my529 notes FAFSA changes

my529 understands that applying for higher education can be stressful. We are here to help make that process as smooth as possible. The recent changes to the Free Application for Federal Student Aid (FAFSA) aim to simplify paperwork for all applicants and increase aid to low-income families.

FAFSA connects students to federal aid that includes grants, student loans, and work-study. It also serves as a gateway to state grants or scholarships, school-specific grants or scholarships, and private grants or scholarships that often require FAFSA completion for eligibility.

The form became available as of November 21, 2024, for students to apply for financial aid for the 2025-26 academic year. The highlights from last year’s updates include:

Student Aid Index. Transition to a Student Aid Index rather than the Expected Family Contribution. Similar to Expected Family Contribution, the Student Aid Index is a number calculated to determine how much financial aid the student is eligible to receive. The formula no longer considers how many family members are currently enrolled in higher education.

Federal tax information will be transferred directly from the IRS. Consent and approval are required to allow this automatic transfer, but it saves you from having to manually enter much of the data required in past years.

Grandparent-owned 529s no longer count against the student SAI. Reporting is no longer required for grandparent or third-party accounts, removing the impact a grandparent-owned 529 account has on the Student Aid Index calculation and the student’s resulting financial aid eligibility.

Apply to more schools. The updates from last year doubled the number of schools a student can list on the application to receive their FAFSA information from 10 to 20.

For more information regarding the updates on the FAFSA application, Federal Student Aid offers this video introducing the changes, or you can read our FAQ at my529.org. You may also refer to the FAFSA website for additional information: https://fafsa.gov/.

The FAFSA connects students to qualifying aid, including federal grants, federal student loans, state grants or scholarships, school-specific grants or scholarships, and private grants or scholarships.

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