Key 2026–2027 FAFSA updates every family should know

If you’re a student preparing for college—or a parent supporting that journey—the FAFSA (Free Application for Federal Student Aid) is a critical step in securing financial support. For the 2026–27 academic year, several updates are being introduced to make the process faster, simpler, and more equitable. Here’s what you need to know.

The FAFSA will open on October 1, 2025, and the final deadline to submit is June 30, 2027. While that may seem far off, it’s important to apply as early as possible. Many states and colleges award aid on a first-come, first-served basis, so early submission can make a big difference.

Faster Identity Verification

One of the most welcome changes is faster identity verification. Students who create a StudentAid.gov account using a valid Social Security number will now be verified instantly. This eliminates the waiting period that previously delayed access and allows families to immediately import IRS tax data into the FAFSA form. The result is a smoother, quicker application experience with fewer chances for errors.

Easier Contributor Invitations

Another improvement is the simplified contributor invitation process. FAFSA forms often require input from parents or spouses. In the past, this meant entering personal identifiers like Social Security numbers or FSA IDs. Now, students can invite contributors via email. Each contributor receives a secure link to complete their section, making the process more user-friendly and reducing the risk of mistakes.

New Asset Exemptions for Families

Families who own small businesses, farms, or fishing operations will benefit from new asset exemptions. The net worth of businesses with 100 or fewer full-time employees, farms where the family lives, and family-run fishing operations will no longer be counted in the Student Aid Index (SAI). This change could increase eligibility for need-based aid, especially for families who were previously penalized for owning these types of assets.

Pell Grant Eligibility Changes

The Pell Grant program, which provides essential support to low- and moderate-income students, is also undergoing changes due to the One Big Beautiful Bill Act (OBBBA). Families with foreign income must now include it in their Adjusted Gross Income (AGI) when applying. Students with an SAI equal to or greater than twice the maximum Pell Grant award will no longer qualify, unless they meet specific exemptions—such as being the child of a fallen service member or public safety officer. Additionally, students receiving full-ride scholarships from non-federal sources will not be eligible for Pell Grants. These updates aim to ensure that federal aid is directed to students with the greatest financial need.

Deadlines Still Matter

Despite these improvements, one rule remains unchanged: the federal deadline. The FAFSA must be submitted by June 30, 2027, to be considered for aid. Applying early is still the best strategy to maximize opportunities.

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).

The Bottom Line for the 2026-2027 FAFSA

In summary, the 2026–27 FAFSA brings meaningful improvements that streamline the process and offer relief for families with small businesses or farms. At the same time, changes to Pell Grant eligibility mean it’s more important than ever to understand how your financial situation affects your aid outlook. Preparing early, gathering the right information, and applying promptly will help families make the most of what’s available. That’s the best way to maximize your financial aid and focus on what really matters—your education.

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.