If you’ll be filling out the FAFSA (Free Application for Federal Student Aid) for the 2026–27 academic year, or helping students do so, you should know about some important changes. The main application for college financial aid made some key updates designed to make the process faster, easier, and more equitable for students and their families. Here’s what you need to know.

1. Faster FSA ID Setup

Every student and parent who reports information on the FAFSA needs to set up an FSA ID, which is basically a username and password that allows them to access the FAFSA. In the past, students and parents needed to create their FSA ID a few days before they planned to start the application in order to have their identity verified. Starting with the 2026–27 FAFSA, that wait has been eliminated. Thanks to a real-time match with the Social Security Administration, applicants who have a Social Security number can create their FSA ID and complete their FAFSA on the same day.

2. Easier Way to Invite a Parent (Contributor)

Previously, when students invited a parent (known on the FAFSA as a “contributor”) to complete their section of the FAFSA, they were required to provide the parent’s full name, Social Security number, and date of birth. This created problems when that information was missing or incorrect.

Now, students only need to provide their parent’s email address to send an invitation. Parents will receive a secure code to enter when completing their section of the student’s FAFSA, ensuring their portion links directly to the student’s application. The email address used by the student for the invitation does not need to match the one used to set up the parent’s FSA ID (more good news!).

3. Fewer Assets Reported

The new FAFSA also eliminates some of the assets that need to be reported by families. Applicants will no longer be asked to report the net worth of:

• Small, family-owned businesses with 100 or fewer full-time employees
• Farms where the family resides
• Family-owned commercial fishing businesses

These changes are intended to simplify the application process and reduce the burden on families with small, family-operated businesses.

What This Means for Students and Parents

Together, these updates make the FAFSA more user-friendly and less time-consuming. Families can now start the application process right away, contributors can be added more seamlessly, and fewer families will need to calculate complicated asset values.

The bottom line: if you’re planning to attend college in the 2026–27 school year, completing the FAFSA should be simpler than ever before.