The FAFSA Simplification Act, passed by Congress in 2020, significantly changed the federal student aid application process beginning with the 2024–2025 award year. These changes remain in effect for the 2026–2027 aid year and continue to impact how students complete the FAFSA and determine eligibility for financial aid.

Key Changes Currently in Effect

• A shorter, more user-friendly FAFSA form.

• Students may list up to 20 colleges on the FAFSA.

• The FAFSA is available in multiple languages.

• Required use of the IRS Direct Data Exchange (DDX) to securely transfer tax information.

• All required contributors (student, parent(s), or spouse) must provide consent and financial information, if applicable.

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

• The number of family members attending college is no longer considered in the SAI calculation.

• Some students may automatically qualify for a Federal Pell Grant based on income, household size, and other FAFSA information.

• For divorced or separated parents, the FAFSA must be completed using information from the parent who provided the most financial support during the previous 12 months.

• Family farms and small businesses are now reported as assets, although not all reported assets affect aid eligibility.

• Consent to share tax information and FAFSA data is required to determine eligibility for federal student aid.

What Hasn’t Changed

• Students must complete the FAFSA each year to be considered for federal and state financial aid.

• Dependency status rules remain the same.

• The FAFSA continues to use prior-prior year tax information. For the 2026–2027 FAFSA, students will report 2024 income information.

• Questions regarding gender, race, and ethnicity are collected for statistical purposes only and do not affect financial aid eligibility.

Program Eligibility for Federal Financial Aid

Not all programs are immediately eligible for federal financial aid upon approval. Newly approved programs may require additional state and federal approvals before Title IV funding becomes available. Students are encouraged to complete the FAFSA, and Emerald Coast Technical College will provide updates regarding financial aid eligibility for newly approved programs as information becomes available.

Stay Updated

ECTC will continue to provide updates as guidance is released by the U.S. Department of Education. Our Financial Aid Office is committed to helping students and families navigate the financial aid process and is available to answer questions and provide assistance.