Introduction to FAFSA Changes
It’s that time of year to start applying for federal financial aid for next year – and there are some big changes that students and parents need to know about.
An update meant to simplify and streamline the free application for federal student aid, or FAFSA, instead led to numerous delays due to tech issues over the last couple of years.
Key Changes to the FAFSA
The form has been shortened from 108 to fewer than 40 questions, and there are other significant changes.
President Donald Trump’s domestic spending and policy bill brings new borrowing limits and reduces the number of repayment plan options. It also eliminates Grad PLUS loans and caps graduate student borrowing at $20,500 a year, with a lifetime loan limit of $100,000, down from $138,500.
Loans for professional graduate degrees will also be capped, and so will Parent PLUS loans.
The bill expands Pell Grants for low-income students. Families no longer need to report the value of small, family-owned businesses or farms where they live.
Application Deadline and Process
And for the first time in two years, FAFSA is set to open on time
The federal deadline to apply is June 30, 2026, for next year’s aid. But some schools do have earlier deadlines, so be sure to check and get your important documents and information ready as soon as possible, since aid is on a first-come, first-served basis.
Conclusion
In conclusion, the changes to the FAFSA are significant and can impact the amount of financial aid students receive. It is essential for students and parents to understand these changes and plan accordingly. By being aware of the new borrowing limits, repayment plan options, and deadline, students can make informed decisions about their financial aid.
FAQs
Q: What is the new deadline for FAFSA applications?
A: The federal deadline to apply is June 30, 2026, for next year’s aid.
Q: Have the borrowing limits changed?
A: Yes, graduate student borrowing is capped at $20,500 a year, with a lifetime loan limit of $100,000.
Q: Are there any changes to Pell Grants?
A: Yes, the bill expands Pell Grants for low-income students.
Q: Do families still need to report the value of small, family-owned businesses or farms?
A: No, families no longer need to report this information.
