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How to Apply for Financial Aid

To be considered for federal student aid for the 2024-2025 award year, you need to complete a Free Application for Federal Student Aid (FAFSA).

Filling out the FAFSA can be an intimidating prospect. And so, to help alleviate some of the confusion related to the FAFSA form, Congress in late 2020 approved changes to the FAFSA, as well as the formulas used to determine financial need. These changes are set to take effect for FAFSA filers later this year.

Over the past three years, the Department of Education has implemented these changes in phases, beginning with the 2021-22 Award Year. The final phase of the Department’s implementation of the changes required by the Act will occur in the 2024-25 Award Year.

One of the major changes will be to the FAFSA form itself, which is expected to be simplified, with the number of questions being reduced from 108 to 46.

Due to the introduction of the new form The Department of Education announced the new 2024-25 FAFSA® will be released in December 2023, two months after the usual release date of October 1.

Transition from EFC to SAI

The Act requires that schools transition from the Expected Family Contribution (EFC) to the Student Aid Index (SAI) beginning in the 2024-25 Award Year. The SAI is a number that determines each student’s eligibility for certain types of federal student aid. An applicant’s SAI is calculated using modified need analysis formulas outlined in the Act. These formulas use information that applicants provide on the FAFSA® form and, in most cases, federal tax information (FTI) that is retrieved directly from the Internal Revenue Service (IRS).

In the end, these changes will potentially simplify the FAFSA filing process as well as affect the amount of aid certain students receive.

State Aid Deadlines

Many states and colleges have earlier deadlines for applying for state and institutional financial aid. You can find your state’s deadline at Check with your college about its deadlines.

Because of the variation in state and college deadlines, it is highly recommended that you fill out the FAFSA as soon as you can after December 1, 2023 to ensure that you do not miss out on available aid.

Students Use Earlier Income Information

When filling out the FAFSA on the Web, you will use the IRS Data Retrieval Tool (IRS DRT). This option is available whether you filed your taxes electronically or by mail.

Your income and tax information will be retrieved from the prior year’s return. (For the 2024-25 FAFSA, tax information from your 2022 return will be used.)

The IRS DRT takes you to the IRS Web site, where you will need to log in by providing your name and other information exactly as you provided it on your tax return. At the IRS site, you can preview your information before agreeing to have it transferred to your FAFSA.

Once you have completed the personal information on the FAFSA, follow the instructions for listing the colleges you wish to have the information sent to. If you are applying online, the code number will automatically be inserted according to a prompt. If you are filing a paper application, you can get the code from, the high school guidance office, or from the specific college. The application will also ask you what state you live in and based on this, will send the information to your state’s financial aid agency so you will be considered for state scholarship and grant programs. Finally, the information will automatically be sent to the Pell Grant program.

Family Contribution

The Department of Education (ED) provides all of these agencies and institutions with an analysis of the information you have provided on the FAFSA according to a Congressional formula. The formula is used to determine how much a family might be expected to pay toward the applicant’s education and be used to determine whether or not the student has “financial need,” which is what defines eligibility for most financial aid programs.

The formula takes into consideration such things as family income, assets, number of people in the family, federal and state taxes paid, and a number of other factors. The calculation does not factor in equity in your home or funds in a 401K or other retirement accounts.

Families should be aware that an asset reported in the parents’ name is assessed at a lower rate than if that same asset were reported in the student’s name. This figure can make a considerable difference in the amount the student will be expected to pay.

The FAFSA does not provide space to explain any unusual circumstances (unemployment, large medical bills, tuition for other children in elementary or secondary school). These circumstances should be carefully explained and documented wherever possible and sent directly to the financial aid office of the college to which you are applying. The college financial aid officer will determine whether or not the unusual circumstances will be taken into consideration.

Also note that financial need is a relative figure and will vary depending on each college’s overall costs.

Normally, the FAFSA will ask for income for the student and the student’s parents. In cases where the student’s parents are divorced or separated, or the student is filing as an independent student, meaning that only his or her income is reported, special care should be taken in completing the application to be sure that accurate income information is supplied. Instructions for these and other unusual circumstances are available at

When the financial aid officer receives the analysis, the information is reviewed and any necessary adjustments are made to the evaluation. The adjusted SAI is matched against the college’s cost of attendance (COA) to determine if the student demonstrates financial need. At this point the financial aid officer would notify the student of his or her award or indicate that the student is not eligible for aid.

The applicant will receive a Student Aid Report (SAR), which includes the SAI. The figure usually appears right under the date the report was sent. The student, colleges, and all federal and state agencies receive the same SAI. The SAR also summarizes the information you have provided on the FAFSA. The report will also indicate whether or not you are eligible for a Pell Grant.

Some colleges may require additional applications (either the CSS/Financial Aid PROFILE, available at, or a separate financial aid application specifically for that college) for use in awarding their own aid money. Be sure to check with the colleges to which you are applying to see what applications are required.

Whether you apply for federal, state, or institutional aid, you should be sure to complete all forms accurately and honestly and be sure to submit them before the established deadlines.

Financial Aid “Packaging”

Most colleges combine various types of awards into a “package” in an attempt to meet a student’s financial need. Thus a student with a financial need of $10,000 might be awarded a $7,000 college grant and a $3,000 College Work-Study job. The college also takes into consideration aid that a student has received from other sources. For example, if a student receives a Pell Grant or a state scholarship, the college would take these resources into consideration when determining the student’s financial need. All of these funds would be outlined in the student’s financial aid package.


If the family is not satisfied with a student’s financial aid package, they should appeal to the financial aid office at the college. Simply indicate the student’s strong interest in the particular college and ask if the award can be reviewed, or if there are other sources of aid that might be pursued.


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