In 2024 the Free Application for Federal Student Aid (FAFSA) underwent changes to make the form simpler for students and their families. These efforts toward simplification made it easier for students to fill out the form, and thereby qualify for financial aid. The following changes were made to simplify the FAFSA:
- Cost of Attendance (COA) – In the past, colleges could be somewhat vague about the cost of attending. Now, they’re required to provide more details and approximations of college costs, from books and supplies to transportation.
- Independent Students – It’s easier now to declare oneself as an independent student on the FAFSA. Once independence is verified, it will roll over year-after-year.
- Pell Grant Eligibility – Last year, Pell Grant eligibility was extended to 15% more students.
- Learn about the new FAFSA simplification measures, including a new formula for how students will qualify for aid.
What is Student Aid Index (SAI)?
The Student Aid Index (SAI) replaced the Expected Family Contribution (EFC) formula. Students and parents now use this Student Aid Index (SAI) to estimate the aid offer from the FAFSA for the school year. While the SAI methodology is similar to the EFC, there are different factors now considered when determining the student’s aid. To estimate the Student Aid Index, try our Student Aid Index (SAI) Calculator.
Cost of Attendance (COA) Changes
COA changes will impact a student’s SAI. Here are a few examples:
- Transportation allowances between home, school, and work will be factored into COA. A financial aid administrator will set those figures.
- A student will need to be enrolled at least part-time to receive a personal expenses allowance.
- Room and board allowances must be split into separate costs for housing and meals. Additionally, meal allowances should be calculated for three meals a day.
- Housing allowances cannot be set to zero for students who opt to live at home with their parents.
- An allowance for federal loan fees for both students and parents is mandatory, rather than being left to the discretion of the college.
Being more detailed with COA and providing more allowances will give students and parents a more accurate picture of what it really costs to attend a particular school.
Multiple Students in College Assessed Differently
In the past, the EFC took into account when multiple members of the same household were enrolled in college. The SAI will not make this distinction. The College Investor sums up the impact as follows:
“Previously, the number of dependents in college had two impacts. It divided the parent contribution, and it reduced the income protection allowance. Eliminating the former causes a decrease in financial need. Eliminating the latter causes a slight increase in financial need. The impact of the former is greater as income increases, so it mostly leads to less aid for middle- and high-income families with multiple children in college at the same time.”
Pell Grant Eligibility
The release of the 2025-2026 FAFSA® form in December 2024 by the Department of Education provided the Pell Grant maximum and minimum award amounts so institutions may inform students and families about their eligibility for a Federal Pell Grant. All 2025-2026 Federal Pell Grant awards must be based on these amounts. Pell Grant eligibility will be linked to family size and the federal poverty level, expanding access to federal student aid. Pell recipients may receive more aid, some will receive the maximum Pell Grant.
Restrictions on Pell Grant Eligibility to begin July 1, 2026
Changes to Pell Grants are included in the Big Beautiful Bill passed into law on 7/4/2025. Summary of changes are outlined below:
- Students enrolled less than half-time will not qualify. Full-time enrollment for undergraduate students is typically 12 or more credit hours per semester.
- A Student Aid Index (SAI) over double the Pell Grant maximum disqualifies applicants. Today, the maximum Pell Grant for the 2025-2026 academic year is set at $7,395. The exact figures for any increased totals are usually released by the Department of Education closer to the start of the academic year.
- Foreign income will now count toward eligibility.
Learn more on Finaid: Grants
Negative SAI Will Be Possible
A student’s EFC could never be less than 0. However, the SAI can drop to -$1,500. This helps colleges meet the full amount for a student that may demonstrate significant financial need.
