In 2021, the FAFSA Simplification Act was passed resulting in major changes to the Free Application for Federal Student Aid (FAFSA). Although some of these changes went into effect last year for the 2023-2024 award year, many of the major ones will be seen this year (2024-2025 award year).
But what should you expect with these changes? Is it better than the past version? Here’s what you need to know.
What is the “Better FAFSA?”
Being called the “Better FAFSA,” one of the major benefits is a simplified application making it much easier for families and students to complete. Here are some changes that you could expect in this year’s form and offer letters:
- There will be fewer questions
- Applicants are given a demographic survey but can choose to decline the answers if they don’t want to participate.
- The formula used to determine who gets aid is changing.
- The Expected Family Contribution (EFC) is being replaced with the Student Aid Index (SAI).
The new FAFSA’s formula is being called more generous, and more people will be eligible for federal programs, including the Pell Grant, with the new federal aid formula. However, this isn’t the case for everyone. Those who have incomes between $60,000 and $100,0000, own farms, and/or own small businesses could lose out on opportunities, including Pell Grants.
When Will the New FAFSA Be Released?
Although the FAFSA is usually released on October 1st, this year is different. The 2024-25 FAFSA will not become available until December 2023. Due to the major changes, the U.S. Department of Education’s Office of Federal Student Aid had to delay the release.
Colleges and universities that offer financial award letters based on the FAFSA usually do not require you to submit your FAFSA until March or April. It is very important, however, to get your application in as soon as possible as always. Financial aid can and will run out, and with a shorter window to apply, you need to plan ahead.
What are the Benefits of the New FAFSA?
The major benefit of the new FAFSA is it’s faster and easier to complete! While you still need to have access to your family’s income, expenses, taxes, and personal information, fewer questions mean less time spent completing the form and more time for college and scholarship applications.
And while there will definitely be some who will be hurt by the changing federal aid formula, a majority of people will benefit. Those who weren’t eligible before may find new opportunities with the new FAFSA. Families who make less than 175% of the federal poverty level, for example, will receive an automatic Pell Grant for the maximum amount.
The changes that are coming with the FAFSA are certainly big. As December 2023 approaches, students and families should regularly visit and review the upcoming FAFSA changes to be sure they’re prepared.
Although many will benefit from the upcoming changes to federal student aid, it may still not be enough for students to attend and afford school. If you find yourself in this boat, you have options. Student loans from private lenders could help to bridge the gap. Find out more here.
| Lender | Rates (APR) | Eligibility | |
|---|---|---|---|
 |
6.98%-15.04%* Variable
5.99%-14.00%* Fixed
|
Undergraduate and Graduate
|
VISIT CITIZENS |
 |
6.37% - 16.70% Variable
4.50% - 15.49% Fixed
|
Undergraduate and Graduate
|
VISIT SALLIE MAE |
|
|
4.98% - 16.85% Variable
4.07% - 16.49% Fixed
|
Undergraduate and Graduate
|
VISIT CREDIBLE |
 |
6.07% - 11.31% Variable
4.39% - 10.39% Fixed
|
Undergraduate and Graduate
|
VISIT LENDKEY |
 |
6.24% - 15.85% Variable
4.29% - 15.76% Fixed
|
Undergraduate and Graduate
|
VISIT ASCENT |
 |
6.54% - 11.08% Variable
3.95% - 8.01% Fixed
|
Undergraduate and Graduate
|
VISIT ISL |
 |
5.62% - 18.26% Variable
4.11% - 15.90% Fixed
|
Undergraduate and Graduate
|
VISIT EARNEST |
 |
4.98% - 12.79% Variable
8.42% - 13.01% Fixed
|
Undergraduate and Graduate
|
VISIT ELFI |
