FAFSA Update: What You Need To Know About Eligibility for Financial Aid

FAFSA Update FAFSA Addressing Challenges Guidance for Parents students

By Jackelyn Cornejo , Parent Herald Apr 17, 07:11 am

Photo: (Photo : Paul Morigi/Getty Images for We The 45 Million )

Towards the end of 2023, the federal government declared its intention to modify the Free Application for Federal Student Aid (FAFSA) before the 2024-2025 school year, in response to an order conveyed by Congress in 2020.

However, despite the expectation, the rollout of the modified form has been run down by challenges, causing disappointment for colleges, administrators, and parents alike.

What Is FAFSA?

The FAFSA is an electronic application used by educational institutions, in evolving colleges, universities, and sometimes private scholarship programs, to assess a student's qualification for federal monetary aid, such as grants, loans, scholarships, and work-study opportunities. Many states also employ the FAFSA to identify qualifications for state financial aid.

Students must apply for a FAFSA for each academic year to be considered for financial assistance. Previously, the FAFSA requires students and parents to answer various questions to identify aid qualifications.

The updated version has streamlined the process to contain fewer than 50 questions, expanded the number of colleges students can list to 20, and enhanced convenience by offering the form in 11 languages instead of just English and Spanish.

To finish the FAFSA application, learners and parents must allow the IRS to import appropriate financial data into the form.

Moreover, the improved FAFSA initiates the Student Aid Index (SAI) in place of the Expected Family Contribution. This index employs a distinct formula to assess a family's qualifications for assistance, aiming to develop access to financial aid and containing those who are not compelled to file federal income taxes.

Challenges Encountered by Students and Parents

Unlike former years when FAFSA applications were unlocked in October, the launch of the modified form was postponed until January, affecting the timeline for students to get monetary assistance offers and make choices about college admission.

Technical concerns during the application procedure have further heightened disappointment, resulting in an important less in applications compared to previous years.

The Department of Education advises all prospective college students to complete a FAFSA, regardless of their perceived eligibility for financial aid, and to seek scholarships early in their high school careers.

Parents can utilize online resources such as the College Scorecard and the Federal Student Aid Estimator to estimate future financial obligations and potential aid opportunities for their child.

Additionally, parents may investigate state-sponsored college savings plans and other monetary assistance programs possible such as prepaid tuition plans.

The due date to comply with a FAFSA for the school year 2024-2025 is 11:59 p.m. CT on June 30, 2025, and modifications or updates can be made until September 14, 2025.

However, individual states, colleges, and universities may have their due dates, which can be seen on the StudentAid.gov website.

What To Anticipate After Submitting Your FAFSA Form

After submitting your FAFSA form, the Office of Federal Student Aid reviews your information and shares it with listed schools by mid-March.

Due to a delayed rollout, schools receive this information in March, affecting incoming first-year students awaiting financial aid offers. Bentley advises staying updated on school communications and checking financial aid websites. You'll receive an email confirmation of FAFSA processing and may need to take further action.

A FAFSA Submission Summary, including a Student Aid Index, follows, used by schools to determine aid eligibility. Colleges may request additional documentation. Students await award notifications for financial aid details, as stated by Keller.