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New FAFSA application opens Sunday, aims to gives more financial aid

By Aubrey Wright

Posted December 28, 2023

The overhauled Free Application for Federal Student Aid will soft launch Dec. 31. (Federal Student Aid)

A new Free Application for Federal Student Aid opens Sunday for the 2024-25 academic year.  

The U.S. Department of Education announced an overhaul of the FAFSA application with plans for fewer questions and expanded eligibility for financial aid after approval from Congress. Indiana requires almost all high school seniors to complete the form as students missed out on millions in federal and state need-based aid. 

 In a November update announcement, the department estimated 610,000 more students will be eligible for Pell Grants, awards given to students with exceptional financial need, bringing the total number of +eligible students for the maximum award to over 5.2 million.    

Watch PBS: What to know about upcoming changes to FAFSA

The Commission for Higher Education reported Indiana students missed out on more than $65 million in Pell Grant aid in 2021 because they didn’t complete FAFSA. 

  The application will be soft launched and will be available “periodically” after Sunday, according to FASFA’s website. The Department of Education will have planned pauses for maintenance and updates.  

The new form uses new methods to calculate how much aid a student can receive.  

Previous versions of FAFSA calculated the Expected Family Contribution to measure a student’s ability to pay for college and financial aid needed. The new application uses the Student Aid Index, calculating the figure using different methods. For example, the number of family members in college has been removed from the calculation.  

Family size and the federal poverty level will be considered for Pell Grant eligibility, so more people will qualify, the update said. The department estimates students who received the Pell Grant this year will receive more money in 2024-25. 

Applicants have to provide their parent or guardian’s income and tax information. The new FAFSA will allow students and families to use federal tax data transferred directly from the Internal Revenue Service, the department said.    

This year, Gov. Eric Holcomb signed a FAFSA requirement into law. High school seniors, except those in some nonpublic schools, will be required to complete the form by April 15 each year. There are no consequences for missing the deadline or not completing the form, and students can opt out after submitting a waiver.  

On average, the Commission for Higher Education reports each student receives about $8,000 in state and federal aid. Applicants can qualify for state scholarships and grants by completing FAFSA. Indiana’s most-awarded scholarships for low-income students, including the Frank O’Bannon Grant and the 21st Century Scholars Program, require FAFSA applications.  

Aubrey is our higher education reporter and a Report For America corps member. Contact her at aubmwrig@iu.edu or follow her on Twitter at @aubreymwright.