FAFSA Simplification

Why are things changing?
On December 27, 2020, Congress passed the Consolidated Appropriations Act, which included the FAFSA Simplification Act—a major overhaul of the federal student aid process. This law aims to make applying for aid easier, more transparent, and fairer for students and families.

What’s happening?
The changes have been rolling out in phases since 2021–22, with full implementation in the 2024–25 award year. Here’s what’s new:

• Shorter FAFSA: The form is streamlined from 108 questions to about 36, making it faster and simpler to complete.
• New Terminology: Expected Family Contribution (EFC) is now the Student Aid Index (SAI), which can even be negative for students with the greatest need.
• Automatic IRS Data Transfer: Federal tax information will be imported directly from the IRS, reducing manual entry and errors.
• Expanded Pell Grant Access: More students will qualify automatically based on income and family size; incarcerated students regain eligibility.
• No More “Number in College” Factor: Aid eligibility no longer increases for families with multiple students in college.
• Other Updates:
  • Contributors (student, parent, spouse) must consent to share tax data.
  • Selective Service and drug conviction questions are removed.
  • FAFSA available in 11 languages.