More than 400,000 people have started or submitted the 2024-25 version of the federal student aid application since it was released to prospective students last Saturday, according to the Department of Education, making them the first among millions who will see a completely different version of the application this year that implements changes mandated by Congress in 2020.
Key Facts
The federal student aid application (FAFSA) allowing students to request financial aid for the 2024-25 academic year was issued for a “soft launch” for the first time on Saturday, December 30 – three months after its usual date of October 1.
The form was open for only 30 minutes on Saturday and Sunday, then for two hours on Monday and six hours on Tuesday, according to a Department of Education spokesperson, during which time more than 150,000 people submitted their applications and another 250,000 began entering their information.
The form includes only 36 questions – significantly fewer than the 108 questions in past years – and aims to help the Department of Education restructure its lending process and change the formulas used to determine how much aid is provided to each student.
Main Changes
Key changes include that the department will no longer include sibling discounts – families will not automatically receive additional aid if there is more than one child in college – and families that are wealthier or of middle income will no longer qualify for aid at the same level as they did previously.
Congress mandated the changes in 2020, and even though they are only being implemented now, this year’s FAFSA will still rely on consumer price index figures from years past that do not account for current inflation – which could mean that students “will receive less financial aid than they deserve,” according to one expert who told CNBC.
More low- and middle-income families should qualify for Pell Grants than ever before – which do not have to be repaid – and families that cannot contribute to their children’s education should not see significant changes in eligibility.
Other Notable Adjustments for This Year
The FAFSA form will not connect to state aid applications, meaning that students in a few states will have to fill out multiple forms to apply for both federal and state aid; it may take three days to create a federal student aid ID for students and parents, which is required to log into the FAFSA website; a virtual waiting room has been set up to help manage site traffic.
The federal deadline for completing the FAFSA is June 30, 2025, although some states have earlier deadlines.
Critical Quote
“Before and during the soft launch, we learned about some minor issues,” the Department of Education said in a statement on Sunday, December 31. “We are aware of these issues and are working to resolve them.”
What to Watch For
The currently available FAFSA form is part of the “soft launch” of the new application by the Department of Education, and users may see the site experience outages in the coming weeks as the agency conducts maintenance or fixes issues. The department warned that the form may not always be available, but any information submitted during the soft launch will be saved and students will have “plenty of time to complete the FAFSA form.” Even those submitting the form in early January will not have their information sent to schools until later in the month.
Main Background
The stimulus bill passed by Congress in December 2020 included several provisions aimed at achieving equity in higher education, including restoring eligibility for prisoners to receive Pell Grants and simplifying the previously cumbersome FAFSA process, which has been partly blamed for the decline in the number of students (particularly from low-income families) applying for federal financial aid. Lawmakers said the changes would make it easier to apply for aid, direct more assistance to part-time students and community colleges, and support institutions that historically serve minorities.
Number
Big
112 billion dollars. This is the amount that the Federal Student Aid office provides annually in grants, studies, and loans.
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Mary Whitfill Roeloffs
Forbes Staff
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