Previous | Can I have my student loans forgiven? Next | How do I handle high inflation?
March 07, 2024 / Joel Huffer
Important changes made to FAFSA

Important changes made to FAFSA

Are you planning to fill out the 2024-2025 Free Application for Federal Student Aid (FAFSA)? If so, you should know about some significant changes to form that were made by the United States government.

Changes to the Filing Process

The biggest change in filling out the FAFSA is how tax data is collected. Instead of manually entering information such as yearly income, the IRS will now transfer tax records directly into the FAFSA – with your permission, of course. This new approval process is easy, fast, and accurate, all at the click of a button.

The updates also include a new designation for those around the student applying for aid called contributors. Contributors include parents, guardians, spouses, and partners who must also log in and submit their information as a part of the application. It’s important to note that someone may be considered a contributor even if they’re not planning to contribute financially to the student’s education. Once the student fills out their section of the FAFSA, they will be told what contributors need to participate in their application.

To accurately complete the FAFSA, contributors must follow through on their section of the application. Here's a breakdown of how the process will work:

  • The student will create an FSA ID (a unique username and password used to access the website) and fill out their section of the FAFSA.
  • The student will be prompted to enter the email addresses of the contributors who need to provide information for their application (if any). Those contributors will receive a link to create an FSA ID and finish their portion of the application.
  • Each contributor will create an account and log in independently using their own FSA ID to approve releasing their tax information to FAFSA.

Both the student and the contributors must consent to access their tax information. This step is crucial for the FAFSA process. This consent applies to all situations, including those where a contributor does not have a Social Security Number, did not file taxes, or filed taxes outside of the United States.

Students must ensure that each contributor understands these requirements and completes their part of the process for the FAFSA application. If you need further assistance or specific details, visit the official FAFSA website.

Changes to CalculationsA graphic of two people analyzing a financial aid form.

Previously, an estimate of how much a student’s family was likely to contribute to a student’s education, the Expected Family Contribution (EFC), was used to calculate student aid amounts. The EFC has been replaced with the Student Aid Index (SAI). This is a number that schools can use to determine how much aid a student will need to attend. The transition from the EFC to the SAI significantly changes how student aid eligibility is calculated.

SAI Overview:

  • SAI Calculation Factors: The SAI takes into account the income of both the student and their contributors to assess the amount of aid for which a student is eligible.
  • SAI Number: Unlike the EFC, which was a dollar amount, the SAI isn’t tied to anything specific, but indicates a student's financial need to the school. The lower the SAI number, the greater the demonstrated financial need. The SAI can go as low as -1500.
  • Impact on Aid Eligibility: With the introduction of the SAI, there is an anticipated increase of about 15% more students qualifying for student aid. The SAI is designed to be more inclusive and responsive to students' financial situations.

These changes are based on an effort to make financial aid more equitable and reflective of a student's financial needs and to make filling out the FAFSA easier and quicker. Understanding these updates is the best way to ensure your FAFSA goes smoothly and you get the aid you need.

Joel Huffer is Corporate Communications Officer for F&M Trust.

Recent Articles
How do I handle high inflation?
How do I handle high inflation?

How do I handle high inflation?

April 11, 2024 / Megan Brindle

How to spot IRS imposters
How to spot IRS imposters

How to spot IRS imposters

April 04, 2024 / Ray Wills

Stocks and bonds for beginners
Stocks and bonds for beginners

Stocks and bonds for beginners

March 21, 2024 / Warren Hurt

Planning how to pay for your bundle of joy
Planning how to pay for your bundle of joy

Planning how to pay for your bundle of joy

March 18, 2024 / Courtney Shauf

Can I have my student loans forgiven?
Can I have my student loans forgiven?

Can I have my student loans forgiven?

March 04, 2024 / Joel Huffer

Tips for using peer-to-peer payment apps
Tips for using peer-to-peer payment apps

Tips for using peer-to-peer payment apps

February 21, 2024 / Matt Sheibley

Consider these things when filing your tax return
Consider these things when filing your tax return

Consider these things when filing your tax return

February 14, 2024 / Alyssa Proctor

Quishing attacks use QR codes to lure victims
Quishing attacks use QR codes to lure victims

Quishing attacks use QR codes to lure victims

February 08, 2024 / Ray Wills

2024 Annual Big Game Predictor
2024 Annual Big Game Predictor

2024 Annual Big Game Predictor

February 04, 2024 / Warren Hurt

Join our e-newsletter

Sign up for our e-newsletter to get new content each month.

NOTICE: YOU ARE LEAVING F&M TRUST!

You are now leaving the F&M Trust website. Links to third-party sites are provided for your convenience. Such sites are not within our control and may not follow the same privacy, security or accessibility standards as ours. F&M Trust neither endorses nor guarantees offerings of the third-party providers, nor is F&M Trust responsible for the security, content or availability of third-party sites, their partners or advertisers.