FAFSA Simplification Brief for Campus Partners
“FAFSA simplification” refers to the combined impacts of several pieces of legislation passed since 2019. These laws, including the FUTURE Act and the Consolidated Appropriations Acts of 2021 and 2022, streamline the Free Application for Federal Student Aid (FAFSA) process and make significant changes to student eligibility for federal student aid.
These changes include:
Streamlining and simplifying the FAFSA — the application for federal, state, and in many cases, institutional financial
aid — by obtaining the applicant’s income information directly from the IRS, removing complex income questions, and
shortening the application.
Changes to Pell Grant eligibility criteria, including new automatic maximum/minimum Pell Grants based on federal
poverty guidelines.
Replacing the Expected Family Contribution (EFC) with the Student Aid Index (SAI), modifying the formula for calculating
it, and allowing a floor value of -1500.
Changes in treatment for multiple family members in college and small businesses/family farms in calculating student
aid eligibility.
New requirements for how institutions calculate food and housing allowances in the cost of attendance (COA).
Delayed release of the FAFSA for the 2024-25 award year.
The interconnected goals of these changes include simplifying the aid application process, increasing access to postsecondary education, and providing predictability and transparency for Pell Grant eligibility. The changes also aim to improve program integrity through better data accuracy.
