For many students and families, the Free Application for Federal Student Aid (FAFSA) is one of the most important steps in the college planning process. FAFSA determines eligibility for federal, state, and institutional financial aid, including grants, work-study programs, and federal student loans.
Each year, updates to FAFSA influence how families prepare, what information is required to apply, and how financial aid decisions are made. Understanding what’s changing for the 2026–2027 school year can help students and parents approach the process with more clarity and fewer last-minute questions.
Why FAFSA matters in college planning
FAFSA remains a primary gateway to most forms of financial aid. Even families who don’t expect to qualify for need-based assistance are often encouraged to complete it, as many colleges, states, and scholarship programs use FAFSA data to make funding decisions.
According to the U.S. Department of Education, students who don’t complete the FAFSA may miss out on federal, state, and institutional financial aid they could be eligible to receive. Completing the form keeps more options available and provides a clearer picture of how to cover college costs.
Rather than viewing FAFSA as a one-time task, it’s helpful to approach it as part of an ongoing financial planning conversation that informs affordability, school selection, and long-term education decisions.
What’s new with the 2026–2027 FAFSA Application
Recent FAFSA cycles introduced significant changes designed to simplify the application and improve accessibility. The 2026–2027 FAFSA guidelines continue to build on those updates, including:
- A streamlined application format with fewer questions compared to older FAFSA versions.
- Expanded use of direct data sharing with the IRS, allowing eligible applicants to transfer tax information automatically, which can reduce errors and processing delays.
- Updated contributor definitions, clarifying when parents, spouses, or others are required to provide financial information.
- Revised Pell Grant eligibility calculations, expanding access for some lower and middle income students.
The Department of Education recommends that students and parents rely on official guidance from StudentAid.gov and Federal Student Aid announcements to stay current as details and instructions get updated.
What students should know before applying
For students, FAFSA directly affects what types of financial aid may be available and how aid packages are structured. A few foundational points can make the process easier to navigate.
- Completing the FAFSA as early as possible can help reduce delays and allow more time to review financial aid offers.
- FAFSA information is used to determine eligibility for grants, work-study programs, and federal student loans.
- Financial aid packages often include a mix of aid types, not just grants, making it important to understand how each option works.
- Accurate personal details and school selections help avoid corrections that can slow processing.
Taking time to review financial aid offers carefully helps students compare options and make informed decisions about where and how to attend college.
What parents should know before applying
Parents can play an important role in the FAFSA process, especially when their financial information is required. Understanding how FAFSA evaluates household information sets realistic expectations.
- FAFSA uses a snapshot of household financial data, not a full picture of a family’s financial situation.
- Parental income and household details may be required based on the student’s dependency status.
- Completing the FAFSA does not require families to borrow, but it keeps more aid options open.
- FAFSA results can serve as a starting point for broader conversations about affordability, timelines, and funding gaps.
Additional scholarship and funding resources
In addition to FAFSA-based aid, many students explore external scholarships and education resources that offer additional opportunities for assistance.
Financial tools that support students and families
As students begin managing education expenses and building financial independence, having the right financial tools in place matters. Some families explore student loan options as part of a broader funding strategy, while others focus on helping students build responsible money habits early.
Student-focused accounts and financial resources can support education planning when used thoughtfully. Our student resources are designed to support learning, planning, and long-term financial well-being alongside guidance that helps families make informed decisions throughout the college journey.
Make FAFSA part of your bigger picture
FAFSA can feel complex, especially when updates or changes are introduced. Taking time to understand what’s new for the 2026–2027 school year helps students and parents approach the process with more confidence and fewer last-minute questions.
How SECU can support college planning
As part of the planning process, some families explore additional resources to better understand costs, timelines, and available options.
- SECU MD Foundation scholarships are available each year to help Maryland students continue their education and support long-term financial well-being. Applications will open February 17, 2026.
- SECU student loan options are designed to provide flexibility and clarity as families evaluate how to cover remaining college expenses.
If you have other questions about how FAFSA fits into your broader college planning strategy, our team can help you think through the options and plan ahead with confidence.
