FAFSA opens early: Why families should apply for college aid now
The U.S. Department of Education opened the Free Application for Federal Student Aid, or FAFSA, on Wednesday, ahead of its anticipated Oct. 1 launch. The earlier rollout of the key college aid form could give more students a head start on securing much-needed financial assistance, experts say.
Filing the FAFSA is the gateway to all federal aid, including grants, work-study and student loans. Many states and schools also use data from the form, including income and asset records, to help determine college financial aid offers.
The earlier college-bound students and their families fill out the form, the better their chances are of receiving aid, experts say — largely because some financial aid is awarded on a first-come, first-served basis, or from programs with limited funds.
"The biggest advantage of the FAFSA opening early this year is how quickly students and families can get a sense of what aid they might qualify for," said Rick Castellano, a spokesperson for Sallie, a financial institution that offers college-planning resources and private student loans.
A new version of the FAFSA form, which launched in late December 2023, has simplified the process, making it easier for families to complete an application and get an estimate of their federal aid eligibility, he said: "Getting that picture early is especially important given changes to Pell Grant eligibility and federal borrowing."
Starting this year, provisions in President Donald Trump's "big beautiful bill" cap how much students and their families can borrow from the federal government to pay for college and graduate school. The law also includes new terms for Pell Grants, a need-based aid program for low-income students.
"The sooner families file, the more time they have to understand what they may qualify for, plan for what they'll need to cover, and take advantage of first-come, first-served aid," Castellano said.
For many families, financial aid is increasingly essential to paying the tab.
With a growing number of colleges and universities charging more than $100,000 a year, cost is the single biggest barrier to entry for prospective students, according to a recent Lumina Foundation and Gallup poll, which in early June surveyed 14,000 adults without a degree or who are working toward one, as well as nearly 6,000 college graduates and 2,000 employers.
To that end, roughly three-quarters, or 74%, of students and their families submitted the FAFSA for the 2025-26 academic year, up from the previous cycle, according to Sallie's recent How America Pays for College report. The survey polled 1,000 parents of undergraduate students between the ages of 18 and 24, as well as 1,000 undergraduate students, in April and May.
A separate survey by College Ave found that families are relying on a broad mix of funding sources to make college possible — including savings, student employment, federal and private student loans, and credit cards. The private student loan company polled 1,000 parents of current college students at four-year institutions in June.
Of all possible resources, grants — including federal ones such as the Pell Grant — are the most valuable kind of assistance, experts often say, because they provide funding that typically does not need to be repaid.
