Education Department launches key college financial aid form sooner than expected
The FAFSA serves as the gateway to all federal aid money for college-bound students, including federal student loans, work-study and especially grants.
The 2026-27 FAFSA is already available to a limited group of students in a beta test. Starting on Sept. 1, anyone can request to participate in the second phase of testing, according to an announcement from the Education Department.
All students will have access to the coming academic year's form at the beginning of October, in keeping with the typical start date.
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"We're pleased to hear that Federal Student Aid has launched FAFSA beta testing sooner than expected," said Melanie Storey, president and CEO of The National Association of Student Financial Aid Administrators.
"An earlier and longer testing window will give the Department of Education the time it needs to address any potential bugs or errors, with valuable feedback from applicants and financial aid professionals, which should lead to a smoother process when the application is opened to the broader public," Storey said.
Kim Cook, CEO of the National College Attainment Network, said she was "pleased" that beta testing for the new FAFSA is already underway and that the new FAFSA is on track to open to the public on Oct. 1.
"All these positive changes portend that the high school class of 2026 will achieve an all-time high FAFSA completion rate by the time they graduate next spring," Cook said.
For many families, financial aid is essential when it comes to covering the cost of college, which has jumped significantly in recent decades. Grants — including federal ones such as the Pell Grant — have become the most crucial kind of assistance because they typically do not need to be repaid.
The earlier families fill out the form, the better their chances are of receiving aid, since some financial aid is awarded on a first-come, first-served basis, or from programs with limited funds, experts often say.
Submitting a FAFSA is one of the best predictors of whether a high school senior will go on to college, according to the National College Attainment Network. Seniors who complete the FAFSA are 84% more likely to enroll in college directly after high school, according to an NCAN study of 2013 data.
Yet, only 71% of families submitted the FAFSA for the 2024-25 academic year, down from 74% in the previous academic year, according to Sallie Mae's recent How America Pays for College report. That's in part because of previous complications with the new form, which initially launched in late December of 2023 after a monthslong delay.
"Families reported having an easier time completing the FAFSA last year, but 58% indicated they still needed assistance, so having a head start can be beneficial especially for first time FAFSA filers," said Rick Castellano, a spokesperson for Sallie Mae.
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Los Angeles Times
a day ago
- Los Angeles Times
FAFSA application is open for early testing. Here's what to know
NEW YORK — The Free Application for Federal Student Aid for the 2026-27 school year has opened for a limited number of students as part of a beta test, the Department of Education says. The department is rolling out two beta testing phases before the application is fully available to everyone in October. At first, the FAFSA form will be available for a small number of students and families, chosen via existing partnerships with community organizations and schools. 'We're using this time to monitor a limited number of FAFSA submissions to ensure our systems are performing as expected,' the department said on Monday. In September, students will be able to request participation in the second phase of beta testing. Participation will be limited, so not everyone will be accepted, said the Education Department. Here's what you need to know. The FAFSA is a free government application that uses students' and their families' financial information to determine whether they can get financial aid from the federal government to pay for college. The application will send a student's financial information to the schools they are interested in attending. The amount of financial aid a student receives depends on each institution. The application is also used to determine eligibility for other federal student aid programs, like work-study and loans, as well as state and school aid. Sometimes, private, merit-based scholarships also require FAFSA information to determine if a student qualifies. The 2026–27 FAFSA form will be available to everyone by Oct. 1. The deadline to submit the FAFSA form is June 30, 2026. Students can start preparing to fill out the FAFSA now so they can complete it as soon as it's available. The first step in the process is to create a account and gather the following documents. —Social Security number —Driver's license number —Alien registration number, if you are not a U.S. citizen —Federal income tax returns, W-2s and other records of money earned —Bank statements and records of investments —Records of untaxed income Anyone planning to attend college next year should fill out the form. Both first-time college students and returning students can apply for the FAFSA. Students and parents can use the federal student aid estimator to get an early approximation of their financial package. Morga writes for the Associated Press. The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
2 days ago
FAFSA application is open for early testing. Here's what to know.
NEW YORK -- The Free Application for Federal Student Aid for the 2026-27 school year has opened for a limited number of students as part of a beta test, the Department of Education says. The department is rolling out two beta testing phases before the application is fully available to everyone in October. At first, the FAFSA form will be available for a small number of students and families, chosen via existing partnerships with community organizations and schools. 'We're using this time to monitor a limited number of FAFSA submissions to ensure our systems are performing as expected,' the department said on Monday. In September, students will be able to request participation in the second phase of beta testing. Participation will be limited, so not everyone will be accepted, said the Education Department. Here's what you need to know. The FAFSA is a free government application that uses students' and their families' financial information to determine whether they can get financial aid from the federal government to pay for college. The application will send a student's financial information to the schools they are interested in attending. The amount of financial aid a student receives depends on each institution. The application is also used to determine eligibility for other federal student aid programs, like work-study and loans, as well as state and school aid. Sometimes, private, merit-based scholarships also require FAFSA information to determine if a student qualifies. The 2026–27 FAFSA form will be available to everyone by Oct. 1. The deadline to submit the FAFSA form is June 30, 2026. Students can start preparing to fill out the FAFSA now so they can complete it as soon as it's available. The first step in the process is to create a account and gather the following documents. —Social Security number —Driver's license number —Alien registration number, if you are not a U.S. citizen —Federal income tax returns, W-2s and other records of money earned —Bank statements and records of investments —Records of untaxed income Anyone planning to attend college next year should fill out the form. Both first-time college students and returning students can apply for the FAFSA. Students and parents can use the federal student aid estimator to get an early approximation of their financial package. ___ The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
Newsweek
2 days ago
- Newsweek
Student Loan Update: New Plan Rolled Out to Help 1.4 Million Borrowers
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A new student loan reduction plan will be available to 1.4 million borrowers in New York City. Mayor Eric Adams on Thursday announced the loan reduction and college savings assistance program, which also offers specialized assistance for 1.6 million parents and guardians in lowering the costs of a college education. Why It Matters The program will help many borrowers who contribute to America's $1.8 trillion in student loan debt. Since President Donald Trump's One Big Beautiful Bill Act was signed into law last month, the Department of Education will abolish the SAVE program and other income-driven repayment (IDR) options by July 2028. Borrowers currently on SAVE will be transitioned to new plans, either the Repayment Assistance Plan (RAP), which is slated to launch by July 2026, or a revised Standard Repayment Plan. However, these plans typically offer higher monthly payments and may make it more difficult for borrowers to afford basic necessities. "Student loan programs have become overly complex, and the recent changes by the current administration have only made things worse," Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, told Newsweek. "Borrowers are struggling—many are in default, and some can't even access the federal loan portals they need. NYC is stepping up to reduce the burden, especially for public sector workers, by offering real solutions to lower debt and simplify the repayment process." New York City Mayor Eric Adams speaks during a news conference at City Hall on June 26. New York City Mayor Eric Adams speaks during a news conference at City Hall on June 26. Michael M. Santiago/Getty Images What To Know The student loan reduction and college savings assistance program will be available to all New York City residents, estimated to help them save a collective $1 billion. Since the city partnered with student loan platform Summer, city residents who work as public servants have lowered their debts through the federal government's income- driven repayment plans and the Public Service Loan Forgiveness program. Now the program will be available to another roughly 1.4 million New Yorkers who either already have student loan debt or are enrolling in college. "Anyone who lives in the city's five boroughs with student debt or who is planning for college can access Summer's platform for free, thanks to the city's sponsorship," Will Sealy, CEO and founder of Summer, told Newsweek. "In addition to providing financial relief, this program also removes the administrative burden on people who are trying to access loan assistance, scholarship programs, and other ways to save on college costs. We've already helped thousands of NYC employees determine their eligibility for and enroll in forgiveness programs because we've simplified the process." Parents and guardians in particular will also get specialized assistance. The city estimates the program will reduce student loan payments for New Yorkers by an average of $3,000 per year and $7,000 per year for those with advanced degrees. "Leading a financially healthy life is a difficult task when you are tackling student loan debt — something I know firsthand," Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga said in a statement. "With this new expansion, we are extending support to millions of New Yorkers who have or are thinking of taking on student loans." In the first three months of the city employee loan program, New Yorkers saw $13.8 million in savings and an average reduction of $3,800 in annual student loan payments. The pilot program was originally announced in May to help city employees take advantage of the Public Service Loan Forgiveness program, but now all New York City residents qualify to use Summer's online portal. Through this portal, you can verify your eligibility for programs that lower payments, compare repayment options and manage paperwork for enrolling in federal programs. On the college planning side, residents will have access to online tools to figure out how much they need to save and strategies to make higher education more affordable. Michael Ryan, finance expert and founder of said the program is a "smart move" by the local government, especially as it looks to keep young talent in the city. "Mayor Adams is focused on his admin's push to make the city family friendly," Ryan told Newsweek. "It's not altruism; it's to keep young talent from fleeing NYC to cheaper, more affordable places." What People Are Saying Adams, in a statement: "Getting an education shouldn't lead to a lifetime of debt; yet, for far too many New Yorkers, getting a college degree and a higher education means more bills, more debt, more money out of their pockets... Working with Summer, we will expand our groundbreaking partnership and help millions of New Yorkers bring down their monthly student loan payments by thousands of dollars and save even more on the cost of a college degree. We are lowering costs for families, helping them connect to debt relief, and making our city the best place to find opportunity, raise a family, and live the American Dream." Sealy, in a statement: "Student loan repayment and college cost planning are increasingly complex processes to navigate. Thankfully, the City of New York is stepping up to provide additional access to resources, tools, and programs to reduce that complexity." Thompson also told Newsweek: "Whether this becomes a model for other cities depends on the political climate. It's unlikely red states adopt anything close to this. They're more aligned with the administration's stance on repayment. But in blue or more progressive-leaning areas, this could absolutely catch on. That said, don't be surprised if this ends up being another battleground in the courts." What Happens Next As the first program of its kind for any major U.S. city, Sealy said Adams and the New York City government are setting a larger example for what other cities can do to improve affordability for residents. "This public-private model lets other cities leverage existing expertise without building from scratch," Sealy said. "Student debt affects local workforce retention and economic development. Cities don't need to wait for D.C. to take action when they have the tools to help their own residents today. Many other large municipalities already have similar programs of their own in the works, which we're excited to support."
