Each year, millions of students fill out the Free Application for Student Aid (FAFSA) to get help to pay for college. This help comes from federal and institutional aid, such as grants, scholarships and loans.

For the 2024-25 award year, the FAFSA is getting a facelift that includes a redesign and fewer questions. Plus, formulas determining aid eligibility have been modified with the goal of expanding financial assistance for low-income families.

When preparing to submit the FAFSA for next school year, these are six topics to be aware of:

1. The FAFSA Application Opens Later

The FAFSA for the 2024-25 school year is tentatively set to launch on December 31st, 2023 then return to the October 1st launch date each year after. 

It is better to submit the FAFSA sooner rather than later as some needs-based aid may be offered on a first-come, first-served basis, and could increase your chances of qualifying for funding while it’s available.

2. New Methodology Calculates Aid

FAFSA’s new Student Aid Index (SAI) replaces the expected family contribution (EFC) metric to calculate aid eligibility.

In general, the SAI and EFC work similarly. Each number represents an amount that estimates what families can pay for a student’s education costs, and it considers factors like household income and assets.

Your eligibility for need-based financial aid is determined by subtracting your SAI (previously EFC) and other financial assistance from the cost of attending school. Here’s the equation:

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

The calculation for the SAI considers the income and assets of the student and others financially contributing to their household, like parents and spouses. Below are some key ways the SAI differs from the EFC:

• Fewer questions asked to determine financial standing. The new FAFSA application requires that financial information be pulled directly from IRS data when possible, so there’s less information to enter manually. The old FAFSA had over 100 questions, while the new one has less than 50.

• You can have a minimum SAI of -$1,500. The old EFC metric allowed a minimum estimated family contribution of zero after considering income, assets and other factors. With the SAI, you can have a contribution below zero.

• Families don’t get a break for having multiple students in college. The new methodology no longer considers the number of family members attending college to determine aid. This means families with multiple college students could receive less aid for the 2024-25 school year. However, schools can adjust offers at their discretion, considering the financial burden of having many students in school.

• Students must report the income of the parent who provides the most support. Instead of reporting the income of the parent they live with for most of the year, dependent students of divorced or separated parents now need to report the income of the parent who provides the most financial support.

• Some income isn’t considered in aid calculation. You may no longer have to include some untaxed income to your FAFSA application, such as money received from extended family members, like grandparents. Other untaxed income—such as housing and living allowances paid to service members—may also be excluded from the aid analysis.

3. Students May Automatically Qualify for the Maximum Pell Grant

Pell Grant eligibility is tied to how household income and family size compares to poverty guidelines. Pell Grants are a type of aid that doesn’t have to be repaid; grants are awarded to students with an “exceptional” financial need.

Independent and dependent students below the poverty threshold may automatically qualify for the maximum Pell Grant. For example, students in single-parent households may be eligible for the maximum Pell Grant if their adjusted gross income (AGI) is less than or equal to 225% of the poverty guideline for their family size.

Students from a two-parent home (and independent students without dependents) may qualify for the maximum grant amount if their AGI is less than 175% of the poverty line.

In addition, access to Pell Grants is now open to confined or incarcerated students and students who were defrauded by a school or who attended a now-closed school.

4. Everyone Needs an FSA ID To Complete the FAFSA Application

For the 2024-25 school year, anyone required to fill out part of a student’s FAFSA—including a spouse, parent or step-parent—must create their own FSA ID and password.

The FSA ID provides a digital signature on your application for security reasons. Application contributors can set up an FSA ID on the StudentAid.gov website by providing their birth date, Social Security number and full name.

5. Consent Is Required for Tax Data Transfers

You can digitally transfer much of the information required for the FAFSA from the IRS, but the transfer requires consent from each application contributor. So, if a spouse or parent needs to fill out part of your FAFSA, they must agree to provide their tax details.

Application contributors should get a FAFSA notification requesting their consent. If they don’t agree to have the IRS information transferred, students can still apply for aid, but may not qualify without consent.

6. Students Can List Up to 20 Schools on the Digital Application

Students can now list up to 20 schools on the online FAFSA application. This allows you to put many different school options on your list. However, if you fill out the PDF version of the FAFSA, you’re limited to 10 schools.

How To Prepare for Your FAFSA Application

The launch date of the new FAFSA for the 2024-25 school year is still several months away, but taking the steps below could help students and parents prepare before it opens.

• Locate your Social Security card. If you’re a high school student, you may not have your Social Security number committed to memory yet. Consider tracking down your Social Security card so you have it ready for the application. If it’s misplaced, you have time to request a copy from the Social Security Administration.

• Set up an FSA ID. Students and application contributors can set up FSA IDs before the FAFSA opens, so that’s one less task to worry about when it’s time to apply.

• Figure out your dependency status. Students answer questions during the FAFSA application to determine if they’re an independent or dependent student, but you can answer preliminary questions on the StudentAid.gov website to anticipate what the dependency status might be. This way, students can give parents and other application contributors a heads-up if they’ll need to fill out parts of the FAFSA.

• Mark your calendar for a December launch date. Make a note to yourself to everything prepared by December 31st so you can start the application as soon as it opens.

What is your name and occupation? 

Gary Adkins, US Army Major, Attorney, Volunteer

What degree/ degrees did you get for that position? 

B.A. from Morehead State University 1974 (Major – Geography, Minor – Military Science); J.D from University of Louisville 1989

What are some key things you would share with others interested in pursuing this pathway? 

The military needs individuals who are leaders, who like challenges, and can think through problems. Have stamina and be physically fit. Law schools look for a diversity of individuals who like challenges and can think through problems. Lots of reading is required. I had completed a speed reading course while in the Army and that greatly helped. The law is an opportunity to individuals from any type of bachelor’s degree. The key is getting into law school. If you have good university grades and score well on the Law School Admission test, you should succeed in law school.

Did you find your job easily/ what do you think the future for your career is? 

There are lots of opportunities for career advancement in the US military. Cyber security, robotics, aviation, space force, are key areas that are expanding. A legal career can expand to many different areas, depending upon your interest. State or Federal government legal opportunities are available. Private attorneys work in business, intellectual, housing, criminal, personal injury, domestic, contract, etc.

What advice would you give high school students about college and pursuing a career?  

Prepare by studying, make good grades, set big bodacious goals, monitor your milestones and don’t give up on your goals. Hang with friends who are a positive influence on you and have similar goals. Don’t use controlled substances.

Share a bit of your perspective that correlates to being an Upward Bound alumni and how it helped with college/ career? 

Upward Bound was key to my being able to attend Morehead State University. My school’s guidance counselor was not interested in me or many others. Her attention was focused on the students whose parents were professionals. UB showed me how to get the funds to go to MSU and that I would be able to survive college. It served as a support system while I was at MSU. I met many friends and made lots of connections with faculty and staff (UB, MSU, military, law school, and legal). Those friends and connections have continued over the years. It is called networking. Networking helps with any career.