The FAFSA Simplification Act has recently been passed by Congress to streamline the financial aid process for students and families. Among other key changes this legislation will reduce the total number of questions students see when filing the FAFSA, attempts to clarify the questions that will be asked, and will aim to increase Federal Pell Grant eligibility. While in some cases the FAFSA simplification could increase some students’ financial aid eligibility, others may see a decrease in aid. Key changes that can impact the application process and resulting financial aid offers for students are outlined below.
Key changes include, but are not limited to:
- The 2024-2025 FAFSA is now available!
- The Estimated Family Contribution (EFC) has been replaced by the Student Aid Index (SAI). The SAI is a different way to determine aid eligibility.
- Parents and students will use IRS Direct Data Exchange (DDX) to transfer tax information to FAFSA.
- The FAFSA Simplification Act expands the Federal Pell Grant to more students and will link eligibility to family size and the federal poverty level.
- Schools will use the SAI to determine eligibility for federal financial aid programs.
- SAI will no longer take the number of students in college into consideration. This may reduce need-based aid eligibility for current students with siblings in college.
- For students whose parents are separated or divorced, the guidance on which parent income to report has changed to the parent who provides the most financial support to the student, rather than the parent who lives at the student’s primary residence.
- Students, Spouse, and all Parents including those without a Social Security Number will be able to apply for an FSA ID. This will speed up FAFSA processing time as they’ll be able to submit the form online, rather than having to print, sign and mail their application.
- Students who qualify for a dependency override due to homelessness or not being able to access their parents’ financials, no longer need to recertify their dependency status each year, unless their situation changes.
SPECIAL OR UNUSUAL CIRCUMSTANCES: More information on the request can be found here.
There are some helpful Tips on preparing for FAFSA. Visit FSA page for issues with completing FAFSA as some helpful tips, possible resolution, or workarounds are offered to assist students and families.
Read more on the Congressional Research Service Report, visit The FAFSA Simplification Act.
The new simplified FAFSA form will be shorter and require much less effort on your part to fill out. If at any point you have any additional questions, the Office of Financial Aid is here to help. We can be reached at 718-982-2030 or FinancialAid@csi.cuny.edu.
See below for Frequently Asked Questions.
CONTRIBUTORS FAQs
Q: What are contributors on the FAFSA 2024-25?
A: Contributor is a new term introduced on the 2024-25 FAFSA form. It refers to anyone asked to provide information on a student's FAFSA form, i.e., the student, the student's spouse, a biological or adopted parent, or the parent's spouse (stepparent). A Contributor is NOT a grandparent, foster parents, legal guardian, brother or sister, aunt or uncle, even if they helped provide for or raise the student. A Contributor on the FAFSA form does not mean they are financially responsible for the student's education costs.
Q: How are contributors determined?
A: The student's or parent's answers will determine which contributors (if any) will be required to provide information.
Q: What do contributors need to provide?
A: The contributors will need to be invited to complete their portion of the FAFSA form by entering their name, date of birth, Social Security number, and email address. They must also provide personal and financial information in their own sections of the FAFSA form.
Q: What are the steps contributors must follow?
- Contributor receives an email informing them that they've been identified as a contributor.
- Contributor creates a StudentAid.gov account if they don't already have one.
- Contributor logs in to account using their FSA ID account username and password.
- Contributor reviews information about completing their section of the FAFSA form.
- Contributor provides the required information on the student's FAFSA form and submits for processing.
Q: What if a parent contributor does not want to provide their information on the student's FAFSA?
A: If a required contributor refuses to provide their information or consent, it will result in an incomplete FAFSA form and the student will become ineligible for federal student aid. Being a contributor does NOT implicate financial responsibility, but is required for students to receive Federal aid.
Q: Can a student be considered independent if a parent refuses to give consent?
A: A student cannot be considered independent of their parents just because they refuse to help with completing the FAFSA form. If parents are not supporting student and refuse to provide their information or their consent and approval to transfer their federal tax information on the FAFSA form, here are the steps for filling FAFSA form online to accept Unsubsidized Federal Direct Loan only:
- Select “Yes” to the “Are the student’s parents unwilling to provide their information, but the student doesn’t have an unusual circumstance that prevents them from contacting or obtaining their parents’ information” question on the FAFSA form.
- The FAFSA form will be submitted without parent information.
- Student must complete Federal Direct Loan application and follow up with the financial aid office.
Q: What if parents are divorced? Who is the contributor to the FAFSA?
A: Students that live with a single/divorced/widowed parent and receive most support from that parent, will report only one parent on the FAFSA. The parent included in the FAFSA as a contributor must be the parent that provides the greater portion of the student's financial support. If that primary parent is remarried, the income of that parent's spouse (stepparent) will also be required.
Q: Why does the FAFSA 2024-25 require consent from students and contributors?
A: According to the Future Act, all students and contributors must provide consent to the following:
- Have their federal tax information transferred directly into the FAFSA form via direct data exchange (DDX) with the IRS;
- Have their federal tax information used to determine the student's eligibility for federal student aid; and
- Allow the U.S. Department of Education to share its federal tax information with postsecondary institutions and state higher education agencies for use in awarding and administering financial aid.
Important: Even if students or contributors don't have a Social Security number, didn't file taxes, or filed taxes outside of the U.S., they still need to provide consent.
