By Reese Meister
Changes to the 2024-2025 Free Application for Federal Student Aid (FAFSA) have delayed the release of the form to around Dec. 31 and may affect the distribution of financial aid. The FAFSA is normally made available in early October, allowing college students to complete an application for a chance to receive federal financial aid in the form of loans, work study or grants for the upcoming school year.
This year’s delay pushes the release date back by about three months, and the shorter application period may reduce the number of students who apply for aid through the FAFSA. However, to simplify the application and improve ease of completion, Congress passed the FAFSA Simplification Act as part of the Consolidated Appropriations Act in 2021.
Thousands of students have elected not to complete the application because of the detailed, time-consuming questions in past years, so Congress aims for their recent act to mitigate this issue. Changes to the FAFSA include the reduction of questions to fewer than half of the previous number, which was over 100, and an option for the IRS to automatically input data with permission of the parent, guardian or other contributor to the student.
In terms of the aid available, eligibility to receive the maximum Pell Grant of $7395 will extend to an estimated additional 1.5 million students, and some restrictions based on students’ drug-related offenses have been eliminated. This results from an increase in the family income threshold needed to qualify. Additionally, this year’s application will not consider whether the student has another family member currently paying for college, eliminating the “sibling discount.”
As part of the FAFSA Simplification Act, Congress ordered an adjustment to the percentage of incomes protected, or not considered, in calculations of what applicants can afford, including increases of 20% for parents, 35% for dependent students and 60% for students with children. They also planned to account for recent inflation; however, the U.S. Department of Education did not make these adjustments because of a focus on other required changes, creating potential for students to receive thousands of dollars fewer in aid than they qualify for in reality.
The calculations are currently based on the 2020 Consumer Price Index, ignoring the effects of the most recent years of inflation. This means that thousands of dollars of income that should not be considered will raise an applicant’s Student Aid Index, decreasing the amount of aid offered. For some, this could be the difference between qualifying for a grant, loan or scholarship or missing out on aid.
The Education Department has commented that the 2025-2026 application will be adjusted to accurately reflect inflation and what families can afford, but they will not adjust this year’s as a result of the already delayed schedule.
Some worry that the delay will prompt a surge of applications once it opens, creating further technical complications with the process. Others express concern of delays in college financial aid departments receiving and processing the information, leading to the later release of offers to students.
Regardless of changes to this year’s FAFSA, students should still complete the application early to ensure eligibility for programs with limited funding and provide themselves with the best chance of receiving assistance.
