The FAFSA Simplification Act, passed by Congress in 2020, has already reshaped the way students apply for and receive federal student aid. Beginning with the 2024–2025 FAFSA, the form and eligibility rules were overhauled. For the 2025–2026 aid year, these changes remain in place and continue to affect how students complete the application and qualify for aid.

Key Changes That Are Now in Effect

• Shorter, more user-friendly FAFSA

• Students can list up to 20 colleges (previously 10)

• FAFSA is available in more languages

• Required use of the IRS Direct Data Exchange (DDX) to import tax information

• All “contributors” (student, parent(s), or spouse) must provide financial data if asked

• Student Aid Index (SAI) replaced the Expected Family Contribution (EFC)

• The number of family members in college is no longer used in SAI calculations

• Some students are now automatically eligible for a Pell Grant

• For divorced or separated parents, the FAFSA must be completed by the parent who provided the most financial support in the last year

• Family farms and small businesses must now be reported as assets

What Hasn’t Changed

• The FAFSA is still required every year for federal and state financial aid consideration

• Dependency status rules remain the same

• FAFSA still uses prior-prior year tax data (for 2025–26, you’ll report 2023 income)

• Questions about gender, race, and ethnicity are included only for statistical purposes and do not affect aid eligibility

Stay Updated

ECTC will continue to update students as the U.S. Department of Education makes further adjustments. Our Financial Aid Office is here to help you navigate these changes and make the process as smooth as possible.