Understanding the FAFSA and its Future

For many families, paying for college can feel overwhelming, but there is an important tool available to make higher education more affordable. It’s called the FAFSA (Free Application for Federal Student Aid). The form is currently used by the Department of Education to determine a student’s eligibility for financial aid. Understanding how it works and when to submit it can unlock significant financial aid opportunities.

Completing the FAFSA is required to be considered for:

• Federal grants (such as the Pell Grant, which does not need to be repaid)
• Federal student loans
• Federal work-study programs
• State and institutional aid at many colleges and universities

It is important to note that the FAFSA is not just for families who believe they qualify for need-based aid. Many schools require it for merit scholarships, and eligibility thresholds are often broader than many people expect.

How the FAFSA Works

The FAFSA collects financial information from students and, in most cases, their parents. This includes:

• Income and tax information
• Assets such as savings and investments
• Household size and number of students in college

Using this data, the government calculates the Student Aid Index (SAI). Colleges use the SAI to determine how much and what type of financial aid a student may receive.

Once the FAFSA is submitted:

• The student selects the colleges that should receive the information.
• Each school prepares a financial aid offer outlining grants, scholarships, loans, and work-study eligibility.
• Students and their families review and compare offers to help make enrollment decisions.

What You Need to Know About FAFSA Deadlines

There are three types of FAFSA deadlines: federal, state, and school-specific:

Federal Deadlines

The federal FAFSA deadline is typically June 30 at the end of the academic year for which aid is requested. For example, aid for the 2025–2026 school year would have a federal deadline of June 30, 2026. However, waiting until this deadline is not recommended.

State Deadlines

Many states award financial aid on a first-come, first-served basis, and their deadlines can be much earlier—sometimes as early as the fall or winter of a student’s senior year. Missing a state deadline can result in loss of access to grant funds.

Specific School Deadlines

Colleges often set their own FAFSA deadlines, especially for institutional grants and scholarships. These deadlines may align with application deadlines, including Early Decision, Early Action, or Regular Decision, meaning that some schools require the FAFSA to be submitted by November, December, or January to receive full consideration for aid.

Play it Safe: Submit Early!

As a rule, the FAFSA should be completed and submitted as soon as it opens. It usually becomes available on October 1 for the following academic year, although exact launch dates can vary. (This was the case in 2024-25 when the FAFSA underwent significant changes, and the launch date was delayed to accommodate those changes.)

There are three main advantages to submitting early:

• Eligibility for limited funds is maximized.
• Stress is reduced during the spring of senior year.
• There is more time to resolve errors or verification requests.

How Will Changes in The Department of Education Affect Federal Student Aid?

Currently, the Department of Education (DOE), through its subagency, the Office of Federal Student Aid (FSA), administers the FAFSA. However, with the ongoing changes at the DOE, there is concern about its future. On March 20, 2025, a presidential executive order directed the Secretary of Education to facilitate the closure of the DOE and return control over education to state and local authorities. Since the DOE currently oversees FAFSA and federal aid programs, there are questions about who would manage them. Here are some possible outcomes and concerns:

1. Management responsibility could be shifted to another federal agency. The FAFSA may continue, but under a different bureaucracy. This could mean processing and distribution delays during transition. In addition, there could be changes in how systems are managed and funded, and customer support and technical infrastructure could also be affected. 
2. Some aid programs could be cut or eliminated. Students — primarily low-income and first-generation — could lose access to critical financial support, making college less affordable.
3. Administration disruptions or delays in processing aid packages could occur. With fewer support and tech staff available, this is a significant risk.
4. Policy changes are possible. While the form and aid are backed by statute, Congress or a future administration could change the rules for federal assistance and eligibility. Federal financial aid in the years ahead will depend on Congress maintaining current laws. 

Although changes may be coming, you should keep filing your FAFSA. The form is still open and being processed, and is required for federal, state, and institutional aid. Completed accurately and on time, it is currently one of the most powerful tools families have to reduce the cost of college. Even those who believe they won’t qualify for aid should still submit the FAFSA, as many opportunities depend on its data. So, if you haven’t already filed, make it a priority to do so. When it comes to financial aid, early and informed action makes a real difference. 

At Moxie College Counseling, we provide the support needed to navigate the ins and outs of the college application process. Through counseling services, essay assistance, resume review, interview preparation, and more, our goal is to make this journey as stress-free and rewarding as possible. Contact us to schedule a call or a free Meet ‘n Greet with a member of our staff.