In a recent government meeting, officials discussed the upcoming changes to the Free Application for Federal Student Aid (FAFSA) process, which has faced significant challenges in the past year. The FAFSA for the 2025-2026 academic year is expected to open in December, a delay from the usual October launch. The Department of Education is currently conducting beta testing with select schools and students to ensure a smoother rollout.
Key changes to the FAFSA include a reduction in the number of questions, aimed at simplifying the application process. Notably, students will now have their own section to complete and must invite their parents to fill out their respective sections. This change addresses previous issues where applications were incomplete due to missing signatures or invitations.
The term \"Expected Family Contribution\" has been replaced with \"Student Aid Index\" (SAI), and the terminology surrounding financial contributors has also shifted. Parents, students, and spouses are now collectively referred to as contributors, emphasizing the need for both student and parent signatures for successful submission.
Another significant update is the introduction of the FADDX, or direct data exchange, which allows the Department of Education to retrieve tax information directly from the IRS, provided the applicant gives permission. Failure to grant this permission could result in the application being put on hold.
Additionally, the criteria for determining which parent is considered for financial support have changed. The parent who provides the greater portion of financial support in the 12 months prior to the FAFSA submission will be the one used in the application. This adjustment aims to clarify parental roles in the financial aid process.
As the state grant deadline approaches on May 1, officials noted that this date may be subject to change depending on the FAFSA rollout. The meeting underscored the importance of completing the FAFSA annually, as changes in income can affect eligibility for federal funds. Students are advised to contact their schools for assistance with any changes in their financial circumstances rather than attempting to modify their FAFSA independently.