Is EFC FAFSA going away?

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).

Is FAFSA getting rid of 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.

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.

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.

Is EFC the amount I have to pay?

However, it's important to note that your EFC is not the exact amount that you'll need to pay for college. It's a baseline that can be used to work out your financial need, but you may end up paying significantly more (or less) than this figure.

5 FAFSA Tips That Will Reduce Your EFC

What happens if parents can't pay EFC?

If your parents or guardians refuse to pay for college, your best options may be to file the FAFSA as an independent. Independent filers are not required to include information about their parents' income or assets. As a result, your EFC will be very low and you will probably get a generous financial aid offer.

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.

What is the new EFC for FAFSA?

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).

What changed for FAFSA 2024 2025?

The number of questions will be reduced and the application will maximize the use of previously collected data. Students will be able to list up to 20 schools on their FAFSA via the online application. The Student Aid Index (SAI) will replace the Expected Family Contribution (EFC).

Does FAFSA have a sibling discount for 2024?

No benefit for having siblings in college: Previously, the FAFSA divided the EFC proportionally based on the number of household members in college. The elimination of this "sibling discount" will be the biggest change in aid eligibility for some students.

What is the income limit for FAFSA 2024?

What Are the FAFSA Income Limits for 2024? 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.

What is replacing the expected family contribution EFC in the new FAFSA changes?

After the FAFSA simplification: The EFC is being replaced by the Student Aid Index (SAI). And similar to the EFC, the lower the SAI, the more aid you'll be eligible for.

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.

Why is my EFC on FAFSA so high?

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.

Can I dispute my EFC?

A financial aid appeal can either go two ways: it can be denied or approved. If an appeal is approved, the financial aid administrator will make changes on the student's FAFSA. From there, a new EFC will be generated, which will result in a new financial aid package.

Why did my EFC change?

Your EFC may be lowered if your family has had a significant change in income or expenses since you applied.

What are FAFSA income limits?

There are no income limits to apply, and many state and private colleges use the FAFSA to determine your financial aid eligibility.

Will student loans take my taxes in 2024?

Collection activities are currently paused for all federal student loans through September 2024, which should protect your 2022 and 2023 federal and state tax refunds. But you may need to take action.

Does the 2024 2025 FAFSA ask for income?

You and your contributors may need to answer FAFSA questions about untaxed income, such as child support and interest income. Remember: On the 2024–25 FAFSA form, you'll use 2022 tax or calendar year information to answer these questions.

What EFC will get a Pell Grant?

The maximum expected family contribution (EFC) eligible for a Pell Grant for the 2023–24 award year is 6656 as compared to 6206 for the 2022–23 award year.

Will I get financial aid if my parents make over $200 K?

But you might be surprised to learn that there are no FAFSA income limits to qualify for aid. For example, a family with a household income of hundreds of thousands of dollars could be helped by other factors in the FAFSA formula, including school costs and the number of siblings also attending school.

What does EFC 00400 mean?

Your FAFSA EFC number is equal to a dollar amount. For example, 4000 is $4,000. Your EFC isn't the amount of money you will be paying for college. It also isn't the amount of money you will get in financial aid. Rather, it is used in the formula for calculating your financial need.

What do I do if my EFC is too high?

You may need to start an appeal process — called professional judgment — to have your EFC and financial aid adjusted if you've already received a financial aid package. Begin by reaching out to your financial aid advisor, who can assist you with the next steps.

How do you get a 0 EFC?

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. Only certain groups qualify. Dependent students qualify based on parental or guardian financial information.

What happens if my EFC is 0?

According to the Federal Student Aid Office (FSA), students who qualify as having 0 EFC are eligible to receive all types of need-based aid to pay for their education as their families are unable to financially contribute.