Filling out the Free Application for Federal Student Aid (FAFSA) has long been one of the more frustrating steps in the college planning process. Many found the form confusing, overly detailed, and hard to complete without mistakes. To fix that, the Department of Education introduced a major overhaul for the 2024–25 cycle, promising a simpler experience and improved access. While the form is now shorter and more automated, it’s also brought delays and unexpected policy shifts. Whether you’re applying now or helping someone else, knowing what’s changed can make a big difference.

What's Different This Year?

The FAFSA changes stem from the FAFSA Simplification Act, passed in 2020. It aimed to reduce barriers and modernize the process. One of the biggest changes is how tax data is shared. Instead of entering numbers manually or using the older IRS Data Retrieval Tool, applicants now use the IRS Direct Data Exchange (DDX). Everyone involved—including parents or spouses, must give consent for this data to be pulled, or else the application is marked incomplete.

The number of questions has dropped significantly, often fewer than 40 for many applicants. That means less paperwork, fewer chances to enter something wrong, and a generally faster form. But if a contributor doesn't grant IRS consent, even if the student completes their part correctly, the FAFSA remains unusable.

Another big shift is the replacement of the Expected Family Contribution (EFC) with the Student Aid Index (SAI). While both serve to estimate a family’s ability to pay, the SAI is calculated differently. It no longer includes an adjustment for having multiple students in college. In the past, this factor could greatly increase aid eligibility for middle-income families. That benefit is now gone.

The SAI can result in more aid for students from low-income backgrounds but may reduce available aid for some middle-class households. Pell Grant eligibility has also expanded, with the new formula using federal poverty guidelines to offer more automatic eligibility based on income and family size.

Delays, Errors, and Confusion

One major problem this year has been timing. Instead of launching in October, the FAFSA opened on December 31, 2023, and only partially. Glitches and outages made early access difficult. When the form became widely available, many families still couldn’t submit it properly. Even after submission, schools didn’t receive applicant data until late March 2024.

These delays pushed back financial aid offers. Many colleges couldn’t send out award letters on time, which complicated decisions for students trying to compare packages or meet enrollment deadlines. Some schools extended deadlines to adjust.

There were also processing errors. A miscalculation tied to inflation updates forced the Department of Education to reprocess millions of applications. This added to the delay and made it harder for families to know where they stood.

Another issue involved IRS consent. In some cases, students or parents believed they had completed the form, but the missing consent from a contributor kept it in limbo. There was no clear notice of this problem in the system, leading to frustration.

All of this made the FAFSA harder for schools to process and more stressful for families—despite the intention to simplify the process.

Who Benefits—and Who Might Not?

For students from low-income households, the changes may help. More students now qualify for Pell Grants under the updated formula, and some qualify automatically. This is good news for students who previously had to provide more paperwork or go through verification.

Those who don’t file taxes due to low income also benefit. The new system is easier for them to navigate, and the reduced number of questions helps speed up the application.

But not everyone comes out ahead. Families with more than one child in college now face higher SAI figures, which can lead to smaller aid offers. The removal of the sibling discount has been one of the most criticized parts of the new formula.

Divorced or separated parents must now follow a different rule, too. Previously, the parent with whom the student lived most often filled out the FAFSA. Now, the parent who provides the most financial support must complete it, which has created confusion in households with shared custody or informal financial arrangements.

In both cases, these shifts may change how much aid a student receives—and who is responsible for completing the form.

What You Should Do Now?

If you haven’t submitted the FAFSA yet, it’s a good idea to do so as soon as possible. Despite earlier delays, some schools still use the submission date when determining how much aid to award. Get your FSA ID ready and ensure that everyone involved can access their linked email accounts. This will be key for consent and password recovery.

Once your FAFSA is submitted, keep an eye out for confirmation emails and status updates. If there’s an issue—like missing IRS consent—go back into the system and check each section. Many applicants have been surprised to find their application marked incomplete weeks later.

If your family's financial circumstances have changed since 2022, gather proof of those changes. You can request a professional judgment review from your school's financial aid office. They may be able to adjust your package based on new information, such as job loss or medical expenses.

And remember, the FAFSA needs to be filled out every year. While this year’s changes may have caused confusion, the process is expected to smooth out in future cycles.

FAFSA Has Changed—Stay Ready

The updated Free Application for Federal Student Aid is a big step toward simplification, but it hasn't been smooth. For some, the new form is faster and easier. For others, the removal of certain benefits and technical issues has made the process more complicated. The shift from EFC to SAI affects how aid is calculated, and who gets what has changed more than some expected. Even with delays and bumps, FAFSA remains key to receiving financial help for college. Understanding these changes—and how they affect your family—can help you avoid surprises and plan more confidently for the school year ahead.