FAFSA Simplification Q&A

With a new “simplified” FAFSA, students and parents can expect to complete the FAFSA more efficiently in a shorter period of time.

The Fostering Undergraduate Talent by Unlocking Resources for Education Act (FUTURE Act) requires the Department of Education to access tax information held by the IRS pertaining to FAFSA applicants—and, where applicable, their parents and spouses—through a secure method: the FUTURE Act Direct Data Exchange (FA-DDX).

• Reference: FAFSA Simplification Act Changes for Implementation in 2024-25
• Law: PUBLIC LAW 116–91

The FAFSA Simplification Act represents a significant overhaul of the processes and systems used to award federal student aid starting with the 2024–25 award year. This includes the Free Application for Federal Student Aid (FAFSA®) form, need analysis, and many policies and procedures for schools that participate in federal student aid programs.

• Reference: What is the FAFSA Simplification Act?
• Law: PUBLIC LAW 116–260

A federal initiative aimed at bringing awareness of the FAFSA Simplification Act.

Watch the Better FAFSA® Better Future Overview video.

Changes include, but are not limited to, the following:

• Which parent completes the parental section of the FAFSA (in the cases of divorced/remarried parents for dependent students)
• Expected Family Contribution (EFC) will be replaced with Student Aid Index (SAI) when it comes to calculating aid eligibility
• Consent is required for Tax Data Transfers when it comes to contributors/students providing tax information on the FAFSA
• Student Aid Report will be replaced by the FAFSA Submission Summary
• Household size will be replaced by Family Size
• An alternative method of adding Federal Tax Information (FTI)

Federal Student Aid (FSA) defines contributors as “individuals, such as a parent or spouse, that may be required to provide information on an applicant’s FAFSA depending on the applicant’s dependency or marital status.”

Students with unusual circumstances are defined as:

A student for whom a financial aid administrator makes a documented determination of independence by reason of unusual circumstances and in which the student is unable to contact a parent or where contact of parents poses a risk to such student, which includes circumstances of –

• Human trafficking, as described in the Trafficking Victims Protection Act of (22 U.S.C. 7101 et seq.);
• Legally granted refugee or asylum status;
• Parental abandonment or estrangement; or
• Student or parental incarceration.