FAFSA Changes

The updates listed on this page relate specifically to changes made to the Free Application for Federal Student Aid (FAFSA) for 2026 – 2027.

FAFSA Update:

• What it is: Updates to the Free Application for Federal Student Aid (FAFSA) for the 2026 to 2027 award year. The 2026 - 2027 FAFSA became available on September 24, 2025.
• What it does: Affects the information students and their contributors must report on the financial aid application.

One Big Beautiful Bill (OB3):

• What it is: A federal law passed on July 4, 2025, that made changes to several federal student aid programs.
• What it does: Changes certain federal financial aid program rules that schools must follow when awarding aid after the FAFSA is submitted and processed.

For more information about changes created by the One Big Beautiful Bill, please visit our One Big Beautiful Bill FAQ page.

Here is a link to Federal Student Aid to access the form and additional information: https://studentaid.gov/announcements-events/fafsa-support

• Students can now invite required contributors, such as parents or spouses, using only an email address. The contributor receives a link and code to access the FAFSA and complete their section. 

• Some users creating a StudentAid.gov account may now have their identity verified immediately if their information matches Social Security Administration records. This allows students and contributors to access and complete the FAFSA more quickly. 

Beginning with the 2026–27 FAFSA, certain assets are excluded when calculating financial aid eligibility. Families may no longer need to report the value of:

• Small family-owned businesses with 100 or fewer employees
• Family farms where the family lives
• Family-owned commercial fishing operations 

Some updates affect how Pell Grant eligibility is calculated:

• Students with a Student Aid Index (SAI) significantly higher than the maximum Pell Grant amount may not qualify for a Pell Grant.
• Foreign income must now be reported when determining eligibility for certain federal grants. 

Beginning with the 2026–27 FAFSA, some questions on the application have been updated.

• These changes include updated race and ethnicity questions that allow students to select more detailed categories when reporting their identity. The updates are intended to align FAFSA demographic questions with federal data reporting standards.
• Answering these questions is optional and does not affect financial aid eligibility. The information is collected only for federal reporting and research purposes.

These federal aid requirements, rights, and responsibilities have not changed or have had only minor updates:

• The FAFSA remains required annually for federal aid consideration and is available to U.S. Citizens or Eligible Non-Citizens.
• Questions about the applicant's gender, race, and ethnicity have no effect on federal student aid eligibility and remain only for statistical purposes.
• Dependency status questions to determine if your parents must provide their information remain the same.
• FAFSA will still request tax information from two years ago. Families that had significant reduction in income due to extenuating circumstances can still request special circumstances review.
• Federal Aid Rights & Responsibilities also didn't change.
• Satisfactory Academic Progress Requirements for Federal Aid are still required to maintain eligibility.