On Friday, June 11, the Department of Education informed Congress that the FAFSA Simplification will need to be delayed until the school year 2024-25.  This is a full-year delay from the original target date of the school year 2023-24.  The delay is due to the technology upgrades needed to complete the changes.

FAFSA Simplification was approved as part of the Consolidation Appropriation Act of 2021 passed in December 2020.  According to the announcement some of the changes will still occur as planned and this delay is related to the process.

Here is the list of major items in the FAFSA Simplification:

• Form Submission Process
  • Question reduction with IRS Feed
• FAFSA calculation changes
  • Parent Income Protection changes
  • Divorce and Separated rules change
  • Number of Children discount elimination
  • Grandparent 529 Impact
• Name Change to Student Aid Index (SAI) from Expected Family Contribution (EFC)
• Cost of Attendance rules changes
• Increase of Pell Grants transparency
• Early FAFSA Awareness
• Elimination of Subsidized Usage Limit Applies (SULA)
• Forgiveness of HBCU Capital Financing Loans

As part of the FAFSA Simplification Delay announcement, a few detailed items were identified as being implemented for FAFSA school year 21-22.  These are individual items under some of the larger items listed above:

• Elimination of Subsidized Usage Limit Applies (SULA)
• Elimination of Drug Conviction Negative Consequence
• Elimination of Selective Service Requirement for Males

It is unclear at this time which other items will be implemented before the technology upgrade is completed.  The announcement stated that some of the items could be implemented before the original goal of the school year 2023-24.

PayForED will keep you up to date on FAFSA Simplification delays and changes as they develop.

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