FAFSA FORECAST /

IF YOU’RE AMONG THE APPROXIMATELY 18 MILLION PEOPLE WHO COMPLETE THE FAFSA EACH YEAR, HERE’S A GUIDE TO SOME OF THE MAJOR CHANGES YOU’LL FIND ON THE 2024–25 FORM, PLUS INFORMATION ABOUT UPCOMING CHANGES IN STUDENT LOAN REPAYMENT.

By Shari Held

ANYONE WHO has ever applied for college knows about the Free Application for Federal Student Aid. The very thought of completing the crucible of student financial aid has intimidated applicants and their families throughout the years. But complete it they must, for each year the student wishes to qualify for assistance. Good news is ahead. For the first time in decades, the form is undergoing a major revamp via the FAFSA Simplification Act. Its overarching goals are to make a college education accessible to more applicants and to make the FAFSA easier to complete.

The 2024–25 FAFSA won’t be available in October as it was in previous years. Don’t expect to see it until the end of December this year. Meanwhile, information about the changes is being rolled out bit by bit as the Department of Education finalizes the new form.

“We’re still in the learning process on some of this,” says Joanna Riney, director of student financial assistance at University of Southern Indiana. “We don’t really know all the changes that are coming or the things we’re going to need to implement.”

Please note, the information in this article is based on available information at the time, which may change somewhat by the time the FAFSA comes out in December.

Friendlier Format

So, what changes can you expect to see on the revised FAFSA? First of all, in the spirit of simplification, there won’t be as many questions for students and parents to answer.

Scott Thum, student financial services director for Indiana Tech, points out that although the FAFSA may require less information from students and families, schools might need to modify their application forms to capture information no longer found on the FAFSA. “For example, schools need to know where students will be living because we have to make separate budgets for off-campus or on-campus students,” Thum says.

IRS data retrieval is also simplified. “Starting with the 2024–25 year, students and parents will provide their consent, and the IRS will directly exchange the data with the FAFSA instead of them having to go in and import the information themselves,” Riney says. “That’s a huge change.” the FAFSA. If they are completing the form online, they will need to request that their “contributor” (parent, guardian, etc.) go online and provide their information to the FAFSA.

Switching From Efc To Sai

Besides simplifying the FAFSA, the Department of Education is changing the calculation for determining a student’s eligibility for financial aid. Beginning with the 2024–25 school year, the Student Aid Index will replace the Expected Family Contribution. “The Department of Education is indicating that we should see more students who qualify for the Federal Pell Grant under the new calculation than under the old approach,” says Nathan Lohr, FAAC, director of financial aid for University of Indianapolis.

The Federal Pell Grant is the main needs-based award offered by the federal government.

Riney adds that this feature will be available to the majority of students and parents, but it may be unavailable to some applicants depending on marital status and tax filing status.

Another change is students are now able to provide their own information on

The SAI will focus less on the family’s cash flow and more on the family’s overall wealth. Two changes could make a big difference to current students’ eligibility for financial aid, which could result in a significant reduction in the amount of assistance they receive. For one, the SAI doesn’t consider the number of students a family has attending college. The second change is that farms and small businesses, previously excluded as assets, must now be reported. “We encourage students who see a change to their eligibility to get in contact with the financial aid office at their school right away so they can explore options to assist them,” Lohr says.

Schools will try to make up the difference where they can. Some even offer scholarships specifically to students affected by the changes.

Repaying Student Loans

Starting in March 2020, student loans were deferred and no interest was accrued. That’s all expected to end August 31, with interest beginning to accrue on September 1 and payments due beginning in October.

Since repayment has been deferred so many times over the last few years, this could catch some people by surprise. For those who struggle to repay their loans, Thrum suggests contacting the servicer to make them aware of the situation and explore options to stay out of default. It’s a good idea in general for students who must begin repaying their loans to contact their servicer and provide them with a current address. “If they can’t contact you, eventually you’ll default on your loan,” Thum says. “That’s not good.”

Proactive Measures

So what can current students and college applicants do while they wait for the 2024–25 FAFSA to become available?

Mary Beth Petrie, vice president for enrollment management with DePauw University, says this generation of students is particularly motivated to move ahead in the process of applying to college. She encourages students to put together a broad list of potential schools without letting the anticipated cost of tuition limit them. Then, they should reach out to the institutions on their list and ask the admissions offices and financial aid offices if they can get an estimate on their financial assistance in advance of the upcoming FAFSA. Finally, they should get to know the admissions and financial aid officers at the colleges to which they’re applying. “When they know someone is in their corner, and they know who that person is, it can make the process less stressful,” Petrie says.

Riney suggests students and families watch Department of Education videos coming out this summer. The series will go over the features of the 2024–25 FAFSA and direct students and families on how to prepare for the new forms.

“Once the FAFSA is available, apply early,” Thum says. “January is the time to apply. Right now, you don’t know how it’s going to impact you. So the earlier you apply, the better.” He adds that current students who see that their eligibility amount has changed substantially from the previous year should contact their school to review it.

Lohr emphasizes the importance of keeping track of financial aid deadlines, staying connected with the school, and asking questions, particularly for families who have filled out the form before. “The experience is going to be a little bit different,” he says.

And take advantage of available resources. DePauw, like other schools, is planning activities, events, and webinars to help families navigate the changes and the new process of completing the FAFSA.

“I want students and families to know that we’re going to be right there with them,” Petrie says. “And we’re going to be helping them all along the way.”