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.

Will the EFC be renamed?

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).

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.

Do both parents need to fill out FAFSA 2024 2025?

Your contributors will each need their own StudentAid.gov account too. “Contributor” is a new term on the 2024–25 FAFSA form—it refers to anyone (you, your spouse, your biological or adoptive parent, or your parent's spouse) required to provide information on your FAFSA form.

5 FAFSA Tips That Will Reduce Your EFC

What is the EFC called now?

The term “EFC” (expected family contribution) is changing

With the 2024-2025 FAFSA, the term Expected Family Contribution (EFC) will be replaced with the Student Aid Index (SAI) – this is a new need analysis formula that we will use when awarding need-based grants and scholarships.

How long will my 2024-2025 FAFSA be in review?

Despite this processing delay, students should file the 2024-2025 FAFSA as soon as possible to maximize aid eligibility. The status for all submitted FAFSAs will show as “In Review” until FAFSAs are processed in March.

What is replacing EFC on FAFSA?

FAFSA Simplification Act and the Student Aid Index

One such change is replacing the Expected Family Contribution (EFC) with the Student Aid Index (SAI), which will be implemented for the 2024–25 award year.

What is replacing FAFSA?

New methodology will be introduced to calculate and determine applicant eligibility. The Expected Family Contribution (EFC) will be replaced with the Student Aid Index (SAI). The new need-analysis formula allows for a negative SAI calculation and implements separate eligibility criteria for Federal Pell Grants.

Is a negative EFC good?

A student with a negative EFC has more need than the current formula reveals and as a result, the financial aid you provide may seem like it achieves less than intended. Seeing the negative EFC helps you target those students for other supports and/or additional aid if it is available.

Why is EFC 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 is my EFC wrong?

It's possible mistakes can be made, or your circumstances have changed since you filled out your FAFSA. If you believe that a college has calculated your EFC incorrectly, contact the financial aid office. Financial aid officers will explain how they determined your EFC and discuss your options.

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.

What does the 2024-2025 FAFSA look like?

The 2024-2025 FAFSA consists of only 36 questions, and much of the information needed will be pulled directly from federal income tax returns. Fewer questions means fewer roadblocks and fewer places where you have to pause your application to find the information you need.

Is FAFSA better now?

The Better FAFSA is simplified, redesigned, and streamlined. It is faster and easier to fill out, with most students and families completing it in less than 15 minutes. It ensures 845,000 more students will receive Federal Pell Grants to pay for college.

What is the most common mistake on the FAFSA?

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.

Is student aid index the same as EFC?

Student Aid Index (SAI) is the new name of Expected Family Contribution (EFC)—an important factor in the needs-analysis calculation on the Free Application for Federal Student Aid (FAFSA), the form used by colleges, states, and other scholarship providers to determine financial aid packages.

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.

How accurate is the EFC on FAFSA?

Despite its name, the expected family contribution (EFC) isn't the exact amount your family will pay toward your education — many families end up paying more than the estimated EFC, especially when including student loan interest. Rather, your EFC is a key factor in calculating your 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.

When should I fill out FAFSA for fall 2024?

The 2024–25 FAFSA^® form will launch in December 2023.

The federal deadline to submit the 2024–25 FAFSA form will be June 30, 2025. Some states and colleges have their own deadlines for financial aid, so check for updates at StudentAid.gov/fafsa-deadlines.

Is FAFSA first come first serve?

Each October, the FAFSA is available for the next school year. It is best to fill it out as early as you can because some aid is first come, first served. When you complete the FAFSA, you'll need to provide personal and tax information.

Is FAFSA first come first serve 2024?

Registration is available on a first-come, first-serve basis and remains open until filled. Information needed in order to complete the 2024-2025 application during the FAFSA and CADAA Completion Workshops: 2022 Student/Parent Tax Information.