Understanding FAFSA for the 2025-2026 school year

If you're in the college planning process, you've likely heard about the Free Application for Federal Student Aid, or FAFSA. Filling it out is essential to receiving financial aid to help pay for college. In past years, the FAFSA has always been available on Oct. 1. However, due to technical problems and delays encountered in 2023 and 2024 because of the FAFSA Simplification Act, the 2025-2026 FAFSA had a phased roll out. This year, the updated form was issued to a select number of students and institutions on Oct. 1, 2024. This approach provided opportunities for the U.S. Department of Education (DE) to work out any system glitches before Nov. 21, when the FAFSA became widely available to everyone. This should ensure a smoother user experience according to the DE.

Below, we've outlined a couple of changes for the upcoming year. In addition, some of last year's adjustments to the 2023-24 FAFSA are worth repeating in this article.

What’s new about FAFSA for 2025-2026

It's even simpler and more accessible. Students will now need to answer up to 46 questions, depending on the applicant. (The old application had 108 questions. Talk about simplified!)

"Contributors" have been introduced.

The ED has designated the term "contributors" for anyone required to provide information on the FAFSA. Contributors could include the student, the student's spouse, a biological or adoptive parent or the parent's spouse. Contributors are invited to complete their portion of the FAFSA by the student or parent filling out the application.

Each contributor needs their own Federal Student Aid (FSA) ID in order to provide personal information on the student's FAFSA. This doesn't mean that contributors are responsible for any education costs. It means they just need to provide their information to complete the form. It can take a couple of days to set up your FSA ID, so the Department of Education recommends requesting one at least three days before starting the FAFSA.

What’s worth repeating

The expected family contribution has been replaced by the SAI

The Student Aid Index (SAI) is still being used to determine how much need-based financial aid a student is eligible for, replacing the Expected Family Contribution (EFC). Here are the major SAI-related changes from 2024-25 that are worth calling out as you prepare the 2025-2026 application:

• Removal of the "sibling discount" — Under the SAI, having more than one student simultaneously enrolled in college within a family is no longer a factor in how much aid one is offered. Previously under the EFC, this "sibling discount" was a factor that the government took into consideration.
• Federal Pell Grant eligibility expands — The Pell Grant is the primary federal grant that aids students who have financial need. Under the new formula, the State Higher Education Executive Officers Association estimates that 42.9% of students previously ineligible for a Pell Grant may be qualified under the new calculation. These grants don't have to be paid back (except under certain circumstances), so they are highly coveted components to a student financial aid package.
• Changes to distinguish aid — In the past, the lowest EFC you could receive was $0. Under the SAI, the lowest amount will be negative $1,500. A negative SAI can help distinguish students who need the most financial assistance and better determine how to best distribute need-based aid.

Other key updates that have been carried over to the 2025-2026 FAFSA

• For divorced parents, financial aid is determined based on the income of the parent who provides the most financial support, even if the student does not live with that parent.
• Child support is still considered an asset instead of income. This can be helpful because it won't make a parent or guardian's income look like it's higher than it really is, which can give a larger number of students the opportunity for more aid.
• Students can list up to 20 schools that can receive their FAFSA data.
• Larger income protection allowances will result in more students qualifying for need-based aid.
• Expanded reporting of farm and business net worth.

Get started now

• Create a StudentAid.gov account now, if you haven't already done so.
• Gather any documents you may need to fill out the FAFSA.
• Figure out your dependency status and if your parent(s) or spouse needs to contribute information on your form. Visit studentaid.gov/apply-for-aid/fafsa/filling-out/dependency for more information.
• Use the Who's my FAFSA parent wizard to determine contributor(s).

And here's another tip: Follow FAFSA on X, Instagram, Facebook, and YouTube for updates. You can also check the DE's website.

The bottom line for the 2025-26 FAFSA

Changes are always under consideration to make the FAFSA clearer, more accessible, and easier to complete. Regardless of modifications to the 2025-2026 FAFSA, it's important to fill it out as soon as it becomes available to you. By doing so, you'll get a jump-start on your plan to pay for college. And regardless of your family's financial situation, it's critical to take this step — even if you don't think you qualify for financial aid.

Just the beginning

Citizens wants to be with you for all of life's biggest moments, and higher education might be the first of many big milestones. From understanding the new FAFSA to student loans and scholarship opportunities, we're ready to help you along your financial journey every step of the way.