Better FAFSA® Better Future – FAFSA Simplification
Big changes are on the horizon for the Free Application for Federal Student Aid (FAFSA) as we prepare for the 2024–2025 award year. The Financial Aid Office at Palomar College is committed to keeping you updated with the latest information, ensuring that we can provide students, families, and our campus community with the necessary knowledge about the upcoming modifications.
The FAFSA Simplification Act was recently been passed by Congress to streamline the financial aid process for students and families. It is an extensive overhaul of the processes and systems used to award federal student aid. Specifically, this law makes it easier for students and families to complete and submit the FAFSA form and expands access to federal student aid.
CADAA Applicants– There will be some changes to the CADAA to mirror the updates to FAFSA as well.
KEY FAFSA CHANGES:
The Expected Family Contribution (EFC) has been replaced by the Student Aid Index (SAI) in the federal financial aid process. The SAI serves as the new measure of a student’s eligibility for federal financial aid programs. Unlike the EFC, which can be as low as $0, the minimum Student Aid Index will be -$1,500.
The act mandates the utilization of IRS data to streamline the application process. Income data will be directly pulled from the IRS, reducing the need for manual income reporting. The Data Retrieval Tool (DRT) will now be referred to as the Direct Data Exchange (DDX) for the Federal Taxpayer Information (FTI).
Any person providing information on the FASFA is known as a “Contributor”. Every contributor, whether it’s the student, the student’s spouse, a biological or adoptive parent, or the parent’s spouse, must obtain an FSA ID to access and complete their respective sections of the online FAFSA form. Additionally, ALL contributors are required to provide consent and approval for the direct transfer of their federal tax information into the student’s FAFSA form through a direct data exchange with the IRS. If your parents filed taxes jointly, only one parent is required as a contributor and will report information for both parents.
While the FAFSA will still inquire about the number of family members in college, it will no longer factor into the federal, state, and institutional financial aid calculations.
A dependent student whose parents are divorced or separated will report the income for the parent who provides the most financial support regardless of whom the student lives with.
Will be allowed to apply for an FSA ID. This advancement will expedite the processing of the FAFSA, allowing them to conveniently submit the form online, eliminating the need to print, sign, and mail their application.
Starting in the 2024-2025 award year, the way your Pell Grant eligibility is calculated is changing from the old system of enrollment level categories to a new approach called “enrollment intensity.” Please view this page to read more about the changes.
HOW CAN YOU PREPARE:
- Create an FSA ID (if you have not already done so) on the Federal Student Aid website and assist your contributors, such as your parent(s) or spouse in creating an FSA ID.
- Check this page often for updates. This webpage will be updated as the Financial Aid Office prepares for these changes, so you can stay informed about your Financial Aid resources, and the changes ahead.
- If you have any questions or concerns, contact our Financial Aid team: finaid@palomar.edu | (760) 744-1150 Ext 2366