Financial aid applicants who have submitted Fafsa forms in the previous years and qualify to fill again can submit a renewal fafsa. This is because your financial situation is bound to change and the change can be drastic from year to year thus the need to submit a new Fafsa in each academic year.
The renewal fafsa allows you to skip a few questions because it already contains some of the information that was filled the previous years, as this is automatically included in the renewal fafsa. Nevertheless, you still have to provide some financial information such as taxes, savings and any investments made in the current year and any other information that has changed. Information regarding taxes is usually required each year as it provides an accurate prediction of your ability to pay for your college education. In addition, if your financial change is so drastic you can talk to your school to make the necessary adjustments.