New FAFSA Rules in 2026–27 Will Shock You—Get Ahead Before It’s Too Late

Every year, millions of students and families rely on the FAFSA (Free Application for Federal Student Aid) to access grants, scholarships, work-study programs, and federal loans. For the 2026–27 school year, FAFSA is undergoing several key changes, some positive, some negative, that could impact how much aid families receive and how smoothly the process works.

As someone who has spent years guiding students through admissions and financial aid, I want to break down what’s changing, what it means for your family, and how you can best position yourself for success.

The Good News: FAFSA Is Back on Schedule

After years of delays and frustrating rollouts, the FAFSA is set to open on October 1, 2025, for the 2026–27 school year. This marks the first time in three years that families can file on time, giving them a clearer financial picture earlier in the admissions cycle.

For families, this is a welcome return to normalcy. An earlier launch means:

• More time to meet state and institutional aid deadlines.
• Faster financial aid award letters from colleges.
• Less stress in juggling admissions decisions and cost planning.

FAFSA Simplification: A Shorter, Streamlined Form

The redesigned FAFSA will be shorter and easier to complete. Key improvements include:

• Fewer questions overall, cutting down on the time and stress it takes to finish the application.
• Direct IRS connection, allowing families to import tax information automatically rather than manually entering W-2s, 1099s, and other financial documents.
• A more user-friendly online portal, which should reduce technical issues and confusion.

For many parents who have found FAFSA intimidating in the past, this is a major step forward.

The Big Shift: EFC to SAI

One of the most significant changes is the replacement of the Expected Family Contribution (EFC) with the Student Aid Index (SAI). While this is largely a change in terminology, it comes with a goal of making aid eligibility calculations clearer.

The SAI is designed to simplify how families understand what colleges expect them to contribute. However, it won’t always feel like a big difference in practice especially when it comes to who qualifies for need-based aid.

The Downside: No More Sibling Discount

For years, families with multiple children in college at the same time received a break: their EFC was divided among the siblings, which often led to more aid for each student.

That’s gone. Under the new FAFSA rules, having two or three kids in college no longer increases your aid eligibility.

This hits middle- and lower-income families hardest, especially those who depend on every dollar of federal loans, Pell Grants, or work-study programs. Families will now need to prepare more carefully to cover simultaneous tuition bills.

The DOE Shutdown Factor

Another wrinkle in the FAFSA process is the broader restructuring of the Department of Education. With fewer staff at the Office of Federal Student Aid, students may experience longer wait times for support and delays in processing applications.

The good news: the aid programs themselves, Pell Grants, Stafford Loans, and federal work-study, are still guaranteed by law. The challenge will be navigating the system smoothly and ensuring your application doesn’t get stuck in the queue.

What Families Should Do Right Now

Given these changes, here’s my advice for students and parents preparing for the 2026–27 FAFSA cycle:

1. File early. The FAFSA opens October 1, 2025. Don’t wait until spring, funding is limited and often distributed on a first-come, first-served basis.
2. Check institutional deadlines. Many colleges set priority FAFSA deadlines much earlier than the federal deadline of June 30, 2026.
3. Keep documentation. Save copies of everything, confirmation emails, submission receipts, and tax records, in case of processing delays.
4. Plan for multiple kids. Without the sibling discount, families should budget more carefully and explore outside scholarships.
5. Supplement with private scholarships. Use platforms like Prep Expert® to strengthen your test scores and essays, which can unlock merit aid and reduce reliance on federal funding.

Final Thoughts

The 2026–27 FAFSA changes are a mixed bag. On the positive side, the form is shorter, easier, and back on schedule. On the negative side, the elimination of the sibling discount and potential DOE staffing delays could complicate things for many families.

The most important thing is this: don’t let the uncertainty keep you from applying. If your family makes under $200,000 annually, it’s a no-brainer, you should file the FAFSA. Grants, loans, and scholarships are still on the table, but only for those who apply.

At Prep Expert®, we believe that every student deserves access to the education they dream of. That’s why we don’t just help students ace their SATs and ACTs, we help them position themselves for maximum financial aid, so they can graduate with opportunity, not debt.

Because while the rules may change, preparation and persistence always win.

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Dr. Shaan Patel is a Shark Tank winner, bestselling author, and founder of Prep Expert®, an education company that has helped over 100,000 students improve test scores, win scholarships, and gain admission to top universities. He scored a perfect SAT and is passionate about expanding access to education worldwide.