FAFSA 2024-25 Rundown -

info@teshley.com December 3, 2022 Image 3 Financial Aid High School Seniors | College Students Paying for College

The 2024-25 FAFSA

UPDATE: 12/07/23

Key FAFSA Changes Not Previously Reported

With the launch of the 2024-25 FAFSA application, students have control.
The student must initiate the application process.
If parent/guardian information is required, each parent must be invited as a contributor.
Any application that is dormant for 45 days will be deleted. The student will be required to start from the beginning.

We’ve added three new reference links to the end of this post.

This just in on 11/15/23

The improved FAFSA form will be available for students and parents by Dec. 31, 2023. Students who complete the form will receive a confirmation and see their estimated student aid eligibility.

If you’ve had trouble keeping up with the changes to college financial aid, here’s a FAFSA 2024-25 rundown.

We’ve compiled a list of the most pertinent changes affecting students and families. We examined many of them in previous videos and posts but included a few previously unreferenced revisions in this post.

Some of the changes were phased in over the last two years. The ones specific to the 2024-25 school year are noted.

***UPDATE: The U.S. Department of Education announced that the FAFSA application for the 2024-25 school year will be released in December – not October 1.***

Institutional Preparation is Underway

On September 29, 2023, a prototype of the 2024-25 FAFSA was released to FSA Partners (for college financial aid administrators). It has limited functionality, but it signals some progress is being made.

Additional information and preparation continue for financial aid administrators, but as of 11/03/23, there is no update on when the new application will be released to the public.

It is unclear what impact a November government shutdown will have on the release and processing of FAFSA applications, but a negative impact is likely.

McCarthy’s Ouster Raises Likelihood of a Government Shutdown (msn.com)

BONUS: For background information and an in-depth understanding of the new FAFSA, view our “How Will the Changes to FAFSA Impact You?” video on YouTube. College financial expert, Robert Falcon founder of College Funding Solutions provides details and guidance for parents/students.

2024-25 FAFSA The Changes Families Need to Know About

Click to view on YouTube.

Let’s start with the clear-cut and not budget busting.

Significantly Fewer Questions

The number of questions has dropped to 38 for FAFSA 2024-25. That’s a significant change from the 108 questions on FAFSA 2023-24.

The maximum Pell Grant increased from $6,495 to $6,895 for 2022. For the 2023-24 school year, the maximum grant is $7,395. The proposed budget for 2024-25, if approved, would raise the maximum to $8,215.

The Expected Family Contribution (EFC) has been changed to the Student Aid Index (SAI). This is a name change that means little. It is the cost calculations that will affect families.

Selective Service Question Removed

Male students no longer have to indicate if they registered with the Selective Service System. Technically that question was removed from the previous version of the application.

Past Drug Conviction Not an Impediment to Aid

A past drug conviction no longer prohibits a student from receiving Title IV funds, i.e., these students will be eligible to receive many forms of student aid.

Allowing youthful offenders to receive aid is viewed by some as a negative, but we disagree.

SULA Repealed

The Subsidized Usage Limit Allowance has been repealed as of July 2021. This provides additional years for students who require more time to complete their degrees with underwritten interest on their loans.

No FAFSA 2024-25 rundown would be complete without including the not-so-good news for many families.

Family Farms & Small Businesses Must Be Reported

FAFSA 2023-24 required families to include small businesses (with less than 100 employees) and farms (other than primary residence) assets. Prior to this year, families were permitted to exclude these assets.

The 2024-25 FAFSA has more stringent asset reporting requirements.

Tuition Reduction for Multiple Students Eliminated

For the 2024-25 school year, families with two or more students enrolled in college simultaneously will no longer receive a “discount.” Historically, the amount a family paid was divided by the number of students currently enrolled in college. That has been eliminated. Refer to Example #2 on page #3 in the FAFSA Simplification Act Case Studies under “Additional Reading” links.

This change is on the federal level. It does not reflect state aid policy unless its formula is tied to the national. Consult your state’s higher education department to learn what will happen on the state level in 2024-25 and beyond.

Change to Filing Parent for Divorced/Separated Families

Divorced or separated parents will see a change in the required filer. Starting in 2024-25, the parent who provides the most financial support will file the FAFSA, regardless of which parent the student resides with.

This may or may not impact a student’s aid package. If the parent providing the bulk of financial support earns significantly more than the custodial parent, expect to pay more out-of-pocket.

The Brookings Institute has a tool you can use to approximate how the changes may impact your family.

The complication with FAFSA simplification | Brookings (Results are not definitive.)

Full Impact Unclear

The class of 2028 will be the first to experience all of the changes to FAFSA. How states, colleges, and universities respond may determine the size of that class.

College enrollments were on the decline pre-pandemic. The pace of that decline has accelerated. With the looming changes to FAFSA that will negatively impact many families, it remains to be seen how much more deterioration there will be or if enrollments will stabilize.