What You Need to Know About the FAFSA

The Free Application for Federal Student Aid (FAFSA), managed by the Department of Education, is the gateway to federal and state financial aid for millions of college students in America.

In this article, we outline what you need to know about the FAFSA for the 2026-2027 academic year.

Counselors and college admissions folks—keep reading for more info on how to navigate the FAFSA and support students through the process.

Or, jump right to the section that is most relevant to you.

• FAFSA Changes for the 2026-2027 Academic Year
• Big FAFSA Changes from the 2024-2025 Academic Year
• What Students and Families Need to Know About Recent FAFSA Changes
• How High School Counselors Can Support Families
• FAFSA FAQs

FAFSA Changes for the 2026-2027 Academic Year

The FAFSA has a handful of changes for the 2026-2027 academic year.

1. Beta Testing Program

This year, students and families have an opportunity to join a FAFSA beta testing program. Currently, the beta is in phase two, meaning anyone can participate in the beta now and up until October 1, 2025. If you'd like to get a head start on the FAFSA this year, this could be a good option for you.

2. Easier Verification and Guardian Invite Process

The process of inviting a contributor to help students fill out the FAFSA is now simpler. Students do not need to provide their parent or guardian's Social Security number; they will just need to invite them via their email address.

Also, students who provide their Social Security number when creating their account will automatically be verified instead of having to wait days for their identity to be verified. This was released earlier in 2025.

3. Changes to Pell Grant Eligibility

Please see below for information from the Federal Student Aid website on Pell Grant Eligibility (as of September 22, 2025):

• "The foreign earned income exclusion amount reported on the FAFSA form will be added to the adjusted gross income (AGI) when determining Pell Grant eligibility.
• An applicant with an SAI equal to or greater than twice the maximum Pell Grant award amount for the award year are ineligible for a Pell Grant.
  
  • For the 2026–27 award year, this threshold is $14,790.
  • Note, this limit does not apply to students who qualify for a Pell Grant under the Special Rule (dependents of certain deceased service members and Public Safety Officers)."

4. New SAI Exclusions

The net worth of family-owned businesses with 100 or fewer full time employees, family commercial fishing businesses, and farms that a family lives on will be excluded from the SAI calculation for the 2026-2027 academic year.

Big FAFSA Changes from the 2024-2025 Academic Year

The FAFSA had some major changes for the 2024-2025 academic year, due to the passing of the FAFSA Simplification Act in 2020. That's why we have a whole section of this article dedicated to those changes!

Below, we've outlined the 2024-2025 FAFSA changes if you're curious to learn more about them.

1. Fewer questions for students and families to answer

Starting with the 2024-2025 school year, the FAFSA now has a lot less questions for many families, due to a more streamlined data-sharing process between the IRS and the FAFSA.

The simpler FAFSA application allows more students and families to complete the form independently, without the help of a financial aid office or high school counselor.

2. The switch from Expected Family Contribution (EFC) to the Student Aid Index (SAI)

Previously the EFC, the SAI is the new FAFSA’s way of calculating the amount of aid for which a student or family qualifies.

The main changes to the calculation are:

• A new minimum calculation (-1,500 instead of 0)
• Elimination of data points, like the number of family members in college, from the calculation
• Different eligibility criteria for Federal Pell Grants (including an increase in eligibility for lower-income households, and fewer questions for low-income households to answer)
• A negative change in award opportunities is expected for students with siblings who are in college
• Small businesses and farms with under 100 employees are now considered financial assets that could be used to pay for college, likely reducing the amount of aid these families will receive under the new FAFSA

The bottom line: middle and upper-income families will likely receive less aid under the new FAFSA, and lower-income families will earn more.

If you're curious about what support you may receive through the FAFSA, check out the aid calculator from Federal Student Aid.

3. Availability in December instead of October 1

The 2024-2025 FAFSA had a release delay (and some initial bugs). To roll all these changes out, the FAFSA release date was pushed back 3 months to December 30, 2023, reducing the time students and families had to complete the FAFSA for the 2024-2025 academic year.

For the 2026-2027 academic year, the FAFSA is not expected to have delays. It will be released by October 1, 2025 according to the Federal Student Aid website.

