BY ROGER SMITH
MOUNTAIN CITIZEN
The U.S. Department of Education announced the launch of the new Free Application for Federal Student Aid (FAFSA) Sunday. The launch, described as a soft opening, will see the form periodically available online while administrators monitor site performance and form functionality. They will initiate pauses for site maintenance and technical updates as needed to provide a better experience.
This year’s FAFSA, reshaped by bipartisan laws passed three years ago, promises a more streamlined experience. The redesigned form features fewer questions and allows direct data uploads, easing completion.
The updated FAFSA formula is expected to broaden opportunities for low-income and moderate-income students to qualify for financial aid. However, it also adjusts eligibility criteria, potentially reducing access for families with multiple college-going children.
The federal government uses the FAFSA to determine eligibility for federal grants, work-study jobs and loans. Additionally, many states and educational institutions rely on the FAFSA to allocate scholarships. Dependent students will require their parents’ financial details to complete the form, made easier by the FUTURE Act, which allows automatic tax information retrieval from the Internal Revenue Service with the family’s consent.
Significant changes to this year’s FAFSA include a reduction in the number of questions, with some applicants facing as few as 18 compared to the previous 103.
Another critical update is the transition to the Student Aid Index (SAI) from the Expected Family Contribution (EFC). The SAI, a measure of a student’s financial capacity for college and aid eligibility, can now produce a negative number, a departure from the EFC’s zero minimum. This new calculation no longer considers the number of children in college and requires reporting the value of family farms or small businesses.
The revision increases the income protection for students and their families in the aid calculation formula. This change will likely make more students eligible for the federal Pell Grant, a crucial aid for undergraduates with exceptional financial need.
Students from households below the poverty threshold will automatically receive the maximum Pell Grant. There are also revised thresholds for students with children and dependent students based on the federal poverty line.
Approximately 610,000 new students from low-income backgrounds will receive Pell Grants, driven primarily by the changes to these eligibility rules. Moreover, Pell recipients will receive more aid with nearly 1.5 million more students receiving the maximum Pell Grant.
“Pell Grants are a critical lifeline for millions of students and families to attend college or career school and pursue the American dream,” Federal Student Aid Chief Operating Officer Richard Cordray said in a press release. “We are deeply committed to making sure students from all backgrounds can easily apply for and receive the federal student aid they need through the better FAFSA form. In every state and the District of Columbia, more students than ever before will benefit from greater access to Pell Grants.”
To complete the FAFSA, students can visit fafsa.gov or submit a paper version. Each participant in the application process, including students and parents, must create an individual ID and password on the Federal Student Aid website. The online FAFSA allows listing up to 20 schools, while the paper version limits it to 10.
The federal deadline for the 2024-25 FAFSA submission is June 30, 2025. Despite the soft launch and no immediate urgency, the Education Department advises early submission to secure limited funds and meet early state and institutional scholarship deadlines. If you visit the site during a planned pause, check back later to access the form.
For further details, visit fafsa.gov.
