Why is FAFSA important?

The Free Application for Federal Student Aid (FAFSA) is a crucial first step in gaining financial assistance to pay for your college education.  Submitting a completed FAFSA form is the key that will open doors for you to obtain federal financial aid, grants, loans, and other assistance to help you and your family afford tuition, fees, room and board, and other college expenses. 

Why FAFSA Matters?

FAFSA is an important tool to determine how much assistance you and your family need to pay for college. This can be in the form of federal student aid, like Pell Grants, or subsidized loans. Providing accurate and complete information through your FAFSA form allows you to receive help with the cost of tuition, books, and other college expenses. It ensures that your path to a college education is not blocked by financial barriers.

FAFSA Simplified

The FAFSA Simplification Initiative seeks to streamline applying for aid to make the process more accessible and less intimidating for applicants. This is done through a reduction in the number of questions, as well as clearer instructions, and employing online technology to make it all more user-friendly.

Before you begin your FAFSA form

You should gather all the financial documents you and your family will need, like recent tax returns. You also need to create a Federal Student Aid (FSA) identification. You should carefully follow each of the steps outlined on the FAFSA website. Completing and submitting a form early will increase your chances of receiving as much federal aid as possible.

For more information and to start the FAFSA application, you can visit the official website:
FAFSA – Free Application for Federal Student Aid.

Have you submitted your Free Application for Federal Student Aid (FAFSA)?
The Elms College code is 002140

Update 2/29/2024:
In response to the FAFSA delays, we are actively implementing strategies to support our incoming students and families during this time:
• Early Financial Aid Estimates: We are providing early estimates of financial aid to cohorts of students to help them make informed decisions sooner.
• Extended FAFSA Deadline: We have extended our FAFSA early filer award deadline, encouraging students to complete their forms promptly.

FAFSA Simplification Act: Overview

Overview of Upcoming Financial Aid Changes

Why the Change?

In the 2020 Cares Act . . . Simplified “Better” FAFSA

“FAFSA was too long and complicated”

“Any time we can do something that important to help 20 million of the most deserving families in the country and we have substantial agreement on it, we should do it.”  – From Senator Alexander, 9/18/2020

This change is meant to provide access to many more students.  December 2023. By Law: FAFSA will be released before midnight on Dec 31.

This impacts new students entering Fall 2024 and those currently enrolled in college.

Summary of Changes

A streamlined form FAFSA form will be shortened: from 100+ questions to fewer than 36 questions, also will be available in 11 languages FAFSA will rely almost exclusively on tax return information:
A new measure of families’ financial responsibility Student Aid Index (SAI) will replace the EFCFamilies can have negative SAI as low as -$1,500Farm and small-business assets will be factored into the SAIThe SAI calculation will not account for siblings in collegePell Grant eligibility will also be based on family income and household size
Expanded Pell eligibility Expected 10% to 25% increase in Pell recipientsPell grant current maximum value is $6,895

Impact on Pell Students

Past FAFSA

  • Pell Grant Students  2022-23
  • 6.9 million in the US
  • Max value:  $6895

Simplified FAFSA

  • Extends Pell Grant eligibility to more than 500,000 students
  • est. 7.4 million in the US
  • Max Value next year: $7395

The FAFSA Form

Past FAFSA

  • 100+questions on FAFSA

Simplified FAFSA

  • For most students, fewer than 36 questions on the FAFSA
  • Available in 11 languages

Federal Student Aid (FSA) ID

Past FAFSA

  • Citizens and Permanent Residents apply for the FSA ID and use that to sign the FAFSA and any other FA docs
  • Undocumented parents sign a printed form at the end of the FAFSA and it is mailed into the processor


Simplified FAFSA

  • All apply for the FSA ID and undocumented parents use their Individual Taxpayer Identification Number (ITIN) numbers. This is not shared with the United Immigration and Naturalization Service (INS)
  • ITIN take a long time to obtain, so parents need to apply ASAP
  • Parents without ITIN will have to supply more info, similar to a credit check

Filling Out the FAFSA

Past FAFSA

  • Student and Custodial Parent fill out the FAFSA, all at one time
  • At the end, Parent had to have an FSA ID to sign FAFSA

