FAFSA 2026–27: Every Major Change Explained (November 2025 Update)
The 2026–27 Free Application for Federal Student Aid (FAFSA) launched on September 24, 2025 — a full week ahead of the traditional October 1 date. This is the first full year of the Student Aid Index (SAI) replacing the Expected Family Contribution (EFC), plus brand-new asset exemptions from the One Big Beautiful Bill Act (Pub. L. 119-21, signed July 4, 2025).
The 7 Biggest Changes for 2026–27
- SAI fully replaces EFC – can now be negative down to –1,500 (max Pell $7,395)
- No more sibling discount – multi-child families may see less aid per student
- Family farms & small businesses (≤100 employees) completely exempt – huge win for rural & entrepreneurial families
- Foreign earned income now counted for Pell eligibility
- Only delineated 401(k)/IRA contributions reported as untaxed income
- Form reduced to under 50 questions for most families
- Immediate SSN verification & email contributor invites