Did the FAFSA Simplification Act pass?

The FAFSA Simplification Act was passed Dec. 27, 2020, as part of the Consolidated Appropriations Act. The 2024-25 FAFSA has undergone major changes and improvements, so wasn't available until Dec. 31 2023.

Is the FAFSA changing in 2024?

Beginning with 2024-25, all persons on the FAFSA must provide consent for the Department of Education to receive tax information or confirmation of non-filing status directly from the IRS.

How will FAFSA change for divorced parents 2024 2025?

For students whose parents are divorced or separated, the Custodial Parent on your FAFSA will be the parent who provides you with the most financial support and will no longer be the parent with whom you lived with the most over the past 12 months.

Is FAFSA no longer using EFC?

Beginning in the 2024–25 award year, changes to the FAFSA process will include the following, among others: The Simplified Needs Test formula and automatic-zero EFC were eliminated.

What are the new rules for the FAFSA?

Starting with the 2024-25 form, the parent who provided the most financial support for the student over the last 12 months will be the FAFSA contributor. If this parent is remarried and didn't file their taxes jointly, their spouse will also be a contributor.

5 FAFSA Tips That Will Reduce Your EFC

When did the FAFSA Simplification Act passed?

The FAFSA Simplification Act was passed Dec. 27, 2020, as part of the Consolidated Appropriations Act. The 2024-25 FAFSA has undergone major changes and improvements, so wasn't available until Dec. 31 2023.

What is the FAFSA Simplification Act?

The FAFSA Simplification Act will expand the Federal Pell Grant to more students and will link eligibility to family size and the federal poverty level (starting with the 2024–25 award year).

What is replacing EFC?

The new changes mean the Expected Family Contribution (EFC) will be replaced with something called the Student Aid Index (SAI) beginning in the 2024-25 award year (which is the FAFSA you will begin to fill out this year).

How do I get my EFC to zero?

The FAFSA assigns an auto-zero EFC to students who report $27,000 or less in income. Eligible applicants are not expected to contribute financially to their college expenses.

How do I get 0 EFC on FAFSA?

Which parent fills out FAFSA?

Remember, you will need information from both parents if they still live together, even if they are considered divorced or separated by law. If your parents do not live together, the parent who provides greater financial support is the one who will be required to provide their financial information on the FAFSA.

What are FAFSA income limits?

Both students and their parents often think their household income makes them ineligible for financial aid. However, there's no income limit for the FAFSA, and the U.S. Department of Education does not have an income cap for federal financial aid.

Does a stepparent income affect FAFSA?

The stepparent's income and assets must be reported on the FAFSA, regardless of any prenuptial agreements. The stepparent's other children must be counted on the FAFSA if the stepparent provides more than half of their support, even if they do not live with the stepparent.

What is the income limit for FAFSA 2024?

Students filing the simplified 2024-2025 FAFSA beginning in December 2023 will be eligible for the Maximum Pell Grant if their parent(s) are exempt from filing a federal income tax return or if their adjusted gross income is at or below 175% of that family's poverty level (225% of the poverty level if the parent is ...

What changes are coming to the 2024-2025 FAFSA?

Beginning 2024-2025, new change removes the half-time enrollment requirement. The parent responsible for submitting the FAFSA in cases of divorce or separation has changed. For dependent students, financial information was previously needed from the parent(s) the student had lived with the most in the last 12 months.

How much is the Pell Grant for 2024-2025?

Although $7,395 is the maximum Pell Grant Scheduled Award for the 2024-2025 award year, institutions are reminded that a student may be eligible to receive Pell Grant funds for up to 150 percent of the student's Pell Grant Scheduled Award for an award year.

Will I get a Pell Grant if my EFC is 0?

When your EFC is zero, you are eligible for almost all federal based aid programs available. This includes, Pell Grants, Federal Work-study programs, and Stafford loans.

What is the EFC for 100k income?

The basic theory is that the lower your EFC, the bigger your financial aid award. A family with an adjusted income of $50,000 and two dependents would expect to have an EFC of around $3,800 without considering any other financial assets. A family with income of $100,000, would have an EFC of approximately $20,000.

Why is my EFC so high with no income?

There are some special circumstances (like if there's a large amount of money in a savings account in the dependent student's name) in which your EFC might be high even if your family's income isn't.

Why is FAFSA removing the sibling discount?

Starting with the 2024–2025 academic year, the discount currently available under the Free Application for Federal Student Aid (FAFSA) to families with multiple enrolled children disappears, a byproduct of new legislation that seeks to simplify the form that determines financial aid eligibility.

Why is my EFC so high on my FAFSA?

EFC is based on the parents' and student's income and assets. A high EFC is likely the result of high income or a high value of assets as reported on the FAFSA. Assets considered include bank account balances, capital gains and, sometimes, equity held in businesses and real estate.

Is the FAFSA eliminating the sibling discount?

The decision to eliminate the Sibling Discount comes amid FAFA changes and revisions by the Department of Education for the 2024-2025 academic year.

Can FAFSA be forgiven?

If you work full time for a government or nonprofit organization, you may qualify for forgiveness of the entire remaining balance of your Direct Loans after you've made 120 qualifying payments—i.e., 10 years of payments. To benefit from PSLF, you need to repay your federal student loans under an IDR plan.

What is the maximum Pell Grant for 2024-25?

The maximum Pell Grant award for the 2024-25 academic year is $7,395. Some students can qualify for more than $7,395 in Pell Grants each year through Year-Round Pell.

Why is FAFSA changing?

For the 2024-25 award year, the FAFSA is getting a facelift that includes a redesign and fewer questions. Plus, formulas determining aid eligibility have been modified with the goal of expanding financial assistance for low-income families.