Guide to the 2026–27 FAFSA

By: Genevieve Carlton, Edited by: Rebecca Munday, Reviewed by: Mark Kantrowitz

Published: September 23, 2025

In 2021-22, 87% of undergrads used financial aid to pay for college, according to the National Center for Education Statistics. The Free Application for Federal Student Aid (FAFSA) can help you qualify for grants, scholarships, loans, and other forms of financial aid. In addition to the more specific links below, you can learn more about the federal financial aid process on the Federal Student Aid (FSA) website.

How do you apply for financial aid using the FAFSA? Learn how to apply and how you can make the best decisions about your financial aid offers.

Who should fill out the FAFSA

If you're in college, you should fill out the FAFSA every year. Filling out the FAFSA is the first step to receiving financial aid for a degree and affording some university classes.

"The biggest mistake is not filing the FAFSA. You can't get money if you don't apply. More than 2 million students a year would have qualified for a Pell Grant, but they didn't submit the FAFSA. More than 1 million of them would have received the maximum Pell Grant," Mark Kantrowitz, a financial aid expert, said.

The FAFSA isn't just about federal student aid. It's also the form that colleges use to determine financial aid packages, and many state grants and scholarships also require it.

How to fill out the FAFSA

1. Get prepared

Before sitting down to fill out the FAFSA, you'll need to gather your documents. You'll need tax returns, along with information on your net worth and investments. If you're filing as a dependent student, you'll also need this information from your parents. This information determines your financial need.

For the 2026-27 FAFSA, you'll need your 2025 tax returns.

2. Create an FSA ID and fill out the FAFSA form

After you gather your documents, you'll also need to create a StudentAid.gov account to get your FSA ID, and so will everyone who contributes financial information to your form, such as your parents if you're a dependent. The student and parents must each get their own FSA IDs.

Once you have your FSA ID, you can log in and start filling out your form. It takes most people 30 minutes to fill out the online form, according to the Federal Student Aid office. The applicant will need to provide the parents with a custom-generated code that they can use to link their financial information with the student's FAFSA.

"Students who file the FAFSA earlier tend to get more grants. On average, students who file the FAFSA within the first three months tend to get more than double the grants of students who file the FAFSA later. This is because some grants are awarded on a first-come, first-served basis until the money runs out," Kantrowitz said.

3. Review the FAFSA submission summary

Once you submit the FAFSA, you'll receive a submission summary. Schools listed on your FAFSA also receive this summary.

The submission summary includes an estimate of your federal student aid (and federal student loans) and your Student Aid Index (SAI) number. Colleges use the SAI to determine how much financial support you'll need. This number can also tell you how much you'll qualify for in Pell Grant aid.

4. Respond to the aid offer

The schools listed on your FAFSA form will send you an aid offer after you've been admitted. This award letter or notification lists your entire financial aid package, including federal, state, and institutional aid.

Comparing these aid offers can help you decide where to enroll. Calculate your net price by subtracting grants and scholarships from the annual cost of attendance. Once you know the net price for each school, you can make an informed decision.

"Students should calculate the net price for each college by subtracting gift aid (grants and scholarships) from the annual total cost of attendance. Be sure all components of the cost of attendance are included, and that the textbook and transportation figures are accurate," Kantrowitz said.

5. Receive financial aid

What happens after you accept a financial aid offer? Your school will distribute your grants, loans, and other forms of financial aid. Most schools disburse aid at the beginning of each semester or quarter.

Financial aid is first applied to institutional charges, such as tuition and fees (and in some cases, room and board). Any leftover credit balance will be refunded to the student within two weeks so they can pay for other expenses, such as textbooks.

Your school's financial aid office can provide more specific information and answer any questions you have about the distribution process for your aid package.

6. Apply every year until graduation

The FAFSA determines your financial need for one year. That means you'll need to submit the FAFSA every year to update your financial information, receive a new aid offer, and accept financial aid funds.

You'll need tax and financial documents to reapply for the FAFSA. If your financial circumstances change, that will affect your SAI and award letter. Some changes that could increase your aid from year to year include:

• Unexpected expenses
• High dependent costs to care for a child or older adult
• High unreimbursed medical expenses

7. Graduate and start paying back any loans

Not all types of financial aid need to be repaid — that's why you should prioritize scholarships and grants.

If you take out federal loans, you'll start repaying your loans after a six-month grace period. You can choose from two repayment plans, including one based on income. Federal loans also offer loan forgiveness, consolidation, and postponement options.

Using Your Financial Aid

How do you actually use financial aid? At most colleges, the school will apply your aid toward tuition, fees, and expenses like room and board if you live on campus. Any leftover money may go to you to cover other expenses, depending on the type of aid. Some forms of aid can be used for other expenses, like school supplies, while others may not.

• Grants and student loans: At least two payments per year, typically at the beginning of each semester or quarter
• Work-study: At least once per month

You can use grants, scholarships, and loans to cover qualified education expenses.