Simplified FAFSA

  • Must have FSA ID to start
  • Student fills out their piece, then the parent gets an invitation to fill out their part

Simplified FAFSA: Filling it out

  • Each “contributor” fills out the FAFSA, and each must have a FSA ID to access each section
  • A “Parent Wizard” will be available to help determine which parent fills it out
  • A dashboard reminder will let the student know whether all parts have been completed. They have 45 days or the SAI will not be calculated or sent to colleges

Independent Status

Past FAFSA

Students whose parents are not available have to get evidence in order to be considered “independent”(had to be verified)

Simplified FAFSA

Streamlined version of Provisional Independent Status: check box on the FAFSA and colleges will have broader leeway to make calls and determine independence

Which Parent?

Past FAFSA

Divorced Parents: custodial parent filled out the FAFSA

Simplified FAFSA

Divorced Parents: parent providing most of the financial support fills out the FAFSA as “the contributor”

https://studentaid.gov/apply-for-aid/fafsa/filling-out/parent-info

Value of Business / Farm

Past FAFSA

Value of a Business / Farm with fewer than 100 employees not considered

Simplified FAFSA

  • Value of any Business / Farm is considered an asset
  • (Value = worth after debts on the business / farm paid)

Grandparents’ Contribution

Past FAFSA

Grandparents’ 529 plans “counted” as assets

Simplified FAFSA

Grandparents’ 529 plans NOT counted as assets, but as an outside contribution (grandparent considered a contributor)

EFC Becomes SAI

EFC: Expected Family Contribution

A calculation of the family’s contribution to the student’s education, from parent and student assets and income

SAI: Student Aid Index

A calculation of how much financial aid may be awarded to meet the student’s calculated need

FAFSA Contribution Calculation

Past FAFSA

  • Expected Family Contribution
  • EFC was generally divided by the number of students enrolled at least 50% in college
  • 2 in college with $10,000 EFC would mean $5000 contribution for each student

 would mean $10,000 eligibility for each student

Simplified FAFSA

  • Becomes Student Aid Index (Eligibility)
  • SAI will not be divided by number of students in college
  • 2 in college with $10,000 SAI

How Contribution is Distributed

Past FAFSA

  • The EFC was an annual figure Split by quarter / semester
  • If a student began in the Spring semester, their aid would be calculated on 1 / 2 EFC

Simplified FAFSA

  • Whole SAI is applied for each term
  • If a student began in the Spring term, their aid would be calculated on 100% SAI
  • This is slated to be corrected for next financial aid year by the Congress

If a Family Does Not File Taxes

  • Student has an automatic SAI of $0
  • If the data from prior prior year is wrong, i.e. number in family changes, then the student must make the change with each financial aid office at each college
  • All contributors must consent to have the tax info provided: student, parent in order for the FAFSA to be processed

Lowest Contribution

Past FAFSA

EFC lowest amount is $0

Simplified FAFSA

  • SAI lowest amount will be a negative number (-$1500) to determine who is most needy
  • Colleges will only be able to package to $0

“Room and Board” Changes

Past FAFSA

Room and Board:

  • Cost of Attendance included a standard meal plan as determined by the college

Simplified FAFSA

Becomes Food and Housing:

  • Cost of Attendance must include the largest meal plan offered

IRS Data Retrieval Tool

Past FAFSA

  • Use of the IRS Data Retrieval Tool (DRT) is an option

In the early 2000s, FSA worked with the IRS to create the Data Retrieval Tool (DRT), which allows students and parents to import their tax return data from the IRS into the FAFSA

Simplified FAFSA

  • “Consent” to have the IRS provide data to the US Dept of Education is given in the FSA ID application process
  • The FUTURE Act amends the Internal Revenue Code (IRC) to authorize FSA to receive individuals’ FTI directly from the IRS.
  • Because the FUTURE Act enables a Direct Data Exchange (the Future Act Direct Data Exchange or FADDX)between IRS and ED/FSA going forward,1 such information will come directly from IRS rather than from students and families

Completing the FAFSA

If the contributors don’t complete their sections:

  • Email notices will be sent to the “contributors”
  • If not completed by every contributor within 45 days, the FAFSA is cancelled
  • Then FAFSA not processed, i.e., no financial aid will be awarded