2024-25 FAFSA Updates and FAQs

FAFSA® Simplification Act: On Dec. 27, 2020, Congress passed the Consolidated Appropriations Act. The law includes provisions that amend the Fostering Undergraduate Talent by Unlocking Resources for Education (FUTURE) Act and includes the FAFSA Simplification Act—a sweeping redesign of the processes and systems used to award federal student aid. Specifically, the law makes it easier for students and families to complete and submit the Free Application for Federal Student Aid (FAFSA®) form and expands access to federal student aid.

Changes to the 2024-25 FAFSA

• The number of questions on the form was reduced from 108 to 46. The form is dynamic, some students won’t even be presented with all 46 questions. 
• The new form will allow for a much larger percentage of students and parents to have their financial information transferred from the IRS directly into the FAFSA.
• Federal Pell Grant eligibility is expanded to more students and will link eligibility to family size.

• After submitting the 2024-25 FAFSA, students will receive a confirmation email from the US Department of Education (DOE) that includes their 2024-25 FAFSA submission date, their estimated Student Aid Index (SAI), and an estimated Federal Pell Grant (if applicable). The DOE is currently transmitting 2024-25 FAFSA applications to schools and is addressing any lingering processing hiccups.   RIT is now generating confirmed financial aid offers for all 2024-25 incoming students with a valid FAFSA and also for 2024-25 continuing students with a valid FAFSA who are enrolled in courses and/or co-op this summer.  Later this spring, RIT anticipates generating confirmed financial aid offers for 2024-25 continuing students with a valid FAFSA who are not enrolled in courses and/or co-op this summer.  
• The ability for students/contributors to make updates and corrections to their FAFSA forms began in mid April.  The DOE provides detailed information to partners, students, and families on how to correct the most common FAFSA form errors including missing signatures and selecting ‘yes’ to applying for unsubsidized loans only (Question 8).

Contributor is a new term introduced on the 2024-25 FAFSA form. It refers to anyone asked to provide information on a student’s FAFSA form:

• the student
• the student’s spouse (if applicable)
• a biological or adopted parent
• the parent’s spouse (stepparent).

Contributors will receive an email informing them that they’ve been identified by their student as a contributor, and will need to log in using their own account (FSA ID) to provide the required information on the student’s FAFSA.  If they don’t already have a FSA ID, they can request one on the studentaid.gov website.

A Contributor is NOT a grandparent, foster parent, legal guardian, brother or sister, aunt or uncle, even if they helped provide for or raise the student.

Family Size is replacing “Household Size” and this number will be based on the designated parent contributor listed on the FAFSA.

A Contributor on the FAFSA form doesn’t mean they are financially responsible for the student’s education costs.

The contributor would be the parent who provided the most financial support within the last 12 months of completing the FAFSA even if it is not the parent with whom the student primarily resides. If that primary parent is remarried, the income of that parent’s spouse (stepparent) will also be required. 

If the financial support amounts are exactly the same for each legal parent, then the tiebreaker question is, “which parent has greater assets when the FAFSA is being completed?” The parent with the greatest assets would be the contributor to the FAFSA.

The parent identified as the contributor is also known as the Parent of Record. 

The Department of Education has provided the following infographic as an additional resource to help identify the contributor for a student's FAFSA.

Providing consent and approval on the 2024–25 FAFSA is a requirement for federal student aid eligibility. When students and contributors provide consent and approval on the FAFSA form, they agree to

• Share their personally identifiable information provided on the form with the IRS
• Have their federal tax information transferred directly into the form
• Allow the U.S. Department of Education (DOE) to use the information to determine their eligibility for federal student aid
• Allow DOE to share their federal tax information with schools and state higher education agencies

A student and their contributor(s) would each need to create their own FSA ID/account. To create an FSA ID/account visit StudentAid.gov

An account is required to

• Fill out the FAFSA form online
• Complete other online forms (such as the Master Promissory Note) required to receive aid
• Review the federal student aid received

Review these instructions (PDF) on how to create a FSA ID/account without a Social Security Number.  (A Spanish version (PDF) is also available).

If a foreign tax return was or will be filed, use information from the foreign tax return to fill out the FAFSA. The following should be kept in mind when using a foreign tax return:

• A foreign tax return may not have an "Adjusted Gross Income" line item. Instead, use the equivalent line on the foreign tax return that reflects all wages, dividends, capital gains, business income, retirement distributions, and other income, minus any adjustments to that income.
• Convert all monetary units to U.S. dollars using the exchange rate published by the U.S. Federal Reserve. Use the exchange rate that is nearest to the date when first completing the FAFSA form.

Family farms and small business must be reported as assets. When required, families must now report the value of their small business or family farm. If the family farm includes the principal place of residence, applicants should determine the total net value of all farm assets and subtract the net value of their principal residence to determine the final value of their farm assets.

Parents of dependent students should report as parental assets only the value of college savings plans designated for the dependent student (not those designated for other children), regardless of whether the account holder is the parent or the dependent student.

Independent students should report education savings accounts as their own assets.

The US Department of Education (DOE) lists the necessary steps on its website.

An incomplete FAFSA will be deleted after 45 days of inactivity. A FAFSA cannot be considered submitted until all required contributors have completed, signed, and submitted their respective sections.

If you make a mistake when submitting your FAFSA form—for instance, if you submit your form without required contributor information or without your signature—don't worry. 

The US Department of Education (DOE) provides detailed information to partners, students, and families on how to correct the most common FAFSA form errors. The Federal Student Aid Information Center (FSAIC) can also offer assistance: 1-800-433-3243. 

A notable terminology update within the new FAFSA is the replacement of the term Expected Family Contribution (EFC) with the Student Aid Index (SAI). This name more accurately describes the number used to determine federal and institutional need based aid eligibility. Unlike the EFC, the SAI may be a negative number down to -1500 and the number in college is not part of the SAI calculation.

Important: Student aid eligibility is based on the following formula:

Cost of Attendance (COA) – Student Aid Index (SAI) – Other Financial Assistance (OFA) = Need

A negative SAI is treated the same as an SAI of zero when determining need. A negative SAI does not substantiate offering aid above the Cost of Attendance (COA).

Some students will automatically be awarded a Pell Grant. Families making less than 175% and single parents making less than 225% of the federal poverty level will see their students receive a maximum Federal Pell Grant award. Minimum Pell Grants will be guaranteed to students from households below 275%, 325%, 350%, or 400% of the poverty level, depending on household structure. Pell awards between the maximum and minimum amounts will be determined by SAI.

Yes.  While the FAFSA is not required for submission of the NY State TAP Grant application, it is required for the Higher Education Services Corporation (HESC) to ultimately process the TAP application. HESC verifies the information in the TAP application with the information submitted in the FAFSA.  For more information or help, contact HESC to schedule an appointment.

The Department of Education (DOE) is now accepting 2024-25 Parent PLUS loan applications.  We recommend parents submit their application after their undergraduate student has received their confirmed 2024-25 financial aid offer and they have reviewed the estimated amount due for their direct costs after gift aid and student loans.