Financial Aid
FAFSA: What Parents Actually Need to Know
2026–2027 award year. Updated for FAFSA Simplification Act changes.
This page is informational. We are not financial aid advisors. Confirm all deadlines and figures at studentaid.gov.
Deadlines
Not all states listed. Check your state at studentaid.gov/apply-for-aid/fafsa/fafsa-deadlines
Key Numbers
$7,395
Maximum Pell Grant for 2026–2027
$14,790
SAI at or above this = no Pell eligibility
$0
Cost to file the FAFSA
$740
Minimum Pell Grant (partial eligibility)
What Changed Under FAFSA Simplification
The FAFSA Simplification Act overhauled the federal aid formula starting with the 2024–2025 cycle. These changes are still in effect for 2026–2027.
EFC is gone. SAI replaced it.
The Expected Family Contribution (EFC) was renamed the Student Aid Index (SAI). The SAI can go negative (to −$1,500), which means the highest-need students may receive more aid than under the old formula.
Every contributor must log in and consent individually.
The student, each parent, and any stepparent must each create their own FSA ID, log in separately, and consent to IRS data transfer. One missing contributor = the FAFSA cannot be processed.
Number-in-college reduction eliminated.
Previously, having multiple children in college simultaneously reduced each child's expected contribution. That adjustment is gone. Plan accordingly if you have kids close in age.
Small business and farm asset rules changed.
The old blanket exemption for businesses with fewer than 100 employees was removed, then partially restored for qualifying family-owned small businesses and farms. Check whether your business qualifies — the rules are narrower than before.
Pell Grant formula is now income-based, not EFC-based.
Pell eligibility is now tied directly to family size and federal poverty level, making more lower-income families automatically eligible for maximum Pell.
What to Have Ready Before You Start
Gather these before you sit down. The form takes 30–60 minutes if you have everything; it takes days if you don't.
- •Your 2024 federal tax return (IRS Form 1040)
- •Your student's 2024 tax return, if they filed
- •W-2s and other records of income earned in 2024
- •Bank and brokerage statements (current balances)
- •Records of untaxed income (child support received, tax-exempt interest, etc.)
- •Business or farm records, if applicable
- •Your FSA ID (StudentAid.gov account) — one per person
- •Social Security numbers for student and all contributors
Mistakes That Cost Parents Money
Missing your state's priority deadline
Many states distribute aid first-come, first-served. California's deadline is March 2; Texas is January 15. The federal deadline is June 30, 2027 — but by then, the state money is gone.
Not filing because "we make too much"
A family earning $150,000/year with one student can still qualify for federal loans and, at many private schools, institutional aid. The only way to find out is to file. It costs $0 and takes under an hour.
Forgetting that every contributor must give consent
Under the new rules, each contributor (student, parent, stepparent if applicable) must log in with their own FSA ID and consent to IRS tax data transfer. If anyone skips this step, the FAFSA cannot be processed. Your student gets $0.
Assuming the number-in-college discount still exists
The old formula divided the parent contribution by the number of kids in college simultaneously. That reduction was eliminated under FAFSA Simplification. Two kids in college at the same time now costs almost exactly twice as much as one.
Reporting retirement accounts as assets
Qualified retirement plans (401k, IRA, 403b) are NOT reported on the FAFSA. But the current balance of a brokerage account or savings account IS. Misreporting inflates your SAI and reduces aid.
Leaving fields blank instead of entering zero
A blank field is not the same as zero. Blank fields can cause processing delays, reject flags, or an artificially high SAI. If the answer is nothing, type 0.
Filing after the school's priority deadline
Many colleges have their own financial aid priority dates, separate from state and federal deadlines. Late filers get whatever is left — which is often nothing beyond unsubsidized loans.
Not understanding the CSS Profile requirement
Roughly 200–300 colleges (many private and selective schools) require the CSS Profile in addition to the FAFSA. It collects different information, uses a different formula, and has its own deadlines. Filing only the FAFSA at a CSS Profile school means you are not considered for institutional aid.
The CSS Profile
Roughly 200–300 colleges — mostly private and selective — require the CSS Profile in addition to the FAFSA. It is a separate form run by the College Board.
The CSS Profile asks about home equity, non-custodial parent income, medical expenses, and other data the FAFSA ignores. Schools use it to distribute their own institutional aid.
Cost: $25 for the application and first school, plus $16 for each additional school. Fee waivers are available for eligible students.
If any school on your list requires the CSS Profile and you only file the FAFSA, you will not be considered for institutional aid at that school.
Federal Resources
See how much each school will actually cost your family — after aid.
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