What actually changed with FAFSA

The Trump administration did not eliminate FAFSA itself. The Free process for Federal Student Aid still exists and students still file it to request federal grants and loans. What changed was how the form worked, what information it asked for, and which students could receive certain types of aid.

In May 2024, the Department of Education under the Trump administration finalized a rule that removed the Saving on a Valuable Education (SAVE) income-driven repayment plan from being available to future borrowers. This plan had been introduced under the previous administration and offered lower monthly payments for federal student loan borrowers. The rule also changed how FAFSA calculated how much money families were expected to contribute toward college costs, a number called the Expected Family Contribution (EFC), which was renamed the Student Aid Index (SAI).

The most significant change for current FAFSA filers was the removal of questions about family size and number of family members in college. These questions had been used to calculate how much aid a family might receive. Without them, the formula for determining aid changed substantially for many families.

Key Takeaways

  • FAFSA still exists and is still required to receive federal student aid, but the form itself was shortened and asks fewer questions about family circumstances.
  • The Expected Family Contribution was renamed the Student Aid Index, and the way it is calculated changed based on the removal of family size questions.
  • The SAVE income-driven repayment plan became unavailable to new borrowers, though existing SAVE borrowers could keep their current plans.
  • Changes to FAFSA affected how much aid colleges determined students could receive, which may have changed the financial aid packages offered for the 2024–2025 school year and beyond.

How the FAFSA form itself changed

The 2024–2025 FAFSA was shorter than previous versions. The Department of Education removed several questions that had been standard for years. Questions about the number of family members, how many were in college, and certain income-related details were cut from the form.

These removals meant that the formula used to calculate the Student Aid Index — the number that tells colleges how much a family is expected to pay — no longer accounted for family size in the same way. A family with five children and a family with one child, earning the same income, might now receive different aid calculations than they would have under the previous formula.

The shortened form was intended to make FAFSA faster to complete, but it also meant less detailed information about each family's situation reached the colleges and the federal government.

Changes to loan repayment options for new borrowers

The SAVE income-driven repayment plan was designed to cap monthly payments at 5 percent of discretionary income for undergraduate loans and to forgive remaining balances after 20 years of payments. Under the Trump administration's rule, new borrowers could no longer enter the SAVE plan starting in 2024.

Borrowers who were already on SAVE before the rule took effect could remain on it. New borrowers were directed to other income-driven plans: PAYE (Pay As You Earn), IBR (Income-Based Repayment), or ICR (Income-Contingent Repayment). These plans have different payment calculations and forgiveness timelines.

This change affected students taking out federal loans for the first time in the 2024–2025 academic year and beyond. It did not change the loans themselves or the interest rates on federal student loans.

What stayed the same about federal student aid

Federal Pell Grants, which do not have to be repaid, continued to be awarded based on FAFSA information. The maximum Pell Grant amount did not change due to the Trump administration's FAFSA modifications. Students still filed FAFSA to request federal loans and grants.

The types of federal loans available — Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans — remained the same. Interest rates on these loans were set by Congress and did not change as a result of the FAFSA modifications.

Colleges still used FAFSA information to determine financial aid packages, though the information they received was different because the form asked fewer questions. Private scholarships and state grants were not affected by changes to the federal FAFSA form.

How these changes affected financial aid packages

Because the Student Aid Index calculation changed, the amount of aid colleges determined students could receive shifted for many families. Some families saw their expected contribution increase, meaning less aid was offered. Others saw it decrease, meaning more aid was offered. The direction and size of the change depended on each family's specific circumstances and income.

Colleges received less detailed family information from FAFSA, which meant some schools had to make assumptions about family size and circumstances when calculating aid. This led to variation in how different colleges approached financial aid for the 2024–2025 school year.

Students and families who filed FAFSA for 2024–2025 and beyond saw different financial aid packages than they would have received under the previous formula. Comparing aid offers between schools became more important, since the basis for calculating aid had changed.

What the changes mean for students filing FAFSA now

Students still must file FAFSA to receive federal student aid. The form is still free and still the gateway to Pell Grants, federal loans, and federal work-study. Filing FAFSA is still the first step in the financial aid process.

The form takes less time to complete because it asks fewer questions. Students no longer need to provide information about how many siblings are in college or the total number of family members, which were questions on previous versions.

After filing FAFSA, students receive a Student Aid Index instead of an Expected Family Contribution. Colleges use this number differently than they used the EFC, so financial aid packages may look different from year to year or from school to school, even for the same student.

Frequently Asked Questions

Do I still have to file FAFSA to get federal student aid?

Yes. FAFSA is still required to receive federal grants, loans, and work-study. The form changed, but filing it remains the necessary first step. You file FAFSA through fafsa.gov, and it is free.

Will I get more or less aid because of these changes?

It depends on your family's situation. Because the Student Aid Index calculation changed, some families will see higher aid offers and some will see lower ones. The only way to know is to file FAFSA and see what your Student Aid Index is, then compare financial aid packages from the colleges you are considering.

What happened to the SAVE repayment plan?

SAVE is no longer available to new borrowers. If you are taking out federal loans for the first time in 2024 or later, you cannot choose SAVE. You can choose PAYE, IBR, or ICR instead. If you were already on SAVE before the change, you can stay on it.

Does this mean federal student loans are going away?

No. Federal student loans still exist and work the same way. Interest rates, loan types, and the process process through FAFSA have not been eliminated. The changes affected how new borrowers can repay loans and how aid is calculated, not whether loans are available.

Can I still get a Pell Grant?

Yes. Pell Grants are still awarded to students who file FAFSA and meet the income requirements. The maximum grant amount did not change. You still file FAFSA to request a Pell Grant.