Q: What if a student or a contributor does not want to provide consent?
- If a student or required contributor doesn't provide consent to have their federal tax information transferred into the FAFSA form, the student will not be eligible for federal student aid—even if they manually enter tax information into the FAFSA form.
- Information about how federal tax information will be used and the consequences of not providing consent will be included on the FAFSA form.
- Legal parents must provide consent to transfer federal tax information, even if one of the parents didn't file or had no income. If parents fail to provide consent, the student won't be eligible to receive federal student aid.
Federal Student Aid ID (FSA ID) FAQs
Q: What is FSA ID, and who needs it?
- All students and contributors must create a StudentAid.gov account to complete the FAFSA form online.
- Students and contributors will use their FSA ID account username and password to log in to their accounts.
- Even if a parent or spouse contributor doesn't have a Social Security number, they can still get an FSA ID by filling out their portion of the questionnaire.
Q: When can a parent or student create an FSA ID?
A: It's best that parents and students create their FSA ID and have it ready any time before they begin to complete the FAFSA application. The same FSA ID can be used each year.
Q: How does a student or other contributors create an FSA ID?
A: To create an FSA ID, you'll need your Social Security number (SSN), full name, and date of birth. Students and each contributors will need their own email address and mobile phone number. Providing a mobile phone number and/or email address that you have access to will make it easier to log in to ED online systems and allow you to verify your FSA ID before using it on the FAFSA and additional account recovery options. The Federal Student Aid step-by-step video can assist with creating a FSA ID.
Q: What if my parents are not in the United States?
A: Your parents' citizenship status doesn't affect your eligibility for federal aid. They can create an FSA ID by providing their personal identification and authenticate by answering knowledge based identity questions. For FAFSA purposes, you must provide your parents' income, no matter where they reside.
Q: My parent is married/remarried. Is the parent's spouse required to get an FSA ID as well?
A: It'll depend on how they filed their taxes. If they filed jointly, only one parent needs an FSA ID. If they filed separately, both parents, including step-parent would need their own FSA ID.
Q: Will parents and students need to create a new FSA ID if they have had an FSA ID in the past?
A: No. You can retrieve your existing FSA ID if you forgot your username and password.
Q: Why do I have to set up two-step verification for my StudentAid.gov Account?
A: Two-step verification, a form of multi-factor authentication (MFA), helps protect your StudentAid.gov account with additional protection from fraud. Each contributor must have a unique phone number and email for MFA.
TAXES AND FINANCIAL DATA FAQs
Q: Which parent’s information should be reported on the FAFSA form?
A: If your legal parents (biological or adoptive parents) are married to each other, or are not married to each other and live together, you should report information about both of them on your FAFSA form. However, for situations that need more guidance can be reviewed here.
Q: What happens if a student, spouse, parent, or stepparent does not want to provide consent to transfer tax information from the IRS on the FAFSA?
A: If a required contributor refuses to provide their information or consent, it will result in an incomplete FAFSA form, the Student Aid Index (SAI) will not be calculated, and the student will become ineligible for federal student aid. Being a contributor does NOT implicate financial responsibility, but is required for students to receive Federal aid.
Q: What if a contributor had a low income and was not required to file taxes, do they still need to provide consent?
A: Students and contributors still need to provide consent when submitting the FAFSA so the IRS can confirm to Federal Student Aid (FSA) their tax filing status. Refer to IRS tax filing threshold or check with an Accountant for tax filing requirements.
Q: Will non-custodial parents be contributors if they have not claimed the child on their taxes?
A: Starting with the Simplified FAFSA, students will determine which parent to report based on which one provides the most financial support. It is ok if the parent or parents reported do not claim the student on their taxes. The reported parents will provide consent to transfer their tax data even if they do not claim the student on their taxes.
Q: If parents that are remarried provide more support to the child than a biological parent, does the stepparent have to provide their tax information?
A: Yes. If the parent providing more financial support is remarried, the stepparent's tax information is required.
Q: If a parent is self-employed, do they still need to indicate they own a business on the FAFSA?
A: Being self-employed does end up showing business income on tax returns. Refer to IRS guidelines or check with an Accountant.
Q: If a contributor amends their taxes, will a 1040X need to be submitted to the school?
A: Starting 2024-25, when the student, spouse, parent, and/or stepparent provide consent, the IRS's Federal Tax Information (FTI) will include the information from an amended tax return. However, there may be instances where you will be required to provide amended return to the Financial Aid Office.
Q: Can income be self-reported on the FAFSA?
A: After you provide consent on the FAFSA, if the IRS cannot transfer your Federal Tax Information (FTI) to your FAFSA application likely due to Fraud, identity theft, or a breach, the application will allow you to self-report it. Self-reporting one's tax information on the FAFSA does not override the requirement for each required contributor to provide consent on the FAFSA form.
Q: If a parent does not want to or refuses to or unable to create an FSA ID, is there an alternative for that parent to provide consent, such as mailing a wet signed consent page?
A: There is no longer a separate signature page, and there won't be a consent signature option on paper. The only alternative option is to submit a paper FAFSA form completed by all contributors and mailed to the Federal Student Aid. This method is not recommended due to complexity and increased processing time.