2024-2025 FAFSA Changes

Simplification for a Streamlined Experience
The 2024-2025 FAFSA brings a breath of fresh air with a simpler format; most students will see the question count drop from 108 to just 46. The smart application will navigate your journey, skipping irrelevant sections based on your unique situation. Plus, the process of reporting income and tax details is now more straightforward, as we'll describe shortly.

Effortless Income and Tax Data Sharing
Gone are the days of manual entries or using the IRS Data Retrieval Tool (DRT). Starting with the 2024-2025 cycle, you'll use the IRS Direct Data Exchange (DDX) for a seamless transfer of your financial details to the FAFSA, or you'll simply confirm if you haven't filed taxes.

Unified Access with FSA ID
Every contributor to your FAFSA—whether it’s you, your spouse, your parents, or a stepparent—will need an FSA ID. This is a key step to ensure a unified and secure process for all involved, especially if taxes are filed separately.

Introducing the Student Aid Index (SAI)
The traditional Estimated Family Contribution (EFC) is being transformed into the Student Aid Index (SAI). It’s not just a new name—it’s a new system, which can even indicate a negative figure, bottoming out at -1500, to better reflect your aid eligibility.

Housing Assumptions for Financial Aid
UW-Stout is adapting to the FAFSA's shift away from housing plans. Our assumption is first and second-year students will embrace the campus living experience, while those in their third year and beyond will venture off-campus. This change is pivotal in customizing your financial aid package to suit your Stout journey.

Refined Parental Data Requirements
The FAFSA narrative is changing, and so is the way we consider parental contributions. For students with divorced or separated parents, the FAFSA will now focus on the parent who offered more financial support over the last year. If that parent has a new partner, we'll include the stepparent's information too. And in cases of equal support? It's the earnings of the higher-income parent that will count.

Revised Family Contribution Calculations
In a significant shift, the Student Aid Index (SAI) removes the previous consideration of multiple students in college from the same household. This means for some, particularly those with college-bound siblings, the lens through which need-based aid eligibility is assessed will alter, potentially affecting the aid received.

Bringing Family Farms and Businesses into the Equation
The FAFSA is evolving to include more of your family's financial picture. Now, the value of family farms and small businesses with fewer than 100 employees will no longer be omitted—they'll be part of your story when calculating your FAFSA. For Stout students, this change underscores our commitment to understanding and supporting the full scope of your financial journey.