Changes to the FAFSA: What you need to know now
For the 2024-25 school year, students, families, colleges and universities saw the most significant revamping of the Free Application for Federal Student Aid form since the 1980s.
The rollout of the new simplified form was slow. Technical glitches caused a late opening of the form. This meant Federal Student aid was late getting their information to colleges, and students had to wait to get their financial aid offer letters.
The U.S. Government Accountability Office, has studied what happened. The Office of Federal Student Aid has a plan in motion to ensure that the 2025-26 application form for students starting college in the fall 2025 semester will benefit from lessons learned.
More Michigan students can now attend CMU tuition-free through the CMU Tuition Advantage program.
CMU Tuition Advantage program infoWhen will the FAFSA open for 2025-26?
The FAFSA form for 2025-26 is now open!
While it is traditional for the FAFSA form for first-time students to open on October 1 of the student’s senior year of high school, there were still a few bugs to be worked out. Beta tests were run to fix any glitches or problems with the form before it was released to the public. All has gone well, and the form is now ready for students hoping to start college in fall 2025.
What should I do before I start filling out the 2025-26 FAFSA form?
There are several steps you should take first:
- Follow “Federal Student Aid” on Instagram, Facebook, YouTube or X for important announcements. Or log on to the Federal Student Aid website for more information.
- Create your StudentAid.gov account, if you don’t already have one. You will need this to file your FAFSA. If you sign up for it now, you’ll be one step ahead.
- Read this page: Filling out the FAFSA Form. It’s a great source of information on documents you’ll need, how to determine if you’re a dependent student and whether you’ll need your parents to file their information.
- Know the school codes that you want your FAFSA information sent to. Central Michigan University’s code is 002243.
What are the changes to the FAFSA form?
The good news is that the FAFSA form really has been simplified. For most people, the old form was more than 100 questions. Now it’s down to 36 or even 18, depending on your circumstances.
The new system allows the FAFSA to pull information directly from your income tax return. You don’t have to go hunting for your past returns anymore. You just need to give your consent for the transfer of data.
This interface between the simplified FAFSA and the Internal Revenue Service means your private information must be protected. When you fill out the FAFSA, you’ll be directed to a form to give your consent and create an FSA ID, if you don’t already have one.
Changes to your family contribution
The new Student Aid Index
A major goal of the FAFSA Simplification Act is to make the amount of aid a student is eligible for more transparent and predictable. In the past, the FAFSA determined aid using the Estimated Family Contribution (EFC). It was a complicated process even for financial aid specialists. Families often had no idea how much they could receive until they got their financial aid offer from the college.
The new Student Aid Index (SAI) is streamlined and better defined. Under certain circumstances, low-income students can be eligible for need-based aid using only the family’s adjusted gross income taken from their income tax return. The new SAI streamlines procedures for students with more complicated income sources as well.
Families with more than one member in college
Under the old Estimated Family Contribution system, if you had multiple family members in college at the same time, your EFC was split between them. Under the new Student Aid Index, the FAFSA doesn't consider the number of family members in college in its calculations.
For example and using some very simplified numbers: Under the old FAFSA, if your EFC was $3,000 and you had three eligible family members enrolled in college at the same time, each enrolled student could have an EFC of $1,000. Now in the new simplified FAFSA, each of the three will have an SAI of $3,000.
Changes to Pell Grants
“The federal Pell Grant program is the single largest source of federal grant aid supporting postsecondary education students,” according to The Congressional Research Service (August 2022). These grants are need-based, and you don’t have to pay them back. Your FAFSA form determines your Pell Grant amount.
Pell Grants will now be calculated using the SAI or under certain circumstances, your gross Adjusted Gross Income (AGI) from your tax return. This should simplify eligibility.
The SAI and AGI levels for aid have also been adjusted and should result in more students qualifying for more Pell Grant money. Since the new form is shorter and simpler, there’s no excuse not to apply. In fact, it’s always best to file your FAFSA each year whether you think you qualify or not.
Changes for special or unusual circumstances
Under the new simplified FAFSA, financial aid administrators at colleges must let families know that students who apply for aid can pursue adjustments based on their family and financial circumstances. This process is known as professional judgement. In certain circumstances, it can extend to declared disasters, emergencies or economic downturns.
Changes can mean delays, so file early
As the new system opens again, there may be a few bumps in the beginning. Filing early is the best way to have the time you need to get into the new system and submit your FAFSA.
The new simplified FAFSA form will be shorter and require much less effort on your part to fill out. But, if at any point you have questions, the financial aid administrators at Central Michigan University are ready with answers. Reach them at 989-774-3674 or financialaid@cmich.edu. You can learn more about the FAFSA and financial aid here.
If you want the full information currently available on the FAFSA Simplification Act, check out the Congressional Research Service report on The FAFSA Simplification Act.