For families with a child heading to college, the Free Application for Federal Student Aid (FAFSA®) is an important part of the college planning process. The application determines eligibility for federal financial aid and also helps states and colleges award their own financial assistance.
The 2027–2028 FAFSA became available on October 1, 2026, for students attending college or another eligible postsecondary program during the 2027–2028 academic year. Families can find the latest application information through Federal Student Aid, the U.S. Department of Education’s official resource for federal student aid.¹
Although the FAFSA has become easier to complete in recent years, families should not wait until the last minute. State and college deadlines can come well before the federal deadline, and completing the FAFSA early gives families more time to address potential issues and understand their financial aid options.
When Does the 2027—2028 FAFSA Open?
The Department of Education launched the 2007—2028 FAFSA on October 1, 2026. The Department continued to develop a new form and is making additional changes to simplify the application experience.
The federal FAFSA deadline is much later than the opening date, but families should not use that deadline as their target. Colleges and states establish their own financial aid deadlines, and some aid programs have earlier deadlines or limited funding.
Students should check the financial aid deadlines for every college they are considering as well as the applicable state deadlines. The Federal Student Aid FAFSA deadlines page provides the latest federal and state deadline information.²
What Tax Information Will the FAFSA Use?
For the 2027–2028 FAFSA, families will generally report 2025 income and tax information under the FAFSA’s prior-prior-year methodology.
The IRS transfers much of the required federal tax information directly after the student and required contributors provide consent and approval. That means families generally do not have to manually enter every figure from their tax return.
However, it is still a good idea to have tax records and other financial information available when completing the application. The Federal Student Aid FAFSA checklist recommends that families have access to their federal tax information, records of certain assets, and other documentation before beginning the form.³
Providing consent and approval for federal tax information to be transferred is required even if a student or contributor did not file a federal tax return. Without that consent and approval, the student will not be eligible for federal student aid.
What Is Changing for the 2027—2028 FAFSA?
Families who have completed the FAFSA in previous years should find the 2027–2028 application easier in several ways.
The Department of Education plans to pre-populate students’ information from previous FAFSA applications, reducing the amount of information returning students have to enter each year. Parents who have multiple children applying for federal student aid will also be able to reuse their information across applications rather than entering the same information repeatedly.
The Department is also revising questions, instructions, and response options to make the form easier to understand. These changes are intended to reduce confusion and errors that can delay FAFSA processing.
These improvements should make the annual FAFSA process less time-consuming, but families should still carefully review the information before submitting the application.
Who Needs to Complete the FAFSA?
Students generally need to complete a new FAFSA every year they want to be considered for federal student aid.
For a dependent undergraduate student, a parent or other required contributor may need to provide information on the FAFSA. Each contributor must have their own StudentAid.gov account. Parents and students should not share an account. The Federal Student Aid guidance on StudentAid.gov accounts explains who may be considered a contributor and how contributors participate in the FAFSA process.
Families with divorced or separated parents should pay particular attention to the FAFSA’s contributor rules. The parent who should provide information is not necessarily determined simply by which parent claims the student as a dependent for tax purposes.
What Should You Have Ready?
Preparing before the FAFSA opens can make the application considerably easier.
Students and required contributors should have their StudentAid.gov accounts established. Families should also gather their tax information, records of applicable assets, and other financial information. Having a list of the schools the student is considering is also helpful.
The FAFSA itself is free to complete. Families should use the official Federal Student Aid website and avoid websites that charge a fee to submit the application.
Considerations To Potentially Improve Your FAFSA
The timing of the FAFSA can matter because the application asks for the current value of certain assets on the day you sign it. Cash in checking and savings accounts, taxable investments, rental real estate, and certain education savings accounts are reported, while your primary residence and retirement accounts such as 401(k)s and IRAs are generally excluded from the asset calculation.
That does not mean families should move money around simply to make their FAFSA look better. But it can be worthwhile to review your family’s finances before completing the application. Because certain assets are considered in the financial aid formula, families may benefit from understanding how their financial resources are treated under FAFSA rules. Financial decisions should be based on a family’s overall financial objectives, liquidity needs, and long-term goals rather than solely on potential financial aid outcomes. Similarly, families should understand that parent-owned 529 assets are treated differently from student-owned assets, and student assets generally receive more weight in the formula. Savingforcollege.com notes that student assets are assessed at up to 20%, compared with a maximum assessment of 5.64% for parent assets.⁴
There are also important reasons you may not make certain moves solely for FAFSA purposes. Moving money into a retirement account, for example, may change the asset reported on the FAFSA because retirement accounts are excluded, but contributing large amounts to retirement simply to reduce reportable assets may not make sense if it compromises other financial priorities. Likewise, taking money out of an IRA or Roth IRA can create income that affects financial aid calculations even though the account itself is not reported as an asset.
