FAFSA changes: What to know about student aid as fall enrollment opens
FAFSA changes: What to know about student aid as fall enrollment opens
FAFSA’s opening brings faster verification, easier parent access, and new aid eligibility rules
FAFSA changes: What to know about student aid as fall enrollment opens
FAFSA’s opening brings faster verification, easier parent access, and new aid eligibility rules
09.26.2025
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·FAFSA changes: What to know about student aid as fall enrollment opens
Key takeaways
- Nearly 18 million FAFSA applications are processed each year
- Faster verification and secure parent access aim to reduce delays
- New rules reshape grants, loans, and family asset treatment
- FAFSA completion rates were about 54% for high school seniors last year
Students can file the Free Application for Federal Student Aid (FAFSA) for 2026–27. The Department of Education updated the form to speed up verification and make it easier for families to apply. New federal rules also change aid eligibility.
Students applying to college aid will find some changes this autumn. The Free Application for Federal Student Aid (FAFSA) is returning to its earliest fall opening in years, with upgrades that cut wait times and make it easier for parents to join the application.1
The Department of Education (ED) handles nearly 18 million FAFSA applications — both electronic and paper — each year. It distributes approximately $120.8 billion annually in grants and loans to help students and their families cover college or career training costs.2
To qualify for federal loans or grants in 2026–27, students must submit the FAFSA, which opened Sept. 24.3 The federal deadline is June 30, 2026, but many colleges set earlier dates — some as soon as January — to award institutional aid.4
In addition to streamlined application features, there are significant changes to the underlying formula used to award aid, along with other new requirements enacted under the One Big Beautiful Bill Act of 2025.5
Read more: What the big, beautiful bill could mean for wallets nationwide
FAFSA updates aim to streamline applications
The updated FAFSA comes with new features designed to simplify the process. Students with a Social Security number will now have their accounts verified instantly, eliminating previous waits of one to three days.6
The new FAFSA also aims to make parent participation easier. Instead of asking students to collect sensitive personal details, the form lets them invite a parent, guardian, or spouse simply by entering their email. The person will get a code by email and link to the form securely — reducing errors and hassle.7
ED started a round of beta testing in August to catch potential glitches before the full rollout. Students who wanted an early start were able to request access in September.8
More than 12,500 students have submitted a 2026-2027 FAFSA as of September 24, according to the Federal Student Aid website.9
Read more: How to apply for a student loan
Key changes in federal student aid
The One Big Beautiful Bill Act of 2025 overhauls federal student aid by reshaping the Student Aid Index (SAI) — a government formula that measures a family’s ability to pay for college — and by changing eligibility rules for grants and loans.10
Key changes include:
- Family assets: The value of family-owned farms and small businesses will be excluded from FAFSA asset calculations and no longer factored into the SAI.
- Pell grants: Starting in 2026, students must be enrolled at least half-time to qualify. Applicants with an SAI more than double the maximum Pell Grant (currently $7,395 for 2025–26) will not be eligible.
- Workforce programs: Pell Grants will expand to cover short-term vocational and trade programs lasting 8–15 weeks.
- Loans: New student borrowers will face a lifetime cap of $257,500, excluding loans to parents. Those loans, called Parent PLUS, will be limited to $20,000 per year and $65,000 total.
- Graduate changes: Graduate PLUS loans made to directly to students in graduate or professional programs will be closed to new borrowers after July 1, 2026.
FAFSA: Gateway for students and families
High school seniors who submit the FAFSA are much more likely to attend college right after graduation, according to the National College Attainment Network.11 The FAFSA completion rate for the class of 2025 was about 54%.12
In addition to federal funds, many states and private scholarships require the FAFSA for their aid, or base awards on it.13 Washington state recently launched a campaign to boost FAFSA completion, while California has a law requiring school districts to strongly encourage students to apply.14,15
Counselors and advocacy groups say timely completion is critical not just for securing aid, but for helping students make informed decisions about which schools they want to attend and can afford.16
Even as new rules reshape grants and loans, completing the form gives students potentially broad access to aid, from federal programs to state initiatives to private scholarships.
Read more: College enrollment rebounds as students and employers shift priorities
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1 CNBC, “The FAFSA officially opens on Oct. 1—but you can apply for aid now,” September 2025.
2 Government Accountability Office, “Gaps in Federal Student Aid Contract Oversight and System Testing Need Immediate Attention,” September 2025.
3 Department of Education, "U.S. Department of Education Announces Earliest FAFSA Form Launch in Program History," September 2025.
4 CNBC, “The FAFSA officially opens on Oct. 1—but you can apply for aid now,” September 2025.
5 New York Times, “The FAFSA Form Is Coming on Time This Year. For a Change,” September 2025.
6 Department of Education, “2026–27 FAFSA Improvements and Beta Testing Plan,” August 2025.
7 New York Times, “The FAFSA Form Is Coming on Time This Year. For a Change,” September 2025.
8 New York Times, “The FAFSA Form Is Coming on Time This Year. For a Change,” September 2025.
9 Federal Student Aid, “2026–27 FAFSA Submission Stats,” accessed September 2023.
10 NASFAA, “Federal Student Aid Changes from the One Big Beautiful Bill,” July 2025.
11 National College Attainment Network,” FAFSA Completion Resources,” accessed September 2025.
12 National College Attainment Network,” FAFSA Completions Bounce Back with Class of 2025, Return to Pre-Pandemic Rates,” July 2025.
13 AP News, "FAFSA application is open for early testing. Here’s what to know," August 2024.
14 Washington State Standard, “WA governor wants to boost state’s low rate of federal student aid applications,” September 2025.
15 EdSource, “California sees boost in student applications for college financial aid,” March 2023.
16 The Brooking Institution, “School counselors are vital to navigating the FAFSA maze,” February 2024.
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