Key takeaways

• Clearer questions, text invitations for contributors, and easier renewals aim to simplify applications.
• Latest FAFSA comes amid new rules on federal student loans and grants, including borrowing limits.  
• Filing early can help families access financial aid programs with limited funding.

Students and families can now submit the Free Application for Federal Student Aid (FAFSA) for the 2027–28 academic year.¹ The Department of Education released the form ahead of schedule last month, with updates designed to further streamline the application process.² 

The FAFSA is used to determine if students are eligible for federal grants, student loans, and work-study programs. States and colleges also use the application to determine eligibility for their financial aid offers.³ 

For many people, the latest form can be completed in as little as 15 minutes, according to the Department of Education.  Later this fall, students’ data will be pre-populated from previous FAFSA forms, allowing for a faster experience for returning students.⁴ 

The federal deadline for the 2027–28 FAFSA is June 30, 2028, but many states and colleges have earlier deadlines.⁵ Some college financial aid is awarded on a first-come, first-served basis, making it important to apply early.⁶

FAFSA updates aim to streamline applications

The form asks for detailed financial information, such as tax returns and assets, which among other things is used to calculate a Student Aid Index (SAI). The index helps determine a student's financial need and eligibility for certain types of aid.⁷

The 2027–28 FAFSA includes several changes designed to simplify the application process and make it easier for students and parents to work together, according to the Department of Education. Key updates include:⁸

• Clearer language: Questions and instructions have been rewritten to eliminate confusing jargon and make the form easier to understand.
• Text invitations: Students can now invite parents and other required contributors to provide financial information by text message, in addition to email.
• Multiple children: Parents with multiple children applying for federal student aid will be able to reuse their information across all applications rather than reentering it each time.
• Instant verification: Improvements introduced in the previous FAFSA cycle allow first-time users to verify their StudentAid.gov accounts more quickly.
• Immediate results: A feature introduced earlier in 2026 allows students to receive FAFSA processing results immediately after submitting their applications; however, these results do not represent final financial aid award determinations.

Applicants should create a StudentAid.gov account and gather relevant financial records before beginning. Students and parents who must contribute information generally need to have separate accounts.⁹

Changes to federal student borrowing and grants

Getting an early picture of financial aid eligibility can be important as the landscape shifts for federal student loan borrowing and grants. 

The One Big Beautiful Bill Act of 2025 introduced changes to Pell Grant eligibility, federal student loan borrowing limits, and repayment options, with new rules taking effect July 1, 2026. Key changes include:

• Family assets: The value of qualifying family-owned farms and small businesses is excluded from FAFSA asset calculations, potentially increasing financial aid eligibility for some families.
• Pell Grants: Students with a SAI at least twice the maximum Pell Grant award are no longer eligible for the grant. Students whose nonfederal grants and scholarships cover their full cost of attendance also face new restrictions.
• Workforce programs: Pell Grants have expanded to cover eligible short-term workforce training programs lasting at least eight weeks but less than 15 weeks.
• Parent PLUS loans: New borrowing limits generally cap Parent PLUS loans at $20,000 annually and $65,000 per student, with exceptions for certain existing borrowers.
• Graduate loans: Grad PLUS loans are no longer available to most new borrowers. Graduate students generally face annual borrowing limits of $20,500, while professional students may borrow up to $50,000 annually, subject to additional limits.

The changes do not affect all borrowers equally. Eligibility for certain borrowing limits and repayment options depends on when loans were first disbursed and whether borrowers qualify for transitional provisions.

Read more: Student loan overhaul: What borrowers need to know

FAFSA: Gateway for students and families

With about 18 million applications filed each academic year, completing the FAFSA remains a critical step in accessing financial aid for college or career training.¹⁰

Families should pay attention to three types of deadlines: federal, state, and college deadlines. While the federal deadline for the 2027–28 FAFSA is June 30, 2028, state and college deadlines may fall much earlier.¹¹

Applying early is particularly important for students seeking grants and scholarships with limited funding. Many states and colleges also have priority deadlines for financial aid consideration.¹²

Filing a FAFSA early gives families more time to compare financial aid offers from different colleges and assess potential funding needs from other sources.¹³  

Families spent an average of $34,019 on college in the 2025–26 academic year, according to a new report from Sallie Mae. Parents and students used income and savings to cover 49% of costs, while scholarships and grants accounted for 27%, parent and student borrowing was 22%, and gifts from family and friends made up 2%.¹⁴

Completing the FAFSA remains an important first step toward understanding the financial resources available to help pay for higher education.

Read more: How much to save for college: A realistic guide for parents