What changed with FAFSA in 2025

The Trump administration has not eliminated FAFSA itself, but it has made significant changes to how the form works and what information it collects. Starting in 2025, FAFSA no longer asks about your parents' income or assets if you're a dependent student, and it no longer uses the Expected Family Contribution (EFC) calculation that determined how much aid you could receive. Instead, the government now uses a simpler metric called the Student Aid Index (SAI).

These changes mean fewer questions on the form and a faster application process, but they also affect how much federal aid you might receive. The changes apply to the 2025–2026 school year and beyond. If you're filling out FAFSA now, you'll notice the form is shorter than it was in previous years.

The Department of Education under the Trump administration has stated that these changes are meant to streamline the process and reduce what it views as unnecessary questions. However, the practical effect is that some students will see their aid amounts shift, either up or down, depending on their family's financial situation.

Key Takeaways

  • FAFSA still exists and is still required to receive federal student aid, but the 2025 version asks fewer financial questions than previous years.
  • The form no longer requires parental income and asset information for dependent students, which speeds up the application but may lower aid offers for some families.
  • The Expected Family Contribution (EFC) has been replaced with the Student Aid Index (SAI), which uses a different calculation method.
  • Your school will use your SAI to determine your aid package, so changes to how SAI is calculated directly affect how much aid you receive.

How the new FAFSA form differs from previous versions

The 2025 FAFSA removed questions about parental income, parental assets, and student assets for dependent students. In past years, schools used this financial information to calculate how much your family could contribute toward education costs. Without that information, the new SAI is based primarily on your own income (if you have any) and your dependency status.

The form is now shorter and takes less time to complete. You no longer need to gather tax documents for your parents or report savings accounts and investments. For many families, this means a simpler application process. However, schools that previously used detailed financial information to award institutional aid (money from the school itself, not the federal government) may now have less information to work with.

The change also means that families with significant assets or high parental income may see their federal aid amounts increase, because the government is no longer factoring those resources into the calculation. Conversely, some students from lower-income families might see aid decrease if their own income is higher than their parents' would have been counted.

What the Student Aid Index (SAI) means for your aid package

Your SAI is a number that colleges use to determine how much federal aid you receive. A lower SAI generally means more aid; a higher SAI means less. Under the new system, SAI is calculated using fewer variables than the old EFC, primarily your own income and tax information rather than your family's total financial picture.

Schools receive your SAI and use it to build your aid package. They subtract your SAI from the cost of attendance at their school to determine your financial need. That need is then met through a combination of grants (money you don't repay), loans, and work-study. If your SAI changed from the previous year's EFC, your aid package will likely change too.

You can estimate your SAI using the FAFSA4caster tool on the Federal Student Aid website before you submit your actual FAFSA. This gives you a rough idea of what your aid might look like, though the final number may differ slightly.

How this affects students from different income levels

Students from families with higher incomes and significant assets may see their federal aid increase under the new system, because parental assets are no longer part of the calculation. A family with $200,000 in savings, for example, would have seen that factored into their EFC in previous years; now it is not.

Students from lower-income families may see aid change depending on whether their own income is higher or lower than what their parents' income would have contributed to the old calculation. A dependent student who works part-time and earns $10,000 per year will now have that income counted more directly toward their SAI, whereas previously it might have been offset by parental income information.

Independent students (those 24 or older, or who meet other independence criteria) are less affected by these changes, because FAFSA has never asked for parental information for them. Their aid calculations remain largely the same.

What you need to do if you're applying for aid in 2025

Fill out FAFSA as soon as you can. The form opens October 1 each year, and schools process applications on a rolling basis, meaning earlier submissions often receive aid packages sooner. You'll need your Social Security number, driver's license or state ID, and your own tax information (or your parents' if they're claiming you as a dependent for tax purposes, even though you won't report their income on FAFSA itself).

Submit your FAFSA to every school you're considering. Each school uses your SAI differently depending on their own aid policies and funding. A school with more institutional aid money may offer you more total aid than a school with less, even if your SAI is the same.

After you submit FAFSA, schools will send you aid packages. Review each one carefully. The aid package will show grants, loans, and work-study separately. Loans must be repaid; grants do not. Compare the total cost of attendance and the amount you'll actually have to pay out of pocket at each school before deciding where to enroll.

How to learn about you're affected by these changes

The easiest way to see if these changes affect you is to compare your estimated aid for 2025 to what you received in 2024 (if you applied then). Use the FAFSA4caster tool to get a rough SAI estimate, then contact your school's financial aid office and ask how your aid package compares to last year.

Your school's financial aid office can also explain how their specific institution uses SAI to award aid. Some schools supplement federal aid with their own money, and the criteria they use for that institutional aid may have changed in response to the new FAFSA structure. A phone call to the aid office is often faster than trying to decode the details yourself.

If you're a current student, your school should have notified you about changes to how aid is calculated. If you haven't heard anything, reach out to the financial aid office directly. They can walk you through how the changes affect your specific situation.

Frequently Asked Questions

Do I still have to fill out FAFSA to get federal student aid?

Yes. FAFSA is still the gateway to all federal student aid, including grants, loans, and work-study. Without submitting FAFSA, you cannot receive federal aid. The form has changed, but it is still required.

Will I get more or less aid under the new system?

It depends on your family's financial situation. Families with higher incomes and assets may see aid increase. Families where the student has significant income may see aid decrease. The only way to know for sure is to fill out FAFSA and see what your school offers.

What if my parents refuse to give me their tax information?

You no longer need to report your parents' tax information on FAFSA, even if they claim you as a dependent. You only need your own tax information. If you don't have a tax return, you can report your income from W-2s or other documents.

Can I still get aid if my family has savings or investments?

Yes. Parental savings and investments are no longer reported on FAFSA, so they no longer reduce your federal aid may be able to access. However, your school may have its own financial aid forms that ask about assets, so check with the financial aid office about what information they need.

When do these changes take effect?

The new FAFSA structure is in effect for the 2025–2026 school year and all years after that. If you're applying for aid now, you're using the new form. Students who applied in 2024 or earlier used the old EFC system.