News
2025-26 FAFSA: What We've Learned and Our Recommendations
June 27, 2024
By Brendan Williams
The challenges in this year's FAFSA rollout have made this an unprecedented year in financial aid. School counselors, college access providers, and financial aid administrators are navigating these changes while supporting students with a form that remains problematic for many. With FAFSA completion rates down 12.4% from last year as of June, many students and families are becoming increasingly disillusioned with the financial aid process. While it's important to continue focusing on the 24-25 FAFSA, reflecting on our experiences to better support students and families in the coming year is equally important.
There is still a significant amount to learn about next year. For now, we are assuming that the FAFSA will open on October 1st and that it will largely resemble this year's version, but with fewer technical issues and an FSA ID process that works for everyone. Here are a few key insights and considerations for next year:
Start the FSA ID creation process early. Because creating an FSA ID is key to completing the FAFSA, starting this process early will allow time to resolve any identity verification issues.
Recommendation: Anyone with an SSN should create FSA IDs over the summer. However, those without an SSN should wait to see if FSA will roll out a better process for confirming their identity. Once fall arrives, we recommend everyone create FSA IDs.
Matching contributor information for successful invites is challenging. Having the correct information to invite contributors to the FAFSA can be difficult, especially for students who may not know their parent's FSA ID information.
Recommendation: Whenever possible, have parent contributors start the FAFSA and invite the student to complete their section of the form. This can be a helpful strategy for family financial aid nights or FAFSA fill-in events with parents in attendance. If this is not possible, have the parent take a picture of their FSA ID information or write it down for their student so they have the exact correct information. Try using our FAFSA checklist.
The Direct Data Exchange (DDX) makes sharing tax information easier than the previous IRS DRT, but it lacks transparency for students and families. Although consenting to the DDX simplifies the process, the federal tax information transferred from the IRS remains hidden from those completing the FAFSA. This sometimes leads students and families to question if the DDX worked correctly, what financial information was used to calculate SAI, and whether their current family size matches the tax forms.
Recommendation: Encourage students and families to bring their tax documents when completing the FAFSA. This allows them to verify the information used by the IRS, confirm their family size matches the tax forms, and have a contingency plan for manual entry if there are issues with the DDX.
Some questions on the FAFSA require additional guidance. Questions about unusual circumstances, applying for direct loans only, and the net worth of small businesses and farms were incredibly challenging for students and their contributors.
Recommendation: Prepare students for the questions they'll see on the FAFSA. Review questions about dependency before starting the form so students know whether parent contributors are necessary and what specific information must be provided. For asset-related questions, it can be helpful to direct families to professionals in your community who can provide guidance and support.
The Student Aid Index (SAI) and its connection to financial aid requires explanation. Changing EFC to SAI has not clarified how financial need and federal eligibility are determined, and negative SAIs add to the confusion.
Recommendation: Discuss early what students and families can expect throughout the financial aid process. Lay the foundation for understanding how the FAFSA operates, its significance, and what the SAI determines. Encourage students to review their FAFSA submission summary to familiarize themselves with their SAI before the financial aid offer season.
The 24-25 FAFSA created an incredibly challenging financial aid process for everyone involved, but parts of the form showed promise of a better, simpler FAFSA. While we're hopeful for improvements in the 25-26 FAFSA and beyond, it's important for us, as student supporters, to collaborate closely and ensure we're offering the right help.
If you are interested in debriefing the 24-25 FAFSA and planning for 25-26, sign up for one of the webinars below to continue the conversation.
Learnings from the 24-25 FAFSA and Preparing for 25-26 - August 21, 2024
Learnings from the 24-25 FAFSA and Preparing for 25-26 - September 12, 2024
There is still a significant amount to learn about next year. For now, we are assuming that the FAFSA will open on October 1st and that it will largely resemble this year's version, but with fewer technical issues and an FSA ID process that works for everyone. Here are a few key insights and considerations for next year:
Start the FSA ID creation process early. Because creating an FSA ID is key to completing the FAFSA, starting this process early will allow time to resolve any identity verification issues.
Recommendation: Anyone with an SSN should create FSA IDs over the summer. However, those without an SSN should wait to see if FSA will roll out a better process for confirming their identity. Once fall arrives, we recommend everyone create FSA IDs.
Matching contributor information for successful invites is challenging. Having the correct information to invite contributors to the FAFSA can be difficult, especially for students who may not know their parent's FSA ID information.
Recommendation: Whenever possible, have parent contributors start the FAFSA and invite the student to complete their section of the form. This can be a helpful strategy for family financial aid nights or FAFSA fill-in events with parents in attendance. If this is not possible, have the parent take a picture of their FSA ID information or write it down for their student so they have the exact correct information. Try using our FAFSA checklist.
The Direct Data Exchange (DDX) makes sharing tax information easier than the previous IRS DRT, but it lacks transparency for students and families. Although consenting to the DDX simplifies the process, the federal tax information transferred from the IRS remains hidden from those completing the FAFSA. This sometimes leads students and families to question if the DDX worked correctly, what financial information was used to calculate SAI, and whether their current family size matches the tax forms.
Recommendation: Encourage students and families to bring their tax documents when completing the FAFSA. This allows them to verify the information used by the IRS, confirm their family size matches the tax forms, and have a contingency plan for manual entry if there are issues with the DDX.
Some questions on the FAFSA require additional guidance. Questions about unusual circumstances, applying for direct loans only, and the net worth of small businesses and farms were incredibly challenging for students and their contributors.
Recommendation: Prepare students for the questions they'll see on the FAFSA. Review questions about dependency before starting the form so students know whether parent contributors are necessary and what specific information must be provided. For asset-related questions, it can be helpful to direct families to professionals in your community who can provide guidance and support.
The Student Aid Index (SAI) and its connection to financial aid requires explanation. Changing EFC to SAI has not clarified how financial need and federal eligibility are determined, and negative SAIs add to the confusion.
Recommendation: Discuss early what students and families can expect throughout the financial aid process. Lay the foundation for understanding how the FAFSA operates, its significance, and what the SAI determines. Encourage students to review their FAFSA submission summary to familiarize themselves with their SAI before the financial aid offer season.
The 24-25 FAFSA created an incredibly challenging financial aid process for everyone involved, but parts of the form showed promise of a better, simpler FAFSA. While we're hopeful for improvements in the 25-26 FAFSA and beyond, it's important for us, as student supporters, to collaborate closely and ensure we're offering the right help.
If you are interested in debriefing the 24-25 FAFSA and planning for 25-26, sign up for one of the webinars below to continue the conversation.
Learnings from the 24-25 FAFSA and Preparing for 25-26 - August 21, 2024
Learnings from the 24-25 FAFSA and Preparing for 25-26 - September 12, 2024