Navigating the New FAFSA Process: What You Need to Know

• Author: Jean Bergnaum II
• Posted: 2025-10-27

When it comes to financing higher education, the Free Application for Federal Student Aid (FAFSA) has always been the go-to source.

But, like a college freshman on their first day, even FAFSA has to adapt and change.

Recently, there have been some significant adjustments to the FAFSA process that you should be aware of — especially if you're counting those pennies and seeking inflation relief.
 

1. Simpler Application Process

First up, let's chat about simplicity.

Remember the days when FAFSA forms seemed longer than a doctoral thesis? (Okay, slight exaggeration, but you get the point).

Well, those days are dwindling. The FAFSA application has been streamlined with fewer questions. This means less time filling out forms and more time strategizing your financial game plan.
 

2. Updated EFC Terminology

Another notable change? The Expected Family Contribution (EFC) terminology.

EFC used to refer to the amount of money a student's family was expected to contribute toward their education. Now, it's been renamed to the "Student Aid Index" (SAI).

This shift not only sounds friendlier but also aims to clarify its actual purpose: an index number used to determine financial aid eligibility. It doesn't represent the exact amount you'll have to pay.
 

3. Access to Earlier Tax Information

Good news for the planners among us!

You can now access tax return data from two years prior when filling out the FAFSA.

This 'Prior-Prior Year' approach gives families a better idea of their financial standing earlier in the college planning process. It means you can get a head start on understanding your aid eligibility without waiting for the most recent tax season to wrap up.
 

4. Refined Dependency Status Questions

FAFSA's re-evaluation of what it means to be an "independent" student is a breath of fresh air.

The criteria have been revamped, removing some unnecessary barriers. This change can potentially make more students eligible for aid, ensuring that a wider demographic gets the assistance they need.
 

Inflation Relief and FAFSA: The Connection

With these changes, the FAFSA process aims to be more transparent, efficient, and inclusive. But how does this tie into inflation relief? Simple.

An efficient financial aid process can lead to better financial planning.

And in times of economic uncertainty, every bit of assistance, guidance, and clarity can help families navigate the costs of higher education without breaking the bank.