Dear Campus Colleagues,
Significant changes are coming to the federal financial aid process in the 2024-25 academic year as part of the Consolidated Appropriations Act 2021 and 2022. The Department of Education has described these changes as the most ambitious and significant redesign of the Free Application for Federal Student Aid (FAFSA), the application process and the formulas used to determine aid eligibility, since the Reagan era. As colleagues who work closely with the financial aid team in the awarding of more than $500 million in financial aid annually, we are alerting you to these changes in preparation for the 2024-25 academic year.
FAFSA Simplification
The FAFSA Simplification Act will streamline the application process for federal aid applicants by reducing the number of questions on the FAFSA form and providing a direct data exchange with the IRS. The Act will also expand eligibility for Federal Pell Grants and reduce barriers for some populations of students.
State and institutional aid programs are also dependent on the federal aid process, including the California Dream Act Application (CADAA), Cal Grant, Middle Class Scholarship and university grant awarding. We are working closely with our colleagues at the California Student Aid Commission and UC Office of the President to understand and prepare for downstream changes at the state and campus levels for 2024-25.
Important FAFSA Changes
Many of the processes, terminology and eligibility requirements we are all familiar with will be changing, including:
- The FAFSA and CADAA are expected to open December 31, 2023, instead of the traditional October 1st date.
- New terminology will be used throughout the federal aid process.
- The Expected Family Contribution (EFC) will be replaced by the Student
Aid Index (SAI).
- A new federal need-analysis formula will be used to measure a family’s ability to pay for college that allows for a minimum SAI of -$1,500.
- A separate eligibility determination criteria links family size and the federal poverty level to Federal Pell Grant eligibility.
- All FAFSA contributors (students, parent(s), and/or spouse) will be required to have an FSA ID and consent to sharing information with the IRS to submit the FAFSA.
Considerations for Campus Partners
We anticipate many campus partners who have a connection with financial aid could be impacted by these changes. This includes departments and programs providing need-based funding and/or services to financial aid recipients, as well as partners utilizing financial aid data for reporting. More than 23,000 undergraduate students receive some form of financial aid and nearly 11,000, or 32% of the undergraduate population are Federal Pell Grant recipients. We encourage our campus partners to begin considering how changes in the student population, including a possible increase in Federal Pell Grant recipients, may impact the services and resources your department provides.
Key Takeaways
A change of this magnitude will require professional and student staff to support financial aid applicants navigating these changes. The Financial Aid and Scholarships team is preparing resources to help you serve students and families.
As a starting point, Enrollment Management Creative Services created a document that highlights many of the changes, including important dates and planning considerations for 2024-25. Our office will soon begin engaging campus stakeholders to present the changes as well as our initial analysis of how our financial aid population may change. If you represent a department, college, school or division and are interested in a Better FAFSA Better Future presentation for your area, please contact us. We will do our best to accommodate requests and appreciate your scheduling flexibility.
What can you do now?
The Department of Education is sharing information, updates and changes related to Better FAFSA Better Future regularly. We encourage you to familiarize yourself with the resources readily available, including:
More information is available on our FAFSA Simplification webpage. We will continue to provide updates, resources and support to the UC San Diego community as we navigate these changes together.
We hope this early notification of changes will help you plan and reduce impacts to the services and resources you provide to students. We appreciate your patience and support.
