Paying for ACC
FAFSA SIMPLIFICATION ACT
The FAFSA Simplification Act represents a significant overhaul of the processes and systems used to award federal student aid starting with the 2024–25 award year. This act aims to make applying for federal financial aid easier for students.
FAFSA SIMPLIFICATION ACT AND CHANGES TO THE 2024-25 FAFSA
The Free Application for Federal Student Aid (FAFSA®) is changing for the 2024-25
academic year. The good news is that the FAFSA itself will be simplified, with changes
that include a redesign and fewer questions. Plus, formulas determining aid eligibility
have been modified with the goal of expanding financial assistance for low-income
families.
Why is FAFSA Changing for 2024-25?The FAFSA Simplification Act passed on Dec. 27, 2020 as part of the Consolidated Appropriations Act, 2021 and represents a significant overhaul of federal student aid, including the FAFSA form, need analysis, and many policies and procedures for schools that participate in the Title IV programs. Federal Student Aid will be implementing the FAFSA Simplification Act alongside the FAFSA portion of the Fostering Undergraduate Talent by Unlocking Resources for Education (FUTURE) Act which authorizes a direct data exchange with the Internal Revenue Service (IRS) to make it easier to complete the FAFSA form. |
WHAT’S CHANGING WITH THE FAFSA?
The FAFSA for the 2024-2025 school year is projected to be available on December 31, 2023. On or after that date, you may complete the FAFSA. Please go to http://www.studentaid.gov.
ESTIMATED FAMILY CONTRIBUTION (EFC) IS NOW THE STUDENT AID INDEX (SAI)
The EFC and SAI work similarly as each number represents an amount that estimates what families can pay for a student’s education costs, and it considers factors like household income and assets. Additionally, SAI may be a negative number down to -1500.
FAMILIES WITH MULTIPLE CHILDREN IN COLLEGE COULD RECEIVE LESS AID
The number of children in college will no longer be included in the SAI calculation. Questions will still appear for institutional purposes only.
WHAT IS A CONTRIBUTOR?
A contributor is considered any individual required to provide a signature and consent on the FAFSA form, including the student, student’s spouse, a biological or adoptive parent, and/or the parent’s spouse (step-parent).
Each contributor will now need to provide their consent to their federal tax information (FTI) being included in the FAFSA.
WHO IS A CONTRIBUTING PARENT?
The contributing parent is no longer the custodial parent, but the parent with the greater income and/or assets. The new 2024-25 FAFSA will have a Parent wizard to help students identify who should be added as a contributing parent. Parent is defined as your biological or adoptive parent and/or the parent’s spouse (step-parent).
CONSENT IS REQUIRED FOR EVERY CONTRIBUTOR
Consent is required to retrieve and disclose FTI. Every contributor is required to consent. If consent is declined, the student’s FAFSA will not be considered for federal student aid, including grants and loans. A consent is still required even if the student and/or parent didn’t file a U.S. federal tax return or any return at all.
New IRS Data Retrieval Tool Eases the Process
The IRS Data Retrieval Tool (DRT) is being replaced with Direct Data Exchange (DDX) as the process for transferring federal tax information (FTI) from the IRS to the FAFSA. This will reduce the number of financial questions that most families are usually asked on the FAFSA. In order to use the DDX, all contributors must consent to having their tax information transferred.
This is an increase by 10 schools from the 2023-2024 FAFSA. If there are specific state guidelines when you select a school, the online FAFSA will list them for review in that section.
WHAT’S STAYING THE SAME WITH FAFSA?
Students must still complete a FAFSA to be considered for any federal and/or state grants. You have to fill out a new FAFSA every year.
If you and/or a parent have already created a FSA ID, you can continue to use the one created. Your username does not expire, but your password expires every 18 months if you haven’t changed it.
Prior-year tax information is still requested. For the new 2024-2025 FAFSA, you will report your 2022 income and assets. Families with significant reductions in income will still be able to submit a Special Circumstances Application.
FEDERAL STUDENT AID ESTIMATOR
You can use the Federal Student Aid Estimator before filling out the FAFSA form to understand how much federal student aid you may be eligible for. The tool estimates the Student Aid Index (SAI) for the 2024-25 award year.
FAFSA TIMELINE AND TAX INFORMATION
| What term would you like to enroll in? | What FAFSA? | What Tax Year to use? |
|---|---|---|
| Spring 2024 | 2023-24 Application opened on October 1, 2022 | 2021 |
| Summer 2024 | 2023-24 Application opened on October 1, 2022 | 2021 |
| Fall 2024 | 2024-25 Application opens December 2023 | 2022 |
| Spring 2025 | 2024-25 Application opens December 2023 | 2022 |
ADDITIONAL INFORMATION AND RESOURCES
ACC's Financial Aid office is dedicated to providing timely updates to our students, families, and community. With the significant amount of changes, we will continue to update this page as we receive them.
Additionally, the Federal Student Aid site will give you the latest FAFSA news and documents. Visit How FAFSA Changes Will Impact Families in 2024-25 to learn more.
Attend one of our virtual group and individual sessions for guidance on the FAFSA application process. Click here for a list of items to bring to the workshop.
ATTEND A WORKSHOP
A contributor is any individual required to provide a signature and consent on the FAFSA form, including the student, student’s spouse, biological or adoptive parent, and/or the parent’s spouse (step-parent).
The IRS will develop the FUTURE Act–Direct Data Exchange (FA-DDX) technology solution, which will establish a secure connection between the IRS and FSA agencies to process requests in near-real time.
The IRS Data Retrieval Tool (DRT) electronically transfers Federal Tax Return Information (for students and parents) into your FAFSA form.
Questions? Contact Us.
Financial Aid Office
financialaid@alamancecc.edu
336-506-4340