New FAFSA Features Explained, Streamline Your 2025–26 Application

The Free Application for Federal Student Aid (FAFSA) is a crucial tool for students seeking financial assistance for higher education. For the 2025–26 academic year, the FAFSA has undergone major updates aimed at simplifying the application process, increasing accessibility, and expanding financial aid opportunities. These changes ensure that students and families can apply more efficiently and accurately, helping them secure the funds they need for college.

Key FAFSA Updates for 2025–26

The FAFSA updates focus on reducing complexity, improving accuracy, and expanding financial aid eligibility. Here are the most significant changes:

Feature	Description
Simplified Application	The number of questions has been reduced from over 100 to just 36, making the application process much faster.
Student Aid Index (SAI)	Replaces the Expected Family Contribution (EFC) and allows for negative values (as low as -1,500) to better reflect financial need.
Direct IRS Data Retrieval	Automatic transfer of tax information from the IRS, reducing errors and improving accuracy.
Mandatory FSA IDs for Contributors	Parents and other financial contributors must create an FSA ID for verification and security.
Expanded College List	Students can now list up to 20 colleges instead of just 10, increasing their application options.
Earlier Availability	FAFSA opens earlier in the year, giving families more time to apply and plan financially.
Elimination of Drug Convictions & Selective Service Requirements	Students will no longer be disqualified for past drug convictions or failure to register for Selective Service.
Improved Multi-Language Support	FAFSA is now available in 11 languages, making it more accessible for diverse communities.

Why the FAFSA Matters

Filing the FAFSA is the first step in securing federal grants, work-study opportunities, and student loans. Many states and colleges also use FAFSA data to determine institutional and state financial aid awards. Even if you believe you may not qualify for aid, submitting the FAFSA is recommended since some schools offer merit-based scholarships that require a FAFSA on file.

What’s New in the 2025–26 FAFSA?

1. Fewer Questions, Faster Process

The FAFSA form has been simplified, cutting the number of questions down to 36 from over 100. This reduces the time needed to complete the form and minimizes confusion for applicants.

2. Introduction of the Student Aid Index (SAI)

The Student Aid Index (SAI) replaces the Expected Family Contribution (EFC). Unlike the EFC, the SAI can be negative (as low as -1,500), providing a more accurate measure of financial need.

3. Automatic IRS Data Retrieval

Tax information is now automatically transferred from the IRS, eliminating the need for applicants to manually enter their income data. However, all contributors (parents, spouses, etc.) must consent to this transfer.

4. Mandatory FSA ID for Parents and Contributors

To enhance security and prevent fraud, all individuals providing financial information must create an FSA ID. This applies to parents, spouses, and other contributors.

5. More Colleges, More Choices

Students can now send their FAFSA to up to 20 colleges, compared to the previous limit of 10.

6. Expanded Pell Grant Eligibility

More students will now qualify for the maximum Pell Grant award, which has increased to $7,395 per year.

7. Elimination of the “Sibling Discount”

Previously, families with multiple children in college received additional aid. This provision has been removed, which may impact some families financially.

8. Multi-Language Accessibility

To make the application process more inclusive, the FAFSA is now available in 11 different languages.

9. Removal of Drug Convictions & Selective Service Requirements

Students will no longer be disqualified from receiving federal aid due to prior drug convictions or failure to register for Selective Service.

Step-by-Step Guide to Completing Your FAFSA

Step 1: Create Your FSA ID

Before starting your FAFSA, create an FSA ID at studentaid.gov. This ID is required for both students and contributors (parents/spouses).

Step 2: Gather Required Documents

To complete the FAFSA, have the following documents ready:

• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
• 2023 federal tax returns (for the 2025–26 application)
• Records of untaxed income (e.g., child support, veteran benefits)
• Bank statements and asset records

Step 3: Start the FAFSA Application

Visit FAFSA.gov and select the 2025–26 FAFSA application. Use your FSA ID to log in.

Step 4: Use IRS Direct Data Exchange

When prompted, agree to transfer your IRS tax data directly into your FAFSA to ensure accuracy.

Step 5: List Your Colleges

Add up to 20 colleges to your FAFSA. Schools will use this data to determine financial aid eligibility.

Step 6: Review and Submit

Double-check all entered information for accuracy. Once complete, submit the FAFSA. You will receive a confirmation email from the Federal Student Aid Office.

Step 7: Check Your Student Aid Report (SAR)

Within 3-5 days, you will receive your Student Aid Report (SAR), which summarizes the FAFSA data and indicates your expected financial aid package.

Common FAFSA Mistakes to Avoid

1. Missing the Deadline

Submit your FAFSA as early as possible to maximize aid eligibility.

2. Incorrect Tax Information

Use the IRS Direct Data Retrieval Tool to avoid errors when entering income data.

3. Not Creating an FSA ID for Contributors

Parents or other financial contributors must create an FSA ID for verification.

4. Forgetting to List Colleges

Failing to add schools to your FAFSA can delay financial aid processing.

5. Providing Incorrect Dependency Information

Make sure to accurately report household size and dependency status to avoid rejections.