2024-2025 FAFSA Changes

The FAFSA Simplification Act & How It Affects You

The FAFSA Simplification Act was passed by Congress and represents a significant overhaul of the processes and systems used to award federal student aid. This includes the Free Application for Federal Student Aid (FAFSA) form, the need analysis that determines aid eligibility, changes in terminology, and many policies and procedures for schools that participate in federal student aid programs.

The goal of the FAFSA Simplification Act is to make it easier for students to apply for financial aid. The new FAFSA will require fewer questions about income and will rely on the Direct Data Exchange (DDE) with the IRS for completion of the FAFSA. Among other key changes, this legislation attempts to clarify the questions that will be asked and will aim to increase Federal Pell Grant eligibility.

Changes to the FAFSA Application

Some key changes include, but are not limited to:

• The 2024-2025 FAFSA will be delayed. The anticipated launch date of the 2024-2025 FAFSA will be sometime in December 2023 or early January 2024, instead of opening in October.
• The FAFSA application process will be streamlined and easier for students to complete. It will feature fewer questions, fewer requirements, and retrieve tax information using a more direct method.
• The FAFSA is introducing the new term contributor, which refers to anyone who is required to provide information on a student's FAFSA form, including the student, the student's spouse, a biological or adopted parent, or the parent's spouse. Being a contributor does not imply responsibility for the student's college cost.
• The Data Retrieval Tool (DRT) has been replaced with Federal Taxpayer Information (FTI).
• Students, spouses, parents, and stepparents will now need to provide their consent in the new Consent to Retrieve and Disclose Federal Tax Information section of the FAFSA for federal student aid eligibility. This consent will allow the IRS to share FTI through a Direct Data Exchange. If any party to the FAFSA form does not provide consent, submission of the form will still be allowed.
• Parents without a Social Security Number will be able to apply for an FSA ID. This will speed up FAFSA processing time as they’ll be able to submit the form online, rather than having to print, sign, and mail their application.

Changes to Calculating Your Eligibility

Students and families will see a different measure of their ability to pay for college, and they will experience a change in the methodology used to determine aid.

The U.S. Department of Education’s office of Federal Student Aid (FSA) is pleased to announce the release of a newly revised Federal Student Aid Estimator that now provides an estimate of the new Student Aid Index (SAI) and revised federal Pell Grant eligibility calculation.

The Shippensburg University Financial Aid Office is dedicated to providing timely updates to students, families, and our community. We'll continue to update this page as we receive more information from the Department of Education and Federal Student Aid.