College is a huge investment for many families, and most need some form of financial help to make it happen. If you’re looking for ways to pay for college, one of the first resources you should turn to is the Free Application for Federal Student Aid (FAFSA). Over the past couple of decades, the Department of Education has streamlined the financial aid application process, but questions can still arise. If you or your child are applying to college, here are five essential things you need to know about the FAFSA.
1. What is the FAFSA?
The FAFSA is a free annual form completed by current and prospective college students in the United States to determine their eligibility for federal student aid. It can be filled out by undergraduate and graduate students.
The FAFSA can determine your eligibility for:
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Federal grants (such as the Pell Grant and Federal Supplemental Educational Opportunity Grant [FSEOG])
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Federal work-study programs
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Federal student loans
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In many cases, state and institutional scholarships
What’s new? Starting with the 2024–25 FAFSA, the form was redesigned to be simpler, shorter, and more automated. Those improvements continue in the 2026–27 FAFSA, along with important updates to what assets count toward aid calculations.
Related: Check out the Best Advice and Resources for Filling Out the FAFSA here
2. What information does the FAFSA provide you?
After you file, the FAFSA provides you with a key index number known as the Student Aid Index (SAI), which colleges use to determine your financial aid eligibility. The SAI replaced the old Expected Family Contribution (EFC) beginning with the 2024–25 academic year. In addition to the SAI, the FAFSA outlines each school’s Cost of Attendance (COA), which represents the estimated total cost of attending that institution. The COA typically includes tuition and fees, room and board, books and supplies, transportation, loan fees, and other personal expenses, and some schools may also factor in disability-related costs or reasonable expenses for study abroad programs.
For the 2026–27 FAFSA, several important updates apply. Family farms, small businesses with 100 or fewer employees, and family-owned fisheries are no longer counted as reportable assets if the family lives on or operates them. Certain foreign earned income exclusions will no longer reduce Pell Grant eligibility, and the Pell Grant cutoff has been set at twice the maximum award, which amounts to about $14,790 for the 2026–27 academic year.
3. Does everyone need to complete the FAFSA?
It’s not a requirement to fill out the FAFSA, but the short answer is, yes, you should. By not filling out the FAFSA, you could miss out on federal, state, and sometimes institutional aid provided by the US Department of Education. Students may be eligible for federal and state grants that do not need to be repaid, low-interest federal student loans, or work-study programs that help fund their education while building their résumés.
Many states and colleges also use FAFSA information to determine eligibility for their own aid programs, so filing is essential even if you think you won’t qualify for federal aid. Every student qualifies for some form of aid, and the form is free to complete, so it’s definitely worth filing.
Related: Don't be fooled by these 5 Simple Mistakes to Avoid on the FAFSA
4. How do I complete the FAFSA?
The FAFSA is available at fafsa.gov. To complete the form, students and families will need:
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Social Security number (or Alien Registration Number for eligible non-U.S. citizens)
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Federal income tax returns, W-2 forms, and other earnings records (from the 2024 tax year for the 2026–27 FAFSA)
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Records of assets such as bank accounts and investments (with new exemptions for family farms, small businesses, and fisheries)
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Untaxed income information
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FSA IDs for both the student and, if dependent, a parent
For the 2026–27 FAFSA, several new features have been introduced to make the process more secure and efficient. All contributors—whether students, parents, or spouses—must now provide consent for their tax information to be securely transferred through the IRS Direct Data Exchange. Without this consent, applicants will not be eligible for federal aid. To simplify the process, families can invite contributors by email to complete their portion of the form, reducing the need for complicated coordination. In addition, real-time identity verification has been built into the FSA ID system, allowing faster and more reliable access.
5. What is the FAFSA deadline?
For the 2026–27 school year, the FAFSA:
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Opens October 1, 2025
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Closes June 30, 2026
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Corrections or updates must be submitted by September 12, 2026
While the federal deadline is June 30, many states and colleges set earlier priority deadlines for maximum aid consideration. Some programs award aid on a first-come, first-served basis, so it’s best to submit the FAFSA as soon as possible after October 1.
Related: Here are the Top 10 Things to Remember Before Filing the FAFSA
Every student qualifies for some form of student aid, so make sure you don’t skip this important step of the college admission process. There’s no harm in filing the FAFSA—“free” is in its name, and you never know what type of financial aid you may qualify for. Be sure to apply early and reapply every year you or your child is in college—good things come to those who don’t wait!
Some of the schools on your student's college list may use another financial aid form. Learn all about it with our article on What You Need to Know About the CSS Profile.
