FAFSA Simplification
2021 and 2022 Fiscal Year Student Aid Amounts, Including Changes to Federal Methodology, FAFSA, Pell Grants for Incarcerated Students, Direct Loans, and other Changes
Significant changes to federal student aid policy, including simplifying the Free Application for Federal Student Aid (FAFSA), expanding Pell Grant eligibility to incarcerated students, and the repeal of limitations on subsidized loan eligibility for undergraduate Direct Loans were attached to the FAFSA Simplification Act which was part of a larger bill called the Consolidated Appropriations Act, 2021.
A subsequent appropriations act (Consolidated Appropriations Act, 2022) authorized funding for fiscal year 2022 Pell Grants and made technical changes to the FAFSA Simplification Act.
Analysis of 2022 FAFSA Simplification Technical Amendments
Analysis of 2021 FAFSA Simplification Provisions
NASFAA Resources
FAFSA Simplification Case Studies
This series of case studies demonstrates how changes to the Pell grant eligibility and Federal Methodology formulas will impact students and families under different circumstances and compares outcomes to the current methodology for comparison.
FAFSA Simplification Implementation Checklist for Schools
This checklist was created to help institutions plan for implementation of the FAFSA Simplification Act in 2024-25.
Student Aid Index Modeling Tool (NASFAA members only)
This downloadable tool allows users to import their students' data to calculate estimated Pell grant eligibility and estimated SAIs under the new methodology. It allows for comparison to current Pell grants and EFCs so institutions can prepare for the impacts of FAFSA simplification on their campuses.
Legislative Changes to Federal Methodology and the Pell Grant Program, 2021+
This chart summarizes changes to the Federal Methodology formula and Pell grants from 2021 through the 2024-25 award year.
This chart summarizes changes from the FAFSA Simplification Act that are unrelated to the FM formula and Pell grant eligibility.
Timeline of Effective Dates from the 2021-22 Consolidated Appropriations Acts
This timeline provides effective dates for provisions of the FAFSA Simplification Act and subsequent technical corrections.
2024-25 Federal Methodology and Pell Formula Changes Flowchart
This flowchart shows how applicant data will flow through the new Pell grant formula and Federal Methodology formula to determine a student's Pell grant award and Student Aid Index.
- On-Demand Webinar: FAFSA Simplification (NASFAA members only)
- Removal of Number in College Yields More Equitable, Simple Application Process
- Q&A on Changes to Federal Student Aid Policy Included in Consolidated Appropriations Act, 2021
- Statement on Changes to Federal Student Aid Policy in FY 2021 Spending Bill
External Resources
- *NEW* GEN-22-15 - FAFSA® Simplification Act Changes for Implementation in 2023-24
- H.R. 2471 - Consolidated Appropriations Act, 2022
- H.R. 133 - Consolidated Appropriations Act, 2021
NASFAA Today's News Coverage
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FSA Unveils 2024-25 Draft Student Aid Index and Pell Grant Eligibility Guide
November 22, 2022 - Federal Student Aid (FSA) on Monday released the 2024-25 Draft Student Aid Index (SAI) and Pell Grant Eligibility Guide, which contains details about the transition from the expected family contribution (EFC) to SAI and the methodology for determinin... -
FSA Issues Guidance on 2023-24 Implementation Items from FAFSA Simplification Act
November 8, 2022 - Federal Student Aid (FSA) on Friday issued guidance on how it will implement several items from the FAFSA Simplification Act for the 2023-24 award year. The document provides information financial aid offices can use to implement the changes to cost ... -
ED Announces Implementation of Repeal of Subsidized Usage Limit Restriction
June 14, 2021 - The Department of Education (ED) in a Federal Register notice and Electronic Announcement said it will early implement the repeal of the limitation on lifetime subsidized loan eligibility, known as Subsidized Usage Limit Applies (SULA), which cu... -
ED Details Implementation Plans for FAFSA Changes
June 11, 2021 - The Department of Education (ED) on Friday announced that it will employ a delayed, phased implementation of the changes made to federal methodology and the FAFSA as part of the Consolidated Appropriations Act, 2021. The statutory deadline for the ch... -
Appropriations Act Restores Pell Eligibility to Incarcerated Students, Establishes Eligibility Guidelines for Prison Education Program
January 26, 2021 - The 2021 Consolidated Appropriations Act included a provision that restored federal financial aid eligibility for incarcerated individuals and established participation requirements for prison education programs. Until the act was signed in December,... -
Enactment of Omnibus Expected in the Coming Days
December 23, 2020 - With Congress on Monday having cleared a massive package of legislation that would fund the federal government for fiscal year (FY) 2021, provide additional pandemic relief to higher education, and make a number of other higher education-related poli... -
Congress Releases Bipartisan Year-End Spending Deal, FAFSA Simplification, COVID Relief, and Other Student Aid Provisions
December 21, 2020 - In a marathon push before the end of the year, congressional leaders on Dec. 21, 2020, introduced the Consolidated Appropriations Act, 2021, a massive package of legislation that would avert a government shutdown and fund the federal government for f... -
NASFAA Deep Dive: Changes to Federal Methodology, Other Student Aid Changes From Spending Bill
December 21, 2020 - Several major student aid policy provisions were attached to the fiscal year 2021 Omnibus spending bill, through the Consolidated Appropriations Act, 2021, including FAFSA simplification, expanding Pell Grant eligibility to incarcerated students and ...
