By MorraLee Keller, Senior Director of Strategic Programming
Reading time: Four minutes
Note: Since this article was originally published, FSA has announced that the Better FAFSA will open by December 31, 2023.
Last week, we shared the news with National College Attainment Network (NCAN) members that the new Better Free
Application for Federal Student Aid (FAFSA) may not open on October 1, 2023, and recommended that you plan now for this contingency (note: FSA has since announced that the Better FAFSA will open by December 31, 2023). Today, here is our top 10 list of changes coming to the FAFSA’s questions and processes that also warrant our attention
and planning discussions:
FSA ID: EVERYONE who wants to put information into an online FAFSA will need an FSA ID to access the form. FSA has indicated they are creating a process for people without social security numbers to create an ID and be able to access
the FAFSA. An FSA ID will need to be created and confirmed prior to accessing a FAFSA.
FSA ID Two-Step Verification: EVERYONE who attempts to use their FSA ID to log into the 2024-25 FAFSA will go through a multi-factor authentication process. People should take advantage of every type of verification available (email,
text, and authentication apps) when setting up the FSA ID so that completing the two-step verification will be easier. It also means that student and their parents or spouses will need to be in contact if they are trying to help complete information
for other roles.
Number in College: The Student Aid Index (SAI) formula will no longer be divided by the number in college. Students with multiple siblings in college have the potential to have a much larger SAI with no change in income.
Family Size: The new name for household size is family size and will be determined by the number of exemptions claimed on the federal tax returns. Because family situations can change, there will be a question that allows the student
to modify the family size to reflect the current number.
Number of Colleges Listed on the FAFSA: Students will now be able to list up to 20 colleges on the FAFSA which should facilitate students applying to more than 10 colleges.
Role-based Form: Each person/role on the FAFSA will only be able to see questions related to their role. When a student logs in, they will only be able to see questions that should be answered by the student. The parent or spouse
will need to log in to see the questions related to their role. Once the appropriate people have completed the questions for their role, the FAFSA will be able to be submitted.
Assets: Families with an adjusted gross income of greater than $60,000 (up from $50,000) or those who filed certain schedules will be required to submit assets. There are no exemptions for reporting net business or family farm value.
Current FAFSA filers may see an increase in their SAI due to having to report all business or farm net values with no change in income.
Negative SAI: The new SAI formula may result in a student receiving a negative SAI down to -1500. This SAI will be assigned to all non-filer families. It will not result in a larger Pell Grant than a zero SAI and colleges will not
be permitted to award students more than the cost of attendance.
Pell Grant Eligibility: Pell Grant eligibility will continue to be calculated based on the SAI but will also be calculated using Federal Poverty Tables and the family make-up, size, and income. If the student meets the Poverty Table
guidelines for the maximum or minimum Pell award and the SAI calculation, the student will be awarded the highest Pell Grant amount determined by the two separate formulas.
Identifying Those Who Will Contribute Information (Roles): If a student begins the FAFSA, they will be asked to identify the parent(s) or spouse who will be contributing financial information on the form. It will be critical that
they enter those person(s) information as it appears in their FSA ID so that it will match and they be able to log-in and access the student’s FAFSA.
In January, NCAN offered webinars that reviewed these changes, one of which was recorded and is available here for members to view. Stay tuned as we continue to report critical information
to our members as quickly as we have it. NCAN is developing a suite of Better FAFSA training and awareness resources that we will announce next month for rollout during 2023. You can also bookmark FSA’s Better FAFSA information page to see their resources and most recent updates and sign up for FSA’s partner emails focused on informing school counselors, college
access organization staff, and other student mentors.
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