The FAFSA Simplification Act: What It Means for Your Student Financial Aid Needs

Director of Operations
Financial Planning Associate

I have some good news to share regarding student financial aid. Whether you’re planning now or considering applying for it in the future, I think this information could help you.

Navigating the financial aid process will be easier for students and families with the new FAFSA (Free Application for Federal Student Aid) Simplification Act, which streamlines applications and increases access to financial aid.

You can review the changes in detail here, but a few I’d like to call out for our clients include:

Simpler Application: Starting with the 2024-2025 school year, there will be fewer questions on the form, making it easier and faster to complete.
Student Aid Index (SAI): Provides a more accurate reflection of a student's financial need.
Simplified Income Assessment: The calculation now uses tax information directly from the IRS, minimizing the need for applicants to input financial data manually.
Family Contribution and Size Considerations: Adjustments are made to how family size and number of family members in college are factored into aid calculations.
Automatic Eligibility for Maximum Pell Grants: Federal Pell Grant eligibility has expanded to more students. And certain applicants, such as those receiving means-tested federal benefits, are automatically considered for Maximum Pell Grants.

Here are some important deadlines to keep in mind:

Federal Deadline: The FAFSA form for the 2024-2025 academic year is open and must be submitted by June 30, 2025.
College Deadlines: Many colleges have their own FAFSA deadlines, which may be earlier than the federal deadline. Be sure to check with each school your student is applying to.
State Deadlines: Each state has its own deadline for state financial aid, which can be much earlier than the federal deadline. You can check specific state deadlines here.

Finally, there are a few other considerations I think are helpful:

Fill out the FAFSA form (access it here) as soon as possible to help your student maximize their financial aid opportunities. Some colleges require applicants to submit a FAFSA form to be considered for merit scholarships. Even if you don’t think you’d qualify for need-based aid, there’s still a chance that you could be eligible for merit scholarships.
Since a family’s financial circumstance may change due to unforeseen events, you may want to apply for financial aid down the road. However, many colleges won’t consider you for financial aid in the future if you haven’t submitted a FAFSA form in the past.
By submitting your FAFSA form, you have nothing to lose and possibly something to gain. The truth is most students qualify for some sort of financial aid, even those considered to be in upper-middle class families.

Education funding and planning advice is complementary for our clients, and I’d be very pleased to explore options with you. If you have questions about any of this, setting up an account with The Millstone Evans Group, and/or want to set up time to talk, please contact me.

For more on education funding and planning, please check out my previous blog posts 529 Plans How You Can and Can’t Use Them, Four Things I Wish I Knew Before Applying to College and Financial Aid 101: What Families Need to Know Before They Apply.

On a semi-regular basis, I’ll be sharing more blog posts on education savings plans and how families can evaluate options and plan ahead for tuition costs.

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