Key FAFSA Changes

The Free Application for Federal Student Aid (FAFSA) 2024-25 opened on December 31, 2023. That year, the Department of Education made several changes in the FAFSA to make federal aid more accessible for students and families. The 2025-2026 FAFSA was opened to all students on November 21, 2024.

Remote video URL
Official "What's Changed" FAFSA Video from the Federal Student Aid YouTube page

Contributors, Consent and the IRS

  • The FAFSA requires consent to access IRS information
  • Consent is given by each contributor before signing the FAFSA
  • Contributors include the student, student’s spouse, and may include a parent and/or parent’s spouse
  • The FAFSA now uses the Federal Tax Information (FTI) to import IRS data
  • This replaces the IRS Data Retrieval Tool (DRT) used in the past

Formula for Federal Student Aid Eligibility

  • The Student Aid Index (SAI) is the measure of your financial need
  • SAI replaces the Estimated Family Contribution (EFC)
  • Assets, untaxed income and other factors affect the SAI differently than years prior

Pell Grant

  • Pell Grant now awarded proportionally based on 1 – 12 credits enrollment
  • Full, ¾, Half and LTHT enrollment statuses are no longer used
  • Student whose prior school closed may have some Lifetime Eligibility Usage (LEU) restored

Dependent vs Independent Students

  • Independent students typically do not provide parent information
  • Students under 24 may answer FAFSA questions to show they are “Provisionally Independent”
  • All appeals, forms and documentation must be completed to receive aid for each Provisionally Independent category:
    • Unaccompanied Homeless/At-Risk Youth (UHY)
      • Students who cannot live with a parent, and lack stable housing
      • At-risk youth include students staying with a friend or non-parent relative
    • Dependency Override
      • Self-supporting students who wish to appeal based on unusual circumstances other than inadequate housing
    • Parents refuse to complete the FAFSA
      • Students who confirm a parent’s refusal may receive Unsubsidized Loans Only

Other Changes

  • FAFSA form available in 11 most common languages
  • Selective Service registration no longer affects the FAFSA
  • Drug convictions no longer affect the FAFSA

What Is Not Changing?

These federal aid requirements, rights, and responsibilities have not changed or have had only minor updates:

  • The FAFSA remains required annually for federal aid consideration and is available to U.S. Citizens or Eligible Non-Citizens. How to apply for FAFSA (insert link to our how to apply page)
  • New questions in 2023-24 about the applicant's sex, race, and ethnicity have no effect on federal student aid eligibility and remain only for statistical purposes.
  • Dependency status questions to determine if your parents must provide their information remain the same.
  • FAFSA will still request tax information from two years ago. Families that had significant reduction in income due to extenuating circumstances can still request special circumstances review.
  • Federal Education Loans requirements remain the same.
  • Federal Aid Rights & Responsibilities also didn't change.
  • Academic Requirements for Federal Aid are still required to maintain eligibility. 
0