The U.S. Department of Education on Wednesday opened the Free Application for Federal Student Aid (FAFSA) ahead of its anticipated October 1 start. The early rollout of key university aid forms could give more students a head start on securing much-needed financial aid, experts say.
Filing the FAFSA is your gateway to all federal aid, including grants, work study, and student loans. Many states and schools use data from forms such as income and asset records to determine college financial aid offers.
The earlier college-bound students and their families fill out forms, the better their chances of receiving aid, experts say. The main reason is that some financial aid is given on a first-come, first-served basis or from programs with limited funding.
“The biggest benefit of the FAFSA opening earlier this year is how quickly students and families can figure out what aid they are eligible for,” said FAFSA spokesperson Rick Castellano. saria financial institution that provides college planning resources and private student loans.
A new version of the FAFSA form launched in late December 2023 has simplified the process, making it easier for families to fill out the application and get an estimate of their eligibility for federal aid, he said, adding, “Given the changes to Pell Grant eligibility and federal borrowing, understanding that situation early is especially important.”
Starting this year, a provision in President Donald Trump’s “Big and Beautiful Bill” caps the amount students and their families can borrow from the federal government to pay for college and graduate school. The legislation also includes new conditions for Pell Grants, a need-based aid program for low-income students.
“The earlier families apply, the more time they have to spend understanding what they qualify for, planning what they need to cover, and taking advantage of first-come, first-served assistance,” Castellano said.
A person walks on the campus of Muhlenberg College in Allentown, Pennsylvania, USA on March 26, 2025.
Hannah Baier | Reuters
For many families, financial assistance has become increasingly essential to paying living expenses.
More colleges and universities are charging more than $100,000 a year in tuition, and tuition is the biggest barrier to entry for prospective students, according to a recent Lumina Foundation/Gallup poll conducted in early June of 14,000 adults without or working toward a degree, about 6,000 college graduates, and about 2,000 employers.
To that end, nearly three-quarters of students and their families, or 74%, filed the FAFSA for the 2025-26 academic year, an increase from the previous cycle, according to Sully’s recent “How America Pays for College” report. The survey was conducted between April and May among 1,000 parents of undergraduate students aged 18 to 24 and 1,000 undergraduate students.
Another study by College Ave found that families rely on a wide range of financial sources to afford college, including savings, student employment, federal and private student loans, and credit cards. In June, a private student loan company conducted a survey of 1,000 parents of current college students attending four-year universities.
Experts often say that of all possible resources, grants, including federal grants such as Pell Grants, are the most valuable aid. This is because grants usually provide funds that do not need to be repaid.
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