FAFSA Simplification

We know there are a few issues that students and families are having as they attempt to fill out the FAFSA, which may not allow them to complete it at this time. We understand—and any delays in filling out your FAFSA will not impact your financial aid. However, you should still try to complete it as soon as you are able to do so. You can check this resource page or the known issues page on the Federal Student Aid site.

If your FAFSA appears as “In review” (meaning it has not been processed) in your studentaid.gov account, no corrections can be made until it is processed. You will receive an email once it is fully processed.

The application for the 2024–2025 FAFSA is designed to be easier to fill out with a substantial reduction in questions. Some key changes:

• The federal Pell Grant eligibility will expand to more students as determined by family size and income
• Both students and parents must create an FSA ID and provide consent for the FAFSA to retrieve their tax information from the IRS through the Direct Data Exchange (DDX)
• In the case of divorced or separated parents, the parent who provided the most financial support in the last calendar year must complete the application
• The number of children in college at the same time will no longer affect eligibility for federal need-based aid

You can get a sense of how much federal student aid you may be eligible for, with the Federal Student Aid Estimator. It takes about 10 minutes, and you can do this before filling out the FAFSA.

The 2024–2025 FAFSA is now available. All students eligible for federal aid should submit it as soon as they are able. Northwestern will not receive your FAFSA from the Department of Education until mid-to-late March.

For admitted MD and JD applicants, if we anticipate that you are eligible for federal loan assistance, it will be estimated on your preliminary financial aid offer once it is released according to the timeline listed on our application instructions. Official financial aid offers will contain finalized eligibility once the FAFSA is received and eligibility is verified.

Contributor is a new term introduced on the 2024-25 FAFSA form. It refers to anyone asked to provide information on a student's FAFSA form, i.e., the student, the student's spouse, a biological or adopted parent, or the parent's spouse (stepparent).

The student's or parent's answers on the FAFSA will determine which contributors (if any) will be required to provide information.

These contributors will be invited to complete their portion of the FAFSA form by entering their name, date of birth, Social Security Number, and email address. They must also provide personal and financial information in their sections of the FAFSA form.

Contributor receives an email informing them that they have been identified as a contributor.

Contributor creates a StudentAid.gov account if they do not already have one.

Contributor logs in to the account using their FSA ID account username and password.

Contributor reviews information about completing their section of the FAFSA form.

Contributor provides the required information on the student's FAFSA form.

If a required contributor refuses to provide their information, it will result in an incomplete FAFSA form and the student will become ineligible for federal student aid.

Students that live with a single/divorced/widowed parent and receive the most support from that parent, will report only one parent on the FAFSA.

The parent included in the FAFSA as a contributor must be the parent who provides the greater portion of the student's financial support. If that primary parent is remarried, the income of that parent's spouse (stepparent) will also be required.

According to the Future Act, all students and contributors must provide consent to the following:

Have their federal tax information transferred directly into the FAFSA form via direct data exchange with the IRS;

Have their federal tax information used to determine the student's eligibility for federal student aid; and

Allow the U.S. Department of Education to share its federal tax information with postsecondary institutions and state higher education agencies for use in awarding and administering financial aid.

Important: Even if students or contributors do not have a Social Security Number, did not file taxes, or filed taxes outside of the U.S., they still need to provide consent.

If a student or required contributor doesn't provide consent to have their federal tax information transferred into the FAFSA form, the student will not be eligible for federal student aid—even if they manually enter tax information into the FAFSA form.

Information about how federal tax information will be used and the consequences of not providing consent will be included on the FAFSA form.

Legal parents must provide consent to transfer federal tax information, even if one of the parents did not file or had no income. If parents fail to provide consent, the student will not be eligible to receive federal student aid.

All students and contributors must create a StudentAid.gov account to complete the FAFSA form online. Students and contributors will use their FSA ID account username and password to log in to their accounts. If you or your contributor already have an FSA ID, you will use your existing FSA ID username and password.

