For the first time since 2022, the Free Application for Federal Student Aid will open on its regularly scheduled Oct. 1 date, the Department of Education announced on Aug. 27.
Students looking to receive financial aid, including federal student loans and grants, for the 2026-27 school year need to fill out the FAFSA to be considered. The federal deadline isn’t until June 30, 2026, but your school likely has an earlier deadline — which could be as soon as January — to receive institutional aid.
After a successful first round of beta testing in August, the department began a second phase, allowing any student to request access to the beta version of the 2026-27 form. Students who submit their FAFSA during beta testing will not need to resubmit when the form officially opens on Oct. 1.
Over 3,100 students have submitted a FAFSA as of Sept. 3, according to Federal Student Aid.
Students expecting to qualify for a Pell Grant may want to wait for the full launch on Oct. 1 to submit their FAFSA, says Megan Walter, senior policy analyst at the National Association of Student Aid Administrators. That’s because the grant has new eligibility criteria as a result of the so-called “big beautiful bill” legislation that isn’t built into the beta version of the application.
“If a student files a beta FAFSA and is impacted by these changes, they may be subject to having their FAFSA reprocessed, potentially changing their [Student Aid Index] and expected Pell eligibility,” Walter says.
Since the Department of Education made Congressionally mandated improvements to the form ahead of the 2024-25 school year, students and their families have faced delays preventing them from submitting the form on its usual schedule for the last two aid cycles.
While the launch date may signal a return to normalcy, there are some changes to federal aid students and families should be aware of.
What you need to know for the 2026-27 aid year
To fill out the FAFSA, you and any other contributors, like your parents, need to create an account on StudentAid.gov. From there, you’ll want to gather your family’s financial information, including:
2024 tax returnsChild support recordsBalances for checking, savings and other cash accountsSocial Security numbers
Families no longer need to report the value of small, family-owned businesses, farms where the family lives or family-owned commercial fishing businesses on the FAFSA.
If you’re applying to college or graduate programs for the first time, there are a few upcoming changes to federal student aid to know. For undergrad applicants, parents will no longer be able to borrow up to the cost of attendance with parent PLUS loans, as the federal spending policy President Donald Trump signed into law on July 4 places new limits on those loans.
If your 2026-27 FAFSA determines you qualify for federal student loans, those loans will be disbursed on or after July 1, 2026, which means they will be subject to the new borrowing policies, unless you’re already enrolled in school and have loans that were disbursed prior to that date. There’s a chance some new borrowers could see their loans disbursed earlier, but it’s unlikely, Walter says.
New borrowers will be subject to a lifetime borrowing limit of $257,500 for all federal loans except parent PLUS loans. That amount is equal to the aggregate limit for independent students — those who are over age 24, married, in the military or other circumstances — plus the maximum amount you can borrow for professional school.
Parents of undergraduate students can borrow up to $20,000 per student per year, up to a total of $65,000 per student over the course of their studies. Parents of current students who received loans prior to July 1, 2026 will be able to continue using parent PLUS loans without the new caps for three academic years or through the end of the student’s program, whichever period is shorter.
Additionally, under the new policy schools can enforce lower loan limits for certain programs. If a school determines graduates of a certain program are likely to struggle to repay their loans, it may set a borrowing limit lower than federal levels, for example.
Loan limits will also be prorated based on the student’s enrollment status. Part-time students may only borrow up to half of the applicable annual limit, for example.
FAFSA is for grad students too
Students pursuing graduate and professional degrees should also submit a FAFSA to see if they qualify for aid and be aware of upcoming changes. New grad students will see new aggregate limits on federal loans and the elimination of grad PLUS loans as of July 1, 2026.
If you are currently enrolled in a credentialing program and took out federal loans prior to July 1, 2026, you will retain access to PLUS loans and the previous loan limits for three academic years or the remainder of your program, whichever is shorter.
Grad PLUS loans allow students to borrow up to the cost of attendance after aid. Under the new policy, graduate students can borrow up to $100,000 over the course of their studies and professional students — like those in law or medical school — can borrow up to $200,000.
Who should submit a FAFSA
Despite the confusion and upheaval in the federal student loan space, financial experts still encourage every student and their family to submit a FAFSA if they’re pursuing higher education since there’s no income limit to qualify for aid.
“Everybody should still be submitting your FAFSA,” Kate Wood, a lending expert at NerdWallet, told CNBC Make It in July. “You’re not committing to anything. You’re just finding out what you could get.”
Some students may qualify for a federal grant, like a Pell Grant, which you don’t have to pay back. Others may just qualify to take out student loans, which are generally a better option than private loans if you need to borrow for school, Wood and other experts say.
Want to stand out, grow your network, and get more job opportunities? Sign up for Smarter by CNBC Make It’s new online course, How to Build a Standout Personal Brand: Online, In Person, and At Work. Learn how to showcase your skills, build a stellar reputation, and create a digital presence that AI can’t replicate.
Plus, sign up for CNBC Make It’s newsletter to get tips and tricks for success at work, with money and in life, and request to join our exclusive community on LinkedIn to connect with experts and peers.
