The New FAFSA Will Be Released In 2 Weeks. Here’s What’s Changing

Changes are coming to the new Free Application for Federal Student Aid.

This FAFSA, which opens on Oct. 1, will determine the amount of federal grants and loans students will receive for the 2026-27 academic year. The Department of Education has updated the way some federal aid is calculated and has added features to make the application easier to access.

The “One Big, Beautiful Bill,” passed by Congress earlier this year, changed Pell Grant eligibility and how a family’s Student Aid Index is calculated. The SAI essentially shows the amount a family is likely to be able to contribute to their student’s education. The index is used to calculate how much students will receive in federal loans and grants, like the Pell Grant. A higher SAI generally translates to lower amounts of federal aid.

Here are the changes you need to know about, and how they will affect you:

• Families with small farms, businesses, or a commercial fishery can exclude these assets when calculating their SAI.

  How this affects you: For the past two FAFSA cycles, families with a farm, business, or fishery had to include these assets when applying for federal aid. On the 2026-27 application, the SAI for many of these families will be lower, and they will likely get more in federal aid.

• Students with full-ride scholarships are no longer eligible for the Pell Grant.

  How this affects you: Students who receive enough non-federal grants or scholarships to cover their full cost of attendance can no longer receive a Pell Grant for the 2026-27 academic year. Previously, some full-ride students would use the grant money for room and board or school supplies.

• Applicants who earn foreign income must report it as part of their adjusted gross income when applying for a Pell Grant.

  How this affects you: Previously, families only had to report income made in the United States. For the 2026-27 academic year, families that have foreign income will likely receive less in federal aid.

• Families with an SAI equal to or greater than twice the maximum Pell Grant amount are not eligible for the federal grant program. Twice the maximum Pell Grant is $14,790 for the 2026-27 academic year.

  How this affects you: This change closes a loophole that some families took advantage of in the past. They transferred their income into assets, which lowered their income and allowed their students to get a higher Pell Grant.