By MorraLee Keller, Senior Director of Strategic Programming
Reading time: Seven minutes
The annual Federal Student Aid (FSA) Conference was held this week and provided us with a preview of the FAFSA simplification process. The National College Attainment Network (NCAN) gathered information from the recorded sessions that focused
on the upcoming changes to the FAFSA and FAFSA process. We encourage you to check out the conference web site and watch the recorded videos or download the presentations that are of interest
to you.
Below, we've grouped highlights from various sessions that focus on similar topics. Richard Cordray, Chief Operating Officer of FSA, indicated in his opening remarks that FAFSA Simplification remains on track for next year. The effort to implement the
FAFSA related legislation is a massive undertaking with many moving parts. NCAN continues to collaborate with FSA as they work through a complete overhaul of the form and the system to process it.
Cybersecurity and Web Enhancements
As you know when setting up an FSA ID since July 10, 2022, a multi-factor authentication (MFA) process was added. This gives students and
parents multiple ways to complete the authentication: texts, emails, or an authentication app. This new process helps the Department of Education increase their cybersecurity for those wishing to access the StudentAid.gov website. MFA will be introduced
on a rolling basis to all current FSA ID owners over the next several months and will become a standard part of logging in to any area of the website-including access to the FAFSA form.
FSA touted over 100 new enhancements to the website
and noted the new employer search feature when securing pubic service loan forgiveness (PSLF) eligibility. A Google search feature has also been added to the top of the FAFSA form pages. Aiden (the FSA chatbot) has also been enhanced to provide more
feedback on questions beyond the FAFSA.
New Jargon to Learn
Some new jargon was introduced at the conference, while others were phased out, or "forgotten".
AERA (Applicants Exempt from Reporting Assets): Those applicants who meet the criteria provided that exempts them from reporting the value of assets. Forget: SNT (Simplified Needs Test)
BFBF (Better FAFSA Better Future): The slogan being used to refer to the new process and will be used to highlight new information on the FSA website. Let’s hope the new FAFSA becomes our BFF.
Contributors: The new word that will be used for anyone who is required to provided information on a FAFSA. Forget: Using the word "parent" or "student" to describe whose information you still need to collect.
FADDX (Financial Aid Direct Data Exchange): The new name for the process of bringing over applicant/parent information from the IRS. Forget: IRS DRT.
Family size: Will be a number from the IRS related to the number of exemptions claimed on the federal tax returns. (Note: There will be an option to change that number if it no longer reflects the accurate family size). Forget: Household size
FPS (FAFSA Processing System): The new name for the platform processing the forms. Forget: CPS (Central Processing System) is being retired.
FTI (Federal Tax Information): All FTI transferred will be encrypted to the applicant but made available to the institutions. There are several additional restrictions related to sharing FTI which will require us all to learn
more about those. In general, FTI cannot be redisclosed. Forget: Seeing any income information on SARs for most applicants.
SAI (Student Aid Index): The calculated result of running the federal methodology formula and used to award federal aid (may be used to calculate Pell Grants in the Min/Max Pell determination is not the best for the student). Forget: EFC (Expected Family Contribution).
FAFSA Process
Every person providing information on the form will need to grant “consent” to have their information transferred from the IRS. Parents and students will be required to grant consent even in cases of non-filers, those who file foreign tax returns,
undocumented parents who do not file, etc. If someone does not grant consent, they will be given the opportunity to complete the form through a manual path. However, no SAI will be calculated. FAA’s will not be allowed to submit signatures as
a correction. Parent(s), student spouses, and/or students may be required to log into the FAFSA and grant consent for the form to be processed.
Each person contributing information on the form will need to have an FSA ID. This may require one for both parents of a dependent student if their tax filing status is "Married Filing Separately", they are unmarried parents living together, or other
situations that would require both parents to provide their information separately. If a student is married and the student and spouse filed separately, both will need an FSA ID to login and complete the FAFSA.
Every person will need an FSA ID to access the FAFSA. There will be a process set up for those who do not have social security numbers to obtain an FSA ID for logging in and signature purposes. The FSA ID will need to be secured prior
to attempting to log-in.
The “save” key will be eliminated. With every person needing an FSA ID to log-in, there is no longer a need for this process.
The Department of Homeland Security will no longer execute a secondary match process. The ISIR will be passed on to the institution(s) so they can begin to immediately gather the required documentation.
The SAI formula does not contain a factor that divides the SAI by the number of people in the family in college. The question will remain on the form but will have no influence in the SAI calculation. Families with multiple people in college this
year will likely see an increased SAI compared to the EFC this year.
FAFSA Form
Role-based process will be critical. No role will see the questions for the other role(s) without using the FSA ID to log into that section.
The vast majority of income questions will be provided through the FADDX process. Only select categories of people will be given a manual path to enter financial data (i.e., a separated parent).
Institutions will be required to submit student work-study earnings beginning for 2022 into the COD system so that the amount earned can be subtracted from earnings since those allowance questions have been deleted from the form.
The Department of Education indicated that they should be releasing all the FAFSA data elements to be collected by the end of 2022.
For those applicants required to answer the asset questions, business and residential farm net worth values are no longer exempt. Applicants/parents/spouses will need to determine net worth of those assets to report. This may very likely result in
a higher SAI than the previous year EFC even if there was no/minimal change to income.
Independent students will not be given any opportunity to provide parent information for eligibility for aid programs that may require it.
Parents one and two will no longer be used to reference those who need to contribute information. Parent and Parent Spouse will be used as monikers. When collecting parent demographic information, the data elements are being expanded. The form will
collect full name, full mailing address, email address and phone number.
The demographic survey questions used this year as a required survey at the end of the 2023-24 FAFSA will become standard FAFSA questions. Student will maintain the option to not report data for these questions.
Child support received will be collected in the asset section of the form. Therefore, only applicants required to provide assets will need to report child support received.
Miscellaneous Considerations
Verification groups one, four, and five will remain for 2024-25 processing. However, only “random” selection will be used for the year. Data will be collected and analyzed to determine any modifications that will be made for 2025-26.
There will be two ways to determine Pell eligibility - one using the Federal Poverty Table, family size, and make-up and state of residence or the calculated SAI. Students will receive the higher Pell amount from the min/max Pell poverty tables or
the SAI calculation. The 2022 Federal Poverty Table will be used for the 2024-25 FAFSA. You can find the tables here.
This article only contains the tip of the iceberg of changes coming. NCAN will work closely with FSA to secure training materials and resources in 2023. We are also currently developing a training plan for bringing our members all the necessary information
and changes to assist students with filing next year. Stay tuned for much more information in 2023.
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