Even if a parent or spouse contributor does not have a Social Security Number (see below), they can still get an FSA ID username and password to fill out their portion of the student's FAFSA form online.

No. The FSA ID process is not changing. It is better that parents and students can create an FSA ID username and password to have ready when completing the FAFSA. If you (or your contributor) already have an FSA ID, you will use your existing FSA ID username and password.

For those who have a Social Security Number (SSN) , an FSA ID username and password can be created starting with the SSN. Other information required is full name and date of birth. You will also need to create a memorable username and password and complete challenge questions and answers to retrieve your account information if you forget it. You'll be required to provide your email address or mobile phone number when you create your FSA ID. Providing a mobile phone number and/or email address that you have access to will make it easier to log in to ED online systems and allow you to verify your FSA ID username and password before using it on the FAFSA and additional account recovery options.

If the parent you indicate on the FAFSA (primary parent) is the parent who remarried, it will depend on how they filed taxes. If they filed jointly, only one parent needs an FSA ID. If they filed separately, both the primary parent and spouse will need their own FSA ID.

No. You can retrieve your existing FSA ID if you forgot your username and password. Please see the following U.S. Department of Education website regarding assistance with accessing an existing FSA ID account.

This can vary. It is possible to create an FSA ID and it will be ready to use once you verify it. It is also possible that after completing the FSA ID creation steps (including verifying it), you will be instructed by the online FSA ID portal to wait 24-48 hours to use your FSA ID.

We recommend creating your FSA ID several days before starting the FAFSA form. FSA IDs made on the day of FAFSA completion might work but will not have full functionality yet, like using the Direct Data Exchange (FADDX) to transfer federal tax information (FTI).

Two-step verification, a form of multi-factor authentication (MFA), helps protect your StudentAid.gov account with additional protection from fraud.

Yes! For example, a student and parent cannot use the same phone number for MFA.

This depends on the family's situation. For example, if a student has married parents filing taxes separately, both parents will need to make an FSA ID.

The 2024-25 FAFSA requires individuals – regardless of their citizenship status – to have an StudentAid.gov account to access and sign the FAFSA form. Your parents' citizenship status does not affect your eligibility for federal aid. 

Individuals who do not possess an SSN will be required to complete the StudentAid.gov account creation process specifically for those without a SSN:

Step 1: Visit StudentAid.gov, select “Create Account” and complete all steps, including answering 1-4 knowledge-based verification questions via TransUnion®.

Step 2: Upon completing the Create Account process, the individual will see a confirmation page with the results of identity verification. If the TransUnion® process is unsuccessful, the individual will be informed that FSA was unable to verify their information and to contact the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243. The individual will receive an email from FSA for next steps and verify their identity.

Step 3: Once the individual contacts FSAIC, FSA will send a verification email, which will include guidance on unexpired acceptable documentation (listed below) to verify their identity. Individuals will also be required to submit an attestation and validation of identity form along with their approved identity documentation. 

Acceptable Documents to Establish Identity:

Provide one (1) of the following:

U.S. Driver's License
U.S. State/City Identification Card
Foreign Passport

OR

Provide one (1) set of documents:

Municipal Identification Cards + utility bill
Community ID + utility bill
Consular Identification Cards/Matricula Consular+utility bill

Step 4: Upon receipt of the email that FSA was unable to verify identity, the individual is required to submit one or a combination of their unexpired acceptable documentation from the list above and a signed attestation form to: IDVerification@ed.gov.

Step 5: FSA will review submitted documentation to match the information provided during the Create Account process. If there is a successful match, FSA will send an email indicating identity has been verified and their account FSA ID username and password can be used to log in at StudentAid.gov and complete the FAFSA.

Starting 2024-25, a separate signature page will no longer exist. There are two alternative options for contributors to provide consent who do not want to or refuse to create an FSA ID:

The first example would be the student applying using the paper FAFSA and obtaining wet signatures from all contributors, including the parents, who also affirm their consent.

The other option is for the student to complete their section and self-report information for the parent section on the FAFSA form. When the student submits their FAFSA form without the parent's signature, it will be placed in rejected status by the FAFSA Processing System (FPS). The parent can then provide their signature and consent on a paper copy of the FAFSA Submission Summary. This method is not recommended, if avoidable, due to the complexity and resulting increased processing time.

The Future Act requires that every contributor on the FAFSA provide consent to share their taxes information in the application so that the IRS can share this information with Federal Student Aid (FSA). All parties whose Federal Tax Information (FTI) is included on a student’s FAFSA form must consent annually.

The consent will be required when a student submits a FAFSA, chooses Income-Driven Repayment (IDR) when starting loan repayment, or submits the Total and Permanent Disability discharge (TPD) within the U.S. Department of Veterans Affairs for totally and permanently disabled students.

The consent is necessary not only for the U.S. Department of Education to request federal tax information from the IRS but also to use that FTI in the federal student aid application process (i.e., disclose that information to certain eligible entities, such as higher education institutions).

If a student, spouse, or parent does not provide consent on the FAFSA, the Student Aid Index (SAI) will not be calculated, and the student will not be eligible for financial aid.

According to the IRS tax year 2022, these are the thresholds by filing status. If an independent student (and spouse, if married), or a parent of a dependent student, were not required to file a federal income tax return for 2022, then the student will automatically receive a Student Aid Index (SAI) equal to –1500. They still need to provide consent when submitting the FAFSA so the IRS can confirm to Federal Student Aid (FSA) that the student, parents, and spouse did not file taxes.

No. Starting FAFSA 2024-25, the DRT will no longer exist. After the student, spouse, and/or parent provides consent to the Direct Data Exchange (FADDX) via the FAFSA completion process, the Federal Tax Information (FTI) will be linked to the application contributor. Federal Student Aid (FSA) will now directly transfer Federal Tax Information (FTI) from the IRS into the FAFSA form as long as the user has provided FSA with consent to do so.

All users identified as required contributors on a particular FAFSA form will be prompted to provide consent for the IRS to use their Federal Tax Information (FTI). This consent is required to retrieve FTI from the IRS to calculate the student’s aid eligibility. If any required contributor to the FAFSA form does not provide consent, submission of the form will still be allowed. However, a Student Aid Index (SAI), which replaces the Expected Family Contribution (EFC), will not be calculated.

Starting with the Simplified FAFSA, students will determine which parent(s) to report based on which provides the most financial support. This determination will not be impacted by if the parent(s) reported the student on their taxes. The reported parent(s) will provide consent to transfer their tax data even if they do not claim the student on their taxes.

Yes. If the parent providing more financial support is remarried, the stepparent’s tax information is required.

Office of Financial Aid staff can talk directly with the parent or stepparent to explain why that information is needed and answer any questions, which sometimes puts them at ease about how their information will be used. Our staff cannot provide tax advice.

Parents (or independent students) are the best sources for this estimate; they can consult their accountant or other financial professional if they have access to one, to estimate the amounts to report.

Being self-employed shows as business income on tax returns. But it depends on the type of work whether or not they will have to report any assets associated with their business.

Yes, Federal Tax Information (FTI) can be transferred. Starting 2024-25, when the student, spouse, parent, and/or stepparent provide consent, the IRS’s FTI will include the information from an amended tax return.

After you provide consent on the FAFSA, if the IRS cannot transfer your Federal Tax Information (FTI) to your FAFSA application, the application will allow you to self-report it. Self-reporting your tax information on the FAFSA does not override the requirement for each required contributor to provide consent on the FAFSA form. They will need to both 1) provide consent and 2) have their tax information submitted, either directly from the IRS or self-reported manually, on the FAFSA form.

Any individual who is a contributor to the FAFSA application must provide consent. This includes parents and independent students, regardless of their tax filing status. Generally, the parents of independent students are not contributors and would, therefore, not need to provide consent.

Starting 2024-25, FAFSAs submitted online must be completed online, including all required signatures. This means if a signature is missing, the applicable parent or the contributor must obtain an FSA ID to complete their section and sign the FAFSA.

Starting 2024-25, parents without a Social Security Number may create an FSA ID for use in completing and signing the FAFSA. Please see the following U.S. Department of Education webpage regarding creating an FSA ID: Create Account | Federal Student Aid.

There is no longer an option to print and submit a signature page to complete an online FAFSA and financial aid administrators will not be able to submit FAFSA signature forms on students’ behalf.

Students and parents will be required to have an FSA ID to complete the FAFSA application, including consent and signature, online. If they choose to mail a paper FAFSA, all contributors (student and parents) will need to provide consent on the paper FAFSA, provide original signatures (i.e. wet signatures), and mail the paper FAFSA to the U.S. Department of Education address as indicated on the paper application. This method is not recommended due to its complexity and resulting increased processing time.

Identity theft or fraud are the most likely reasons for the IRS not providing tax information for the applicant or the contributor. If the contributor has been flagged by the IRS, possibly due to identity theft or a breach of some sort to their information, then the IRS will notify the FAFSA processors via an electronic code indicating they are unable to provide the data. The FAFSA processors will notify you if this occurs.

There is no longer a separate signature page, and there will not be a consent signature option on paper. There are two alternative options for contributors to provide consent who will not or cannot create an FSA ID. One option is to submit a paper FAFSA form completed by all contributors and mailed to Federal Student Aid. This method is not recommended due to its complexity and increased processing time.

The Student Aid Index (SAI) is replacing the term Expected Family Contribution (EFC). The SAI brings a change in the methodology used to determine aid.

The SAI is a number used to determine eligibility for federal need-based aid. It is calculated using information the student (and contributors, if required) provides on the FAFSA form. The SAI will replace the Expected Family Contribution (EFC) starting in the 2024-25 award year. A student’s SAI can be a negative number as low as -1500.

The following formula is used to calculate your federal financial need.

Calculated Need = Cost of Attendance (COA) – Student Aid Index (SAI) – Other Financial Assistance (OFA)

The Student Aid Index (SAI) represents a change in the methodology used to determine aid.

For example:

Child support received will now count as an asset instead of income.

Family farms and small businesses will now count as assets.

The number of family members in college is no longer considered in the needs analysis formula, but it is still a required question on the FAFSA form.

Students may qualify for a maximum Federal Pell Grant based on family size, adjusted gross income, poverty guidelines, and tax filing status. Students qualifying for a maximum Federal Pell Grant will have a Student Aid Index (SAI) between –1500 and 0.

Students who do not qualify for a maximum Federal Pell Grant may still be eligible if their calculated SAI is less than the maximum Federal Pell Grant award for the award year. The student’s Federal Pell Grant offer will be equal to the maximum Federal Pell Grant for the award year minus their SAI.

Students whose SAI is greater than the maximum Federal Pell Grant award for the award year may still be eligible for a “minimum” Federal Pell Grant based on family size, adjusted gross income, and poverty guidelines.

According to the IRS tax year 2022, these are the thresholds by filing status. If parents of a dependent student or an independent student (and spouse, if married) were not required to file a federal income tax return for 2022, the student will automatically receive a Student Aid Index (SAI) equal to –1500.

For the 2024-25 award year, some financial information previously considered income will be considered as assets. Also, some information not requested previously, such as the family’s small business, will no longer be excluded from asset reporting.

Students with a negative or 0 SAI will be eligible for the same (maximum) amount of Federal Pell Grant. The difference is that the negative -1500 SAI indicates the student has a higher need than the student with 0 SAI, which can be used for the priority awarding of other grants with limited funding, such as the Federal Supplemental Educational Opportunity Grant (FSEOG).

It will be based on the family size that the family entered, if different from the taxes. In this situation, students may have to provide additional information if selected for verification.