Families will have until June 30, 2026 to submit the FAFSA for the 2026–27 academic year.

4. The introduction of "contributors"

Starting with the 2024-2025 FAFSA, the concept of contributors was introduced. Contributors are those who submit information on the form. Here are the details on the contributors concept from Federal Student Aid website:

"'Contributor' is a new term on the 2024–25 FAFSA form. It refers to anyone (you, your spouse, your biological or adoptive parent, or your parent’s spouse) who’s asked to provide their information, consent and approval to have their federal tax information transferred automatically from the IRS into the FAFSA form (more on that later), and signature on your FAFSA form."

Every FAFSA contributor needs an FSA ID, AKA your username and password to log into the Federal Student Aid website. Students and parents/guardians must fill out the new FAFSA separately in their separate log-ins.

Plus, divorced parents must follow a new rule. The parent who financially supported the student the most in the past 12 months is considered the contributor. 

Also, the FAFSA is now available in 11 languages!

What Students and Families Need to Know About Recent FAFSA Changes

The main recent FAFSA update to keep in mind is the introduction of the Student Aid Index (SAI), and the projected aid changes for certain groups. 

You can expect to receive less aid under the new FAFSA if you:

• Have a sibling in college
• Own a family farm or small business with fewer than 100 employees

While the exact impact on aid is unknown, low-income families can expect to receive more aid.

Also, keep in mind the new contributors concept that we mention earlier in the article.

If you’re looking to learn more about your financial aid options, these articles can help.

• Inside the Financial Aid Process: A Guide for Students and Parents   
• FAFSA & CSS Profile - A Straightforward Guide to Understanding Financial Aid 

You may need to fill out the CSS Profile or another financial aid form. 

How High School Counselors Can Support Families

Here is an email template counselors can use to announce the FAFSA to parents/guardians and students:

Hi there,

This is an exciting time for our seniors and juniors. For those who are looking to attend college, the college prep process has already begun.

One key college prep to-do to keep in mind is filling out the FAFSA.

You can learn more about the FAFSA updates and what they may mean for you and your family in this article by Scoir about the FAFSA. The Federal Student Aid website is another great resource to explore.

Please let me know if you have any questions or if I can assist you and your family in any way through the FAFSA application process.

If it makes sense for you, try blocking your calendar now to set aside time to support students and families with the new FAFSA.

You can also plan a meeting or record a virtual presentation explaining the FAFSA updates to students and families in the fall.

FAFSA FAQs

Low on time? Read answers to these commonly asked FAFSA questions so you can quickly take the required next steps.

When will the 2026-2027 FAFSA be available?

The 2026-2027 FAFSA was released on October 1, 2025.

What is the FAFSA application deadline?

Students and families will have until June 30, 2026 to complete the FAFSA application. However, each state and school has different deadline requirements, so you will want to double-check deadline requirements with those parties.

It is a good best practice to complete the FAFSA as soon as possible to increase your chances of receiving aid.

Typically, the deadline for schools is in the spring, prior to the June 30 deadline FAFSA requires.

What is the SAI?

SAI stands for “Student Aid Index.” The SAI has replaced the EFC, or “Expected Family Contribution” calculation. The SAI determines how much aid a student or family needs. 

Unlike the EFC, the SAI can be a negative number (as low as -1,500), signifying that a student is eligible for more aid.

This is good news for many lower-income students and families; the SAI will help those in need qualify for more aid.

To learn more about your other financial aid options, our blog post on the college financial aid process can help.

How does the switch from EFC to SAI impact students and families?

The SAI calculation differs from EFC by introducing a minimum calculation, eliminating certain data points, and altering eligibility criteria for Federal Pell Grants, potentially resulting in reduced aid for middle and upper-income families and increased aid for lower-income families.

Who are considered "contributors" on the new FAFSA, and what are their responsibilities?

Contributors are individuals (such as students, parents, or guardians) who provide their information, consent, and approval for the transfer of federal tax information from the IRS into the FAFSA form. Each contributor must have an FSA ID and fill out the FAFSA separately.

How will the new FAFSA impact aid for students with siblings in college or families owning small businesses or farms?

Students with siblings in college and families owning small businesses or farms with less than 100 employees may receive less aid under the new FAFSA.