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Office of Financial Aid & Scholarships

Financial Aid

FAFSA Simplification

For the latest news and announcements regarding the FAFSA, go to https://studentaid.gov/announcements-events/fafsa-support.

 

Due to the passing of the Free Application for Federal Student Aid (FAFSA) Simplification Act on December 27, 2020, as a part of the Consolidated Appropriations Act of 2021, the FAFSA has undergone major modification starting with the 2024 – 2025 aid year.

Here are some changes to expect:

  • Be prepared!  As defined below under “New Terminology”, all contributors should have a StudentAid.gov account (FSA ID).  
  • The new FAFSA application process will provide a simpler and more streamlined process for students.
  • Eligibility for federal Pell Grant may be expanded compared to previous years.  However, due to the formula no longer including number in college, some students Pell eligibility may decrease compared to previous years.
  • The new FAFSA will also bring with it new terminology. 
  • **Dependent Students** New rules for determining which parent(s) information must be included on the FAFSA and who must consent and sign.

The FAFSA is currently available now for both the 2024 – 2025 and 2025 – 2026 years.

  • For 2024 – 2025, we are currently processing received FAFSA’s. 
  • Once you complete the online FAFSA, you will get a confirmation page along with a follow-up email.
  • For 2025 – 2026, we will begin processing received FAFSA’s in January.  
  • Your PipelineMT will be updated once we receive your FAFSA. If MTSU has been listed as a school of choice, we generally receive the results within 3 – 5 business days.

The FAFSA will feature fewer questions, fewer requirements, and retrieve tax information using a direct data exchange from the IRS instead of the previous IRS Data Retrieval Tool.

  • The FAFSA is introducing the new term contributor, which refers to anyone who is required to provide information on the FAFSA form, including the student, the student’s spouse, a biological or adopted parent, and/or the parent’s spouse (inclusive of step-parent).
    • Being a contributor does not imply responsibility for the student’s college costs.
    • Students will need the contributor’s name, date of birth, Social Security Number (SSN), and email address to invite them to complete the required portion of the FAFSA. 
    • Contributors will need to provide personal and financial information on their section of the FAFSA.
    • If your biological/adoptive parents are divorced or separated from each other, the contributing parent(s) is the parent (and their spouse, if remarried) who provided the greater portion of your financial support during the 12 months immediately prior to filing the FAFSA.   If you did not receive any support from either parent(s) or they both contributed 50% to your support, then it is the parent with the highest income and assets. It is no longer the parent you primarily lived with during the past 12 months.
  • All Contributors–student, student’s spouse (if married), and student’s parents(s) (if a dependent student)–must provide consent to have tax data transferred directly from the IRS to the FAFSA, even if you did not file a tax return.  However, for a dependent student, only the student and one parent(if married) must sign the FAFSA if:
    • for the 2024 – 2025 FAFSA, the parent filed a 2022 tax return as married filing joint and are still married to each other on the date the FAFSA is completed.
    • for the 2025 – 2026 FAFSA, the parent filed a 2023 tax return as married filing joint and are still married to each other on the date the FAFSA is completed.  
  • If consent is not provided by all required parties, the student will not be eligible for federal financial aid.
  • In previous years, transferring IRS data was optional. It is now required.
  • If the IRS is unable to transfer your data, then you will be instructed to manually enter the required information.

  • The Expected Family Contribution (EFC) will now be referred to as the Student Aid Index (SAI).  It is a new need analysis formula used to determine financial aid eligibility.  Unlike the EFC, the SAI may be a negative number.

  • The Student Aid Report (SAR) will now be referred to as the FAFSA Submission Summary. This is the summary submission document you receive after completing the FAFSA. 

  • Typically, every contributor must have their own account username and password in order to submit the FAFSA online. 
  • However, in the case of a dependent student whose parents filed a joint return for the applicable tax year and are still married at the time the FAFSA is completed, only one of the parent is considered a contributor and needs an account username and password.
  • If the student is now married or remarried after the tax year required on the FAFSA, then the student and the student’s spouse will need an account username and password.
  • If the student’s parent is now married or remarried after the tax year required on the FAFSA, then the student, biological/adoptive parent, and step-parent will need an account username and password.
  • A contributor who does not have a Social Security Number should now register to receive an account username and password.  Instructions can be found at https://studentaid.gov/apply-for-aid/fafsa/filling-out/help/fsa-id-list.
  • Go to https://studentaid.gov/fsa-id/create-account/launch to create an Account Username and Password.  An email address can only be attached to one account and cannot be used by multiple users.

  • The FUTURE Act Direct Data Exchange (FA-DDX) is the system replacing the IRS Data Retrieval Tool (DRT) to transfer an individual’s Federal Tax Information to the FAFSA. Once consent is given by the contributor(s), the FA-DDX allows tax information to be transferred from the IRS to the FAFSA.

  • If the parents of a dependent student are unwilling to provide their information on the FAFSA, but the student doesn’t have an unusual circumstance, the student can choose to have their school determine their eligibility for a Direct Unsubsidized Loan only.
  • The school will have to document that the parent is unwilling to complete the FAFSA.  Typically, the parent will sign a form indicating their refusal to complete the FAFSA.
  • This will prevent the student from receiving any federal or state financial aid other that Direct Unsubsidized Student Loans.

  • If students indiciate on the FAFSA that they have unusual circumstances that prevents them from contacting their parent or that contacting their parents would pose a risk to the student, the FAFSA will be processed based on a provisional independent status.
  • However, you do not qualify for aid under a provisional independent status.
  • An MTSU Financial Aid administrator must verify the student’s circumstances and determine whether a dependency override is warranted.
  • A student may be experiencing unusual circumstances if they
    • left home due to an abusive or threatening environment;
    • are abandoned by or estranged from their parents and have not been adopted;
    • have refugee or asylee status and are separated from their parents, or their parents are displaced in a foreign county;
    • are victim of human trafficking;
    • are incarerated, or their parents are incarcerated and contact with the parents would pose a risk to the student; or
    • are otherwise unable to contact or locate their parents and have not been adopted.
  • Contact the MT One Stop if one of the above circumstances apply to you.

  • The number of family members in college will still be asked on the FAFSA, but it will no longer be used in determining the Student Aid Index (SAI).
  • This may mean that students who have several siblings in college at the same time may see a reduction in their federal Pell Grant eligibility than in past years.

It is anticipated that the new Student Aid Index (SAI) calculation will increase the number of undergraduate students who may qualify for a federal Pell Grant overall and may also increase the amount received.

Before completing your FAFSA, here are some things you can do to prepare:

  • Create an account username and password on the Federal Student Aid website and assist contributors, such as your parent(s) or spouse, in creating their own account username and password.
    • An account username and password provides access to the Federal Student Aid’s online system and serves as your electronic signature.
    • You can sign up for informational emails and opt into informational text messages under Communication Preferences within your user account (i.e., FSA ID) to receive up to date notifications and learn about upcoming changes to the FAFSA.
  • Complete the FAFSA as soon as it opens.  
  • Use the Federal Student Aid Estimator to find out how much federal student aid you may be eligible for.

The Federal Student Aid Estimator provides students and families an estimate of their federal financial aid using the new Student Aid Index (SAI). 

Please note: This is not a FAFSA. Students will need to complete a FAFSA when it becomes available.

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