Education Department launches key college financial aid form sooner than expected
The Education Department said the roll out of the 2026–27 FAFSA will be on schedule this year, with beta testing already underway
The U.S. Department of Education is making the Free Application for Federal Student Aid available earlier this year, which experts say may address some of the bugs that have plagued previous application cycles.
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.
FAFSA completion is a predictor of college enrollment
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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This story originally appeared on: CNBC - Author:Jessica Dickler
