parents and students need to wait until FAFSA 2024-25 opens in December to create an FSA ID?  
  No. The FSA ID process is not changing. It's even better that parents and students can create the FSA ID and have it ready anytime before the FAFSA application starts.

• How do I or other contributors create an FSA ID?  
  To create an FSA ID, you'll need your Social Security number (SSN). Other information required is full name and date of birth. You'll also need to create a memorable username and password and complete challenge questions and answers to retrieve your account information if you forget it. You'll be required to provide your email address or mobile phone number when you make your FSA ID. Providing a mobile phone number and/or email address that you have access to will make it easier to log in to ED online systems and allow you to verify your FSA ID before using it on the FAFSA and additional account recovery options.  

This Federal Student Aid video can help create a step-by-step FSA ID.  

• Do parents without social security numbers also need to have an FSA ID?  
  Yes. Starting 2024-25, parents and/or spouses who are not U.S. Citizens or Eligible Noncitizens can use their Individual Taxpayer Identification Number (ITIN) to create an FSA ID once their taxes are still required.

• What if my parents are not in the United States?  
  Your parents' citizenship status doesn't affect your eligibility for federal aid. They cannot create an FSA ID, but you can complete the FAFSA on paper and ask for their signatures. For FAFSA purposes, you must provide your parents' income, no matter where they reside.  

• My parent is remarried. Is the parent's spouse required to get an FSA ID as well?  
  If the parent you indicate on the FAFSA is the parent who remarried, it'll depend on how they filed taxes. If they filed jointly, only one parent needs an FSA ID. If they filed separately, both parents would need their own FSA ID.  

• Will parents and students need to create a new FSA ID if they have had an FSA ID in the past?  
  No. You can retrieve your existing FSA ID if you forgot your username and password.  

• I created an FSA ID at a FAFSA night at my high school and could not use it immediately. Do you recommend creating it a few days before?   
  We have seen different situations when a parent creates their FSA ID, verifies it, and is ready to use, and sometimes the system asks them to wait 24-48 hours to use it. It depends on the information matching system.
   
  We recommend creating it a few days before starting the form. FSA IDs made on the day of might work but will not have full functionality yet, like using the Direct Data Exchange (FADDX) to transfer tax information.  

• Why do I have to set up two-step verification for my StudentAid.gov Account?  
  Two-step verification, a form of multi-factor authentication (MFA), helps protect your StudentAid.gov account with additional protection from fraud.  

• So each contributor needs a unique phone number or email for multi-factor authentication?  
  Yes! For example, a student and parent cannot use the same phone number for MFA.  

• Do both parents need to create FSA ID or just one like before?  
  This depends on the family's situation. For example, if a student has married parents filing taxes separately, both parents will need to make an FSA ID.  

• What is the impact if the student and parent already have an FSA ID?  
  None. Just ensure they are verified and ready to use when the FAFSA 2024-25 opens sometime in December 2023.  

• If a parent does not want to or refuses to create an FSA ID, is there an alternative for that parent to provide consent, such as mailing a wet signed consent page?   
  Starting 2024-25, a separate signature page will no longer exist. There are two alternative options for contributors to provide consent who do not want to or refuse to create an FSA ID: 

1. 1. The first example would be the student applying using the paper FAFSA and obtaining wet signatures from all contributors, including the parents, who also affirm their consent. 
   2. The other option is for the student completes their section and self-reports information for the parent section on the FAFSA form. When the student submits their FAFSA form without the parent's signature, it will be placed in rejected status by the FAFSA Processing System (FPS). The parent can then provide their signature and consent on a paper copy of the FAFSA Submission Summary. Now this method is not recommended due to complexity and increased processing time. 

Student Aid Index (SAI) & Pell Grant   

• What is the Student Aid Index (SAI)?  
  SAI, or Student Aid Index, is replacing the term Expected Family Contribution, known as EFC. The SAI brings a change in the methodology used to determine aid. 

• The SAI is a number used to determine eligibility for need-based aid. It is calculated using information the student (and contributors, if required) provides on the FAFSA form. 
• The SAI will replace the Expected Family Contribution (EFC) starting in the 2024–25 award year. 

• A student’s SAI can be a negative number down to –1500. 

Important: Your federal award equals Need= Cost of Attendance (COA) –Student Aid Index (SAI) –Other Financial Assistance (OFA). 

• What is the main difference between the SAI (starting FAFSA 2024-25) and EFC (used until FAFSA 2023-24)?  
  The Student Aid Index (SAI) represents a change in the methodology used to determine aid: 

• Child support received will now count as an asset instead of income. 
• Family farms and small businesses will now count as assets. 

• The number of family members in college is no longer considered in the needs analysis formula, but it is still a required question on the FAFSA® form. 

• How is Pell Grant eligibility determined?  
  Maximum Pell Grant - Students may qualify for a maximum Pell Grant based on family size, adjusted gross income, poverty guidelines, and tax filing status. Students qualifying for a maximum Pell Grant will have a Student Aid Index (SAI) between –1500 and 0.  

• Student Aid Index (SAI) - Students who don’t qualify for a maximum Pell Grant may still be eligible if their calculated SAI is less than the maximum Pell Grant award for the award year. The student’s Pell Grant award will be equal to the maximum Pell Grant for the award year minus their SAI.  

Minimum Pell Grant - Students whose SAI is greater than the maximum Pell Grant award for the award year may still be eligible for a Pell Grant based on family size, adjusted gross income, and poverty guidelines.  

• What if I had a low income and was not required to file taxes?  
  According to the IRS tax year 2022, these are the thresholds by filing status, if parents of a dependent student or an independent student (and spouse, if married) were not required to file a federal income tax return for 2022, the student will automatically receive a Student Aid Index (SAI) equal to –1500.  

• Why are Assets different on the FAFSA® 2024-25?  
  For the 2024–25 award year, some financial information previously considered income will be considered as assets. Also, some information not requested previously, like the family’s small business, will no longer be excluded from asset reporting.  

• If students get a negative SAI, will they get a higher Pell Grant?  
  Students with a negative or 0 SAI will be eligible for the maximum Pell Grant. The difference is that the negative -1500 SAI indicates the student has a higher need than the student with 0 SAI, being eligible for other grants, if available, like Federal Supplemental Educational Opportunity Grant (FSEOG).  

• If the family size is manually adjusted, will the SAI only be calculated based on the size drawn from the taxes?  
  It will be based on the family size that the family entered, if different from the taxes. Students may have to provide additional information if selected for verification.  

• What is the parallel between the 2024-25 Negative SAI and Pell Grant?   

Negative SAI	Pell Grant - Max/Min Determined by
As low as -1500  Non-tax filers receive automatic - 1500 SAI (when parents of dependent students or independent students and spouses are non-filers).	AGI (if required to file a federal tax return)  Household size  Federal poverty guidelines

 

FAFSA Simplification Overview

Understanding the Student Aid Index (SAI)

What is the Direct Data Exchange?

What is the Pell Enrollment Intensity?

Federal Student Aid — What is the FAFSA Simplification Act?