NASFAA Release Data Sharing White Paper; Updates Decision Tree
By Jill Desjean, Director of Policy Analysis
NASFAA is pleased to announce the release of its long-awaited revised data sharing white paper, developed with the assistance of EmpowerED Higher Education Consulting (EHEC). The white paper has been updated significantly and reflects all of the changes to institutional data sharing authority stemming from the FAFSA Simplification Act, including all guidance issued by the Department of Education (ED) to date. NASFAA’s data sharing decision tree is also updated.
The white paper provides background on each of the federal data privacy laws that apply to FAFSA data, Federal Tax Information (FTI), and student records. It includes a side-by-side comparison of changes from ED’s November 2024 data sharing guidance to the most recent guidance issued in September 2025. Finally, it provides several sample scenarios financial aid administrators may encounter, along with solutions to whether data can be used or disclosed, and alternatives in instances where data sharing is not permitted.
The data sharing decision tree has also been updated to reflect NASFAA’s latest understanding of several topics based on ED’s most recent guidance issued on September 30, 2025. Most of these changes are minor and should not require schools to change how they are currently using and disclosing FAFSA data. Additionally, no changes are made to the FTI section.
One change that could potentially require a change to institutional policies is the removal of a footnote that previously stated that contributors can access their own data on the FAFSA without student consent. While our understanding, prior to the September 2025 guidance, was that this was permitted, the latest guidance does not speak to whether this is permitted. We have removed that footnote while we wait for more information from ED. Institutions should work with their legal counsel if they are unsure how to handle this type of situation.
The decision tree is updated to include the latest definition of application, award, and administration of financial aid from the September 2025 guidance. We also revised a footnote that stated means-test benefits outreach is considered part of the application, award, and administration of financial aid, based on our new understanding. Note that this does not change how institutions can use FAFSA data for means-tested benefits without student consent; the footnote only included an inaccurate classification for how that outreach is permitted.
Finally, we added new text to Box 10 to clarify that written student consent is required under the Higher Education Act (HEA), not the Family Educational Rights and Privacy Act (FERPA), in cases where a school wishes to share FAFSA data with an external entity that is not a third-party servicer to perform that research. Again, this does not change the fact that institutions can use and share student FAFSA data for research to promote college attendance, persistence, and completion. It only clarifies that, for such purposes, consent is required under the HEA and not FERPA.
NASFAA will continue to update our data sharing web center, white paper, and decision tree as we get new answers to outstanding questions. Read Today’s News for updates.
Publication Date: 12/19/2025
Tony L | 1/16/2026 2:57:44 PM
Could you please add an "updated" date at the bottom of the tree please? With all of the updates, it's hard to know what is the most recent one.
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