A new, streamlined federal financial aid form is coming soon – but when, exactly, is still up in the air.

The Department of Education recently announced that the overhauled Free Application for Federal Student Aid, or FAFSA, will launch online by December 31 – nearly three months later than its usual launch date.

Officials predict the changes will allow more than half a million additional students, including nearly 8,000 more in Alabama, to receive federal aid for the 2024-25 award year.

Here’s what we do know about the new FAFSA form, and how Alabama families can start preparing over the holidays:

Do I have to fill out the FAFSA?

Students must submit FAFSA forms for each year that they’re requesting federal aid.

In Alabama, high school students must complete the form, or complete a waiver, to graduate. FAFSA completion is also required to get state aid in Alabama.

“Completing the FAFSA gives students access to the largest source of financial aid for education after high school,” said Chandra Heard of Alabama Possible, a group that’s working to get more Alabama students to apply for financial aid.

Recent efforts to improve FAFSA completion have saved Alabama students millions of dollars, data shows.

In 2021, Alabama students left an estimated $66.7 million in unclaimed Pell dollars on the table, according to a recent analysis by the Alabama Commission on Higher Education, which used figures from the National College Attainment Network.

In 2023, 29,792 Alabama students have completed the FAFSA – a 19% jump from 2021, where just under 25,000 students filled out the form, according to ACHE. The increase alone, officials said, saved students an estimated $14.4 million in unclaimed Pell dollars.

What’s changing?

• Fewer questions: The new form will have 36 questions instead of 108.
• A streamlined process: Families will be able to automatically import income data from tax records, eliminating the need to self-report earnings and assets.
• New aid calculations: The new formula will place a greater emphasis on wealth instead of cash flow – meaning students who exceed the income threshold but don’t have a lot of property or assets could now be eligible for more student aid. This might mean changes for students whose families have farms or businesses.
• Separate accounts for parents: Questions are based on the applicant’s role, so students and guardians will have to create separate accounts to answer separate sets of questions on the form.
• Expanded access to aid: Incarcerated students and students who have been convicted of drug-related offenses are now also eligible for aid.

Check out this video series from the U.S. Department of Education to learn more about the updates and find answers to common questions.

When is the new deadline?

Typically, the FAFSA form doesn’t close until June 30 of the year you’re receiving federal aid. So for the 2024-25 school year, you’d have until June 30, 2025, to apply for aid for that year.

But different aid deadlines are set by states and individual colleges.

To maximize your chances of receiving the most aid possible, you’ll need to know when your school’s priority deadline is. To learn more, check your school’s website or contact a financial aid advisor at your institution.

Practically speaking, most students should aim to complete the FAFSA in January or February, depending on school’s deadlines, in order to receive an award letter before making a commitment to a college.

The U.S. Department of Education also publishes a list of deadlines to receive state aid. In Alabama, those deadlines are determined by individual colleges.

But just be prepared – It may take a bit longer to get your check this year, since some colleges are already pushing back their distribution deadlines to keep up with a potential backlog of aid applications. It’s best to check with your school if you have any questions.

What can I do in the meantime?

The form is scheduled to launch by Dec. 31. Prospective students can keep an eye out for updates at studentaid.gov.

In the meantime, applicants can go take the following steps:

• Set up your Federal Student Aid ID: This will allow you to securely and confidentially access their FAFSA once it launches. The FSA ID also unlocks other opportunities for aid, as well as work-study possibilities. To create an account, you’ll need your social security number and a mobile phone number or email address. Just make sure to remember your username and password so you can access the form when it’s available.
• Find out who will need to be contributors: If you’re a dependent student, you will report your and your parents information. If you’re an independent student, you will report your own information, and, if you’re married, your spouse’s. In each case, contributors will need to create their own StudentAid.gov account.
• Gather materials: You should only need your social security number and an email address or phone number to complete the form, since the new FAFSA will upload tax information from the IRS automatically. But just in case, it’s a good idea to keep any important financial and personal documents handy – like tax and bank statements, child support documents, and information about assets like family businesses or farms.
• Calculate your aid: Applicants can use this calculator to get an early estimate of what their federal student aid could be before even submitting their form.

It’s also never too early to look for local scholarships and get to work on your college applications.

Check out these toolkits from the Ed Lab for tips on how to find funding and ensure your application stands out.

• 8 tips for Alabama students working on college applications, from university admissions experts
• $1.4 million in scholarships? Tips on paying for college, finding financial aid