2027–28 FAFSA Opens October 1, 2026: What Changes

On October 1, 2026, the 2027–28 FAFSA (Free Application for Federal Student Aid) opens to the public. It is the form students must file to receive federal grants, work-study and loans for the 2027–28 academic year — and many states and colleges use it for their own aid as well. This year’s form carries over several important changes from the One Big Beautiful Bill Act (OBBBA) of July 2025, and it arrives soon after major changes to federal student loans took effect on July 1, 2026. Here is what students and families need to know.

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The Basics: Timing and Tax Data

The 2027–28 form uses information from your 2025 federal tax return (“prior-prior year”). Tax data is transferred directly from the IRS through the Direct Data Exchange once every required contributor — the student and, for dependent students, the parents — gives consent; without that consent, no aid can be calculated. The Department of Education ran a beta test from August 5, 2026, before the public launch. Changes reported for the new form include a clearer process for inviting contributors (parents or a spouse), pre-filled renewal data for returning students, the option to reuse parent information for siblings, stronger identity verification for new StudentAid.gov accounts and plainer wording.

What Changes in the Aid Calculation

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The OBBBA changes that started with the 2026–27 FAFSA continue to apply:

Family businesses and farms: family-owned businesses with 100 or fewer employees, family farms the family lives on, and commercial fishing operations are excluded from reportable assets. Their income still counts.
Foreign income and Pell: foreign earned income that used to be excluded is now added back when determining Pell Grant eligibility.
Pell cut-off: students whose Student Aid Index (SAI) is at or above twice the maximum Pell Grant are not eligible for Pell — for 2026–27 that threshold was an SAI of $14,790; the 2027–28 figure is inflation-adjusted.
Retirement accounts such as 401(k)s and IRAs remain non-reportable.

Loan Changes Already in Effect Since July 1, 2026

Students planning their 2027–28 budget should also know the new federal loan rules that took effect on July 1, 2026:

Grad PLUS loans ended for new borrowers (a legacy provision lets students already enrolled in a program continue for up to three years).
New graduate limits: $20,500 a year and $100,000 in total for graduate programs; $50,000 a year and $200,000 in total for professional programs such as law or medicine.
Parent PLUS loans are capped at $20,000 per student per year and $65,000 per student in total.
New borrowers repay under either the new income-based Repayment Assistance Plan (RAP) or a tiered standard plan.

For graduate students in particular, the new caps may leave a gap that has to be covered by savings, institutional aid or private loans. Our student loan guide explains the options.

How to Prepare

A student's desk at night with a glowing laptop displaying a financial aid form, a steaming cup of coffee, and a "To-Do" list in the background under warm lamp lighting.

Create or update your StudentAid.gov account (FSA ID) — and make sure each parent or spouse who must contribute has one too.
Have your 2025 tax information ready, plus records of assets that still count (cash, savings, investments other than retirement accounts).
File early. Some state grants and college aid programs are limited or first-come, first-served, and state and college deadlines are often much earlier than the federal one.
Check every contributor has given consent for the IRS data transfer — a missing consent is one of the most common reasons an application stalls.
Review your FAFSA Submission Summary for errors and watch for requests from your financial aid office.

Common Pitfalls

Mistakes in contributor information, missing signatures or consent, and outdated email addresses can delay processing. If your family’s finances have changed significantly since 2025 — job loss, divorce, medical costs — contact your college’s financial aid office: aid administrators can make “professional judgment” adjustments that the form itself cannot. Keep copies of tax returns, W-2s and award letters.

Beyond Federal Aid

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The FAFSA is the gateway, but rarely the whole answer. Compare net prices, apply for institutional and private scholarships, and borrow carefully — see our tips if there seems to be no money for college.

Conclusion

A close-up of a person's hands typing on a laptop in a modern cafe, with a "Success" folder visible on the screen under soft, natural lighting.

The 2027–28 FAFSA opens on October 1, 2026. The biggest changes affect families with small businesses or farms (excluded from assets), families with foreign income (Pell), higher-income students (the Pell cut-off) and anyone relying on Grad PLUS or Parent PLUS loans. File early, double-check contributor consent, and talk to your financial aid office if your situation is unusual. Always confirm current figures on StudentAid.gov.

Sources: Saving to Invest: The 2027-28 FAFSA opens October 1; The College Investor: FAFSA no longer counts business assets; NASFAA: What graduate students need to know (OBBBA)