The better approach is to look at the FAFSA as one part of a larger college funding strategy. Before submitting the application, families with significant savings, investments, or multiple 529 accounts may benefit from reviewing which assets are counted, whose name they are held in, and whether there are legitimate financial decisions that should be made regardless of FAFSA considerations. A financial professional can help weigh potential financial-aid benefits against taxes, investment considerations, college costs, and the family’s broader retirement plan.
Don't Assume Your Family Earns Too Much
Some families assume they will not qualify for financial aid because their income or assets are too high. But completing the FAFSA can still be worthwhile. The application is used to determine eligibility for federal grants, work-study, and federal student loans, and colleges use FAFSA information when awarding their own financial aid. In Pennsylvania, FAFSA information is also used to determine eligibility for the Pennsylvania State Grant, the state’s primary need-based grant program, along with other state financial aid programs.
The Pennsylvania State Grant can help eligible students pay education costs at approved colleges, universities, and career schools. Pennsylvania also has its own FAFSA deadlines for state aid that can be earlier than the federal deadline, so waiting to see whether your family qualifies could mean missing out on assistance. Even if you ultimately do not qualify for need-based aid, completing the FAFSA keeps your student eligible for programs that require the application and gives you a clearer picture of the financial aid available before making college decisions.
Pennsylvania Families Have an Additional FAFSA Requirement
Pennsylvania families should pay particular attention to the FAFSA for another reason.
Beginning with the 2026–2027 school year, Pennsylvania law requires high school students enrolled in Pennsylvania public and nonpublic schools to either file the FAFSA or submit the Pennsylvania FAFSA Completion Opt-Out Form before completing high school. The requirement therefore applies to students who will be graduating during the 2027–2028 FAFSA cycle as well.
The requirement does not mean a student must accept financial aid or attend college. Pennsylvania law also states that a student cannot be prevented from graduating or penalized for failing to complete the FAFSA. Families who choose not to file can submit the appropriate opt-out form.
Pennsylvania families should also be aware of the state’s FAFSA deadlines for the Pennsylvania State Grant. The FAFSA completion deadline is May 1 for first-time college students attending four-year Pennsylvania schools and August 1 for students attending eligible two-year, business, trade, or technical schools.
These deadlines are separate from the federal FAFSA deadline, which is another reason not to wait until the last possible date.
What Is the Student Aid Index?
One of the biggest changes to the FAFSA in recent years was replacing the Expected Family Contribution with the Student Aid Index (SAI). The SAI is a formula-based number used by colleges to estimate a student’s financial need. It can range from -1,500 to 999,999. A lower SAI generally indicates greater financial need, while a negative SAI indicates a particularly high level of financial need.
The important thing to remember is that the SAI is not a dollar amount and it is not what your family is expected to pay for college. For example, an SAI of $20,000 does not mean your family will receive a $20,000 college bill. Schools use the SAI along with their cost of attendance and other factors to determine a student’s eligibility for need-based financial aid. Your FAFSA Submission Summary will show your official SAI after the FAFSA is processed.
FAFSA Is Only One Part of College Investment Planning
Completing the FAFSA is important, but it should not be viewed as a complete strategy for paying for college.
For families who are planning several years out, college savings, investments, cash flow, and other financial resources may all play a role in funding education. At the same time, parents need to consider how college expenses fit alongside retirement planning and their other long-term financial goals.
This is where college planning becomes part of a broader financial plan. A strategy that helps pay for a child’s education but leaves a family unprepared for retirement may not be the right solution.
Families can explore Magellan Financial’s college savings planning resources to learn more about strategies for preparing for future education expenses.
Start Preparing Now
Even if you won’t file in October, Families can take steps now to make the process easier.
Create or confirm StudentAid.gov accounts, gather tax and financial records, identify the schools the student may attend, and review both federal and state deadlines. Pennsylvania families should also understand the state’s FAFSA completion requirement and the deadlines for Pennsylvania State Grant eligibility.
Most importantly, view the FAFSA as one piece of a larger college funding strategy. College expenses can have a significant effect on a family’s finances, and decisions about education funding should be considered alongside retirement, investments, and other long-term goals.
For more information about the 2027–2028 FAFSA, visit Federal Student Aid. For questions about incorporating college funding into your broader financial plan, contact Magellan Financial to discuss your family’s goals and planning options.
Please consider the investment objectives, risks, charges, and expenses carefully before investing in a 529 savings plan. The official statement, which contains this and other information, can be obtained by calling your financial advisor. Read it carefully before you invest.