FAFSA is not being eliminated, but the Trump administration has proposed and implemented changes to how it works
The federal government is not shutting down FAFSA or stopping students from filling it out. However, the Trump administration has made changes to FAFSA policy and proposed others that affect how the form works, who can fill it out, and how aid gets calculated. Some changes took effect immediately; others are still in the proposal stage and may or may not become law.
The most significant change so far is the removal of the SAVE income-driven repayment plan for federal student loans, which was set to launch in 2024. The administration also paused the Public Service Loan Forgiveness waiver that had allowed borrowers to count past payments toward forgiveness. On the FAFSA itself, the form was simplified in 2024 to remove questions about family assets and some income details, which changed how financial need is calculated for some students.
Whether additional changes happen depends on Congress, since FAFSA is governed by federal law. Proposed changes require legislative action, not just executive order. This means what happens next is not certain and may take months or years to resolve.
Key Takeaways
- FAFSA still exists and students can still fill it out; the form itself was simplified in 2024 but the process remains the same.
- The SAVE repayment plan was paused, which affects how much monthly payment borrowers owe on existing federal loans after graduation.
- The Public Service Loan Forgiveness waiver ended, so borrowers can no longer count past payments made under other plans toward the 120-payment forgiveness threshold.
- Proposed changes to FAFSA rules require Congress to pass new legislation, so the outcome is not yet decided.
- Students should continue filling out FAFSA as usual, since federal aid still depends on it and the form is still the official way to request aid.
Changes that have already taken effect
In 2024, the FAFSA form itself was redesigned to ask fewer questions. The new version removed questions about family assets, home equity, and some income details. This means fewer families will have their assets counted when the government calculates how much aid they should receive. For some families, this results in a higher aid package; for others, it makes no difference.
The Trump administration also ended the SAVE repayment plan expansion that was scheduled to roll out in phases through 2024. SAVE was designed to lower monthly payments for borrowers with lower incomes by calculating payments as a percentage of discretionary income. Borrowers already on SAVE can stay on it, but the plan is no longer accepting new enrollments and the income-based payment calculation was paused. This means new borrowers and those switching plans will use older repayment formulas that typically result in higher monthly payments.
The Public Service Loan Forgiveness waiver also ended. This temporary program had allowed borrowers to count payments made under any repayment plan toward the 120-payment threshold needed for forgiveness. Now only payments made under income-driven plans count, which means borrowers who made payments under standard or graduated plans will have to restart their count if they switch to an income-driven plan.
Proposed changes that are still being debated
The administration has proposed eliminating income-driven repayment plans entirely and replacing them with a single standard repayment option. This would affect how borrowers calculate their monthly payments after graduation. However, this change would require Congress to pass new legislation, and it is not yet clear whether that will happen or when.
There have also been discussions about changing how FAFSA calculates financial need, potentially by counting more family assets or changing income thresholds. Again, these would require legislative action and are not yet in effect. Some proposals have also suggested changes to federal work-study programs and Pell Grant amounts, but none of these have become law.
What students and families should do right now
If you are a high school senior or current college student, you should fill out FAFSA as usual. Federal aid still depends on it, and the form is still the official way to request grants, loans, and work-study. The simplified 2024 version takes less time to complete than the old form, and you will still receive aid based on your family's financial situation.
If you are already repaying federal student loans, check which repayment plan you are on. If you are on SAVE, you can stay on it. If you are on another plan and want to switch, understand that SAVE is no longer accepting new enrollments, so your options are more limited than they were in 2023. Contact your loan servicer to discuss which plan makes sense for your income and situation.
Keep an eye on news about FAFSA and student loan policy, since Congress may pass new legislation that changes how aid works. However, do not wait for changes that may or may not happen — apply for aid now using the current system.
How changes to FAFSA affect different types of aid
Federal grants like the Pell Grant are not being eliminated. The amount you receive still depends on your family's financial need as calculated by FAFSA. Because the 2024 FAFSA form asks fewer questions about assets, some students may see their calculated need change, which could affect their grant amount.
Federal loans are still available through FAFSA, but the repayment terms may be different depending on which plan you choose after graduation. The removal of SAVE as an option for new borrowers means fewer income-based repayment choices exist than existed in 2023.
Work-study positions are still funded through FAFSA, though the amount available varies by school. Some proposals have suggested cutting work-study funding, but this has not happened yet.
Why FAFSA changes require Congress, not just the president
FAFSA is governed by the Higher Education Act, which is federal law passed by Congress. The president can direct how existing programs are run — for example, by pausing SAVE or ending the Public Service Loan Forgiveness waiver — but cannot unilaterally eliminate FAFSA or make major changes to how aid is calculated or distributed.
To eliminate FAFSA entirely or make sweeping changes to how federal aid works, Congress would have to pass new legislation. This process takes time and requires both the House and Senate to agree. Even when one party controls both chambers, major changes to student aid are often controversial and may not pass.
This is why some proposed changes have not yet taken effect. They are still in the proposal stage and may never become law, depending on what Congress does.
Frequently Asked Questions
Do I still need to fill out FAFSA to get federal aid?
Yes. FAFSA is still the official form used to request federal grants, loans, and work-study. Even though the form was simplified in 2024, it is still required to receive any federal aid. Some states and colleges also use FAFSA information to award their own aid, so filling it out affects your total aid package.
Will my aid amount change because of FAFSA changes?
Possibly. The 2024 FAFSA form asks fewer questions about family assets, which means some families will have a higher calculated need and may receive more aid. Others will see no change. Your school will send you a new aid package based on the updated FAFSA calculation, so you will know the exact amount before you enroll.
If I am already on the SAVE repayment plan, will I lose it?
No. Borrowers already enrolled in SAVE can stay on it. The plan is no longer accepting new enrollments, but existing borrowers are not being removed. If you want to switch plans, you can, but you cannot switch back to SAVE if you leave it.
What happens if Congress passes a law that changes FAFSA?
If Congress passes new legislation about FAFSA or federal aid, schools and loan servicers will be required to follow the new rules. You will receive notice of any changes that affect your aid or loans. For now, follow the current process and watch for official announcements from your school or loan servicer.
Can I still get federal student loans?
Yes. Federal student loans are still available through FAFSA. The types of loans available and the repayment options may change depending on future legislation, but federal loans are not being